Income Tax Problems

aden_2

Hi,

Does anyone please have any advice regarding problems with The Inland Revenue?

Brief history-
3 years ago, my 01/02 accounts were looked into and they found me owing unpaid tax to an amount that I was unable to pay in full. I have been paying £50/month but interest charges are adding up as the total amount is not being paid up quick enough. The interest is now at 70pence/day. Can they justify this? Can the interest be freezed? Could this be seen as a similar situation to the banks regarding unfair charges and interest? Thank you for taking the time to read this. Any help would be appreciated.

Aden

CLAPTON

how much is the debt?

cash99

The interest charged is generally at a relatively low rate 5-6% and reflects commercial restitution for HMRC not having the use of the money.

The interest is rarely if ever waived. The only way of stopping it would probably be through an IVA or bankruptcy.

You may find more help on the debt board.

Townley&Co

aden wrote: »

Hi,

Does anyone please have any advice regarding problems with The Inland Revenue?

Brief history-
3 years ago, my 01/02 accounts were looked into and they found me owing unpaid tax to an amount that I was unable to pay in full. I have been paying £50/month but interest charges are adding up as the total amount is not being paid up quick enough. The interest is now at 70pence/day. Can they justify this? Can the interest be freezed? Could this be seen as a similar situation to the banks regarding unfair charges and interest? Thank you for taking the time to read this. Any help would be appreciated.

Aden

You say "interest charges are adding up as the total amount is not being paid up quick enough".

Is this your statement or HMRC?

If, its yours then i suggest you contact them again with an offer of more money to reduce interest. I would'nt hold out much hope though as you must have agreed to these payment terms in the first instance.

As with anyone really, if you are worried about the situation then telephone HMRC and dont bury your head "in the sand";)

Best Regards

aden_2

CLAPTON wrote: »

how much is the debt?

The debt is currently £4360

anniecave

Ok then I would take a look at that in the bigger picture of what other debts you have (if any) what your income is, what your expenditure is etc etc.

If you have other debts then it's probably worth looking at what you are paying in terms of interest on what debts and doing a statement of affairs etc.

If that is your only debt, then just look at paying it back as quick as possible. Can you cut back on other expenditure? Can you earn more, for example do you have spare time to get a second job? A couple of suggestions for starters anyway.

CLAPTON

well annual interest on 4360 at 5% is 218 per annum or 60p per day
or at 6% is about 261 per annum or 72p per day
so you are being charged fairly

you need to consider paying more if you want to get rid of the debt