outstanding tax!

sofedupwithbank

Help, I wonder if someone can give me advice. We have outstanding tax owed to Inland Rev. I have paid half but still owe the other half. I am currently paying of £1000 per month.

However, i spoke to inland rev asking if they would stop the interest as every fourth payment is now interest. They informed me under no circumstances would they stop the interest. I asked if i went through a company for an iva they said they would then probably consider it.

Am at a loss that they would want me to put myself further in debt with a company that organises IVA (as i believe you have to pay the company who organises it a %)

So essentially i am seeking answers for the following

1.Can the IR stop interest?

2. Should I enter into an IVA (this is my only debt)

3.Also despite the regular payments they have now threatened to send bailiff or representatives to our home to see what could be sold to clear the debt.

Help, I feel totally lost and dont know where to turn to. I attempted to get to the local CAB. Unfortunately they had locked the door as they were full and when i tried to phone them could get no answer.

I would be grateful for any advice

Many thanks

agrinnall

How much do you owe? If you're paying back £1000 a month that suggests it's a very large amount. You may get some advice about dealing with HMRC on here but you might be better posting (with more details) on the Debt Free Wannabe board as there is more experience on there about methods of dealing with a debt.

antonic

First question :

1) Are you employed or self employed ?
2) What type of tax is outstanding ? is it
a) Self Assessment ?
b) VAT ?
c) PAYE ?

If you answer these questions I *may* be able to help you.

sofedupwithbank wrote: »

Help, I wonder if someone can give me advice. We have outstanding tax owed to Inland Rev. I have paid half but still owe the other half. I am currently paying of £1000 per month.

However, i spoke to inland rev asking if they would stop the interest as every fourth payment is now interest. They informed me under no circumstances would they stop the interest. I asked if i went through a company for an iva they said they would then probably consider it.

Am at a loss that they would want me to put myself further in debt with a company that organises IVA (as i believe you have to pay the company who organises it a %)

So essentially i am seeking answers for the following

1.Can the IR stop interest?

2. Should I enter into an IVA (this is my only debt)

3.Also despite the regular payments they have now threatened to send bailiff or representatives to our home to see what could be sold to clear the debt.

Help, I feel totally lost and dont know where to turn to. I attempted to get to the local CAB. Unfortunately they had locked the door as they were full and when i tried to phone them could get no answer.

I would be grateful for any advice

Many thanks

Mikeyorks

sofedupwithbank wrote: »

However, i spoke to inland rev asking if they would stop the interest as every fourth payment is now interest.

Do you have your arithmetic correct? At 3% interest charged on late payments that would be a huge debt.

1.Can the IR stop interest?

Not under any normal circumstances - as it is legislative

antonic

The only thing that accrues 3% interest in my experience is an Officers Assessment for VAT, following either an inspection OR a Voluntary Disclosure of errors made,

(The 3% is compensatory interest for VAT that should have been paid at the right time).

Is this the case OP ?

Mikeyorks wrote: »

Do you have your arithmetic correct? At 3% interest charged on late payments that would be a huge debt.



Not under any normal circumstances - as it is legislative

Mikeyorks

It's the standard rate on all taxes and duties paid late.

http://www.hmrc.gov.uk/rates/interest-late-pay.htm

SA would be my guess.

antonic

Without a reply from the OP, were all guessing !:D

Mikeyorks wrote: »

Do you have your arithmetic correct? At 3% interest charged on late payments that would be a huge debt.



Not under any normal circumstances - as it is legislative

Mikeyorks wrote: »

It's the standard rate on all taxes and duties paid late.

http://www.hmrc.gov.uk/rates/interest-late-pay.htm

SA would be my guess.

Mikeyorks

antonic wrote: »

Without a reply from the OP, were all guessing !

Not wholly. I'd glanced back at previous posts and - although not conclusive - it looks more like SA when 'job' is mentioned.

But my main point was about the arithmetic. If 3% interest is stacking up £1k per 4 months ...... that's close to a £100k liability. And I remain dubious.