Summary warrant

Purdy2011

Please help, my husband owed 7021 in tax due to having a company car which he thought was a pool car, anyway this was being discusse with the tax office since 2006 and yesterday we received a letter saying he now owes £70,000 . If we don't pay this amount in seven days they will issue a summary warrant which then, I understand, leads to bankruptcy etc. Finding £7000 was going to be very difficult but £70,000 will leave us with nothing, homeless and still in debt. I feel suicidal and don't know what to do. Please can you give me some advice. We have two small children and I can't face being made homeless , please help. All the accountants are closed for christmas and I don't know where to turn. Please help

ceeforcat

I would be fairly sure that this is a huge error, £70000 underpaid would suggest untaxed employee benefits of £175000 if your husband was a higher rate taxpayer and considerably more if he was not - very unlikely I would have thought. Looks like an extra nought? Has your husband telephoned HMRC?

Purdy2011

Than kyou for the reply - yes he has and they told him to seek advice from an accountant but they are all on holiday - he is on an ok salary but no where near that much, although he does may 40% tax and it goes back to 2006 on the letter - i feel sick and have spent the whole day in tears - will they take our house off us? They have sent a calculation with the letter which says every year we owe £14000 but he pays tax as he earns and it seems to be the right amount as it is almost half what he brings home oce the NI is included.
What else can we do? I just dont know where to turn - we simply cannot find £70,000 and would never manage to pay it off even monthly as is the case with everyone money is so tight at the moment. I have just gone back to work but once the childcare is paid there isnt much left over although it is helping a bit with the bills - I am at my wits end, I am so worried about it. He spoke to HMRC before Christnmas and they told him it was £7000 and we were trying to find a way to pay that but now this and it is the supporting calculation letter that is stressing me out the most as they seem to have found a reason why we owe all this money.

dtaylor84

£14,000 a year in unpaid tax at 40% would mean your husband was receiving a benefit in kind of £35,000/year, which would be an impressive car. What does the calculation say? Does your husband have any P11Ds from his employer?

ceeforcat

Let's at least try to ease your fears a little before the weekend.

The absolute maximum car and car fuel benefit in any one year is 98000 @ 35% which is £34300. This would be for a car with a list price of £80000 or more with full fuel benefit also being received.

Can you give us a breakdown of at least one of the figures shown on your letter?
Please also provide the make, model and cc of the car and say whether diesel or petrol?
Also, what is your husband's basic salary per annum?
What is the code on his payslip (something like 3 numbers followed by an 'L' or a 'T'

Please try to be calm and keep visiting here - there are many tax professionals, ex-HMRC and current HMRC on here. It really does seem to be an error - I would be taking HMRC to task over the unnecessary stress caased.

I have also sent you a PM - try not to worry!

Purdy2011

The car he had (only for 1 year) was an Audi allroad diesal which was second hand although only a year or two old. I dont know the engine size unfortunately. His other benefits are BUPA and a pension. His annual salary is £80000. the figures on the letter are -l called SA Balancing Charge which have been charged annually and amount to £17308.65 per year plus interest. Some are called SA First Payment on account and SA second payment on account which are each £8404.75 plus interest and these appear twice a year. I am very grateful for your help - I cant sleep and am so so worried about it - Can they make us sell the house to pay it? I dont understand how it can add up to this much money.

Purdy2011

i forgot to mention he also works on average 70 hours per week so there is no way he can take a second job to help pay this off as he is never at home as it is.

ceeforcat

It looks like what you have received are statements - have you received nothing else? YOu should have received a calculation for each year.

This underpayment is impossible to reconcile and I firmly believe that HMRC have made a complete mess - could well be that the tax has been omitted completely from each calcylation. Tax due on £80000 is about £22000 per year - how could he be underpaid £14000 per year?

Can you post up any payslip details for any March month e.g. March 2009, March 2010 etc or any P60 details?

Poppy9

Is it normal to take 5 years to resolve a tax issue as OP states he only had the car for 1 year - assume 2006, then it seems an excessively long time to sort the matter out.

Mikeyorks

Purdy2011 wrote: »

I dont understand how it can add up to this much money.

As post #4 - it would help, in fact it's essential, if you posted the P11D figures for at least the affected year? If this is all about 'benefits in kind' - then it is those figures HMRC normally work from.
You might also confirm if he has been filing SA Returns since at least 2006? Otherwise it is strange this has been assessed so quickly - unless there is more background than you indicate?

His tax codes for '2006' and the current year would also help assess if the benefits have been factored in or not. And if you would confirm he really only had a company car 'for 1 year only'?

jennifernil

If on PAYE you are not normally required to make POAs unless you have another source of untaxed income, the whole thing sounds like a right mess!