HMRC Won't accept my minimum payment offer

Chiquarito

Please can someone help me. I have an underpaid tax bill of £2500 which I have fought and fought to clear to no avail. Was an error on both employer and HMRC but neither will admit.

I have today contacted HMRC to offer a minimum repayment to help clear the debt.

I am a single parent, work part time, and have about £50 a week left for living.

I have offered them £10 a month which they refuse to accept. They reckon i should give up my broadband and tv in order to help pay. Ive been told that they had to accept what you offered them, but now I am being told that my case will go to a debt collection company.

Surely the fact that i've contacted them, to offer to start clearing the debt, goes in my favour? Do I really have to sacrifice the television for something that wasn't my fault in the first place?

Also, is anyone able to advise why they have to speak to you in such a nasty manner? This is the second time an employee of theirs has had me in tears.

Any help and advice would be greatly appreciated.

pleasedelete

Trip trap over the bridge?

somethingcorporate

Of course they do not have to accept a tiny offer than would take you 5 years to pay back especially if the debt was built up over a much shorter time.

I'd suggest you post an SOA over on the debt free wannabe forum to help cut down your costs to enable you to be able to improve your offer.

Our personal tax is our responsibility to ensure we get right - even if it is administered by our employer.

mcjordi

sc @£10 a month it will take 20 years to clear not surprised they want more

start paying what you can now direct to them im sure theres a bank account number floating about for them somewhere.

xylophone

Are you able to work more hours?

Chiquarito

Thank you, I think I will do this, again to show willing. I'll do anything that will work in my favour, but they simply cannot have what I haven't got!

dori2o

I'm assuming that this debt is from Self Assessment, is this correct? It is not usual to pass the unpaid tax to a DCA unkless it is from SA.

Whilst to say you only have £200 a month spare, you do have bills that are not essentials.

TV- If you have a subscription service (sky/Virgin), then assuming you are not tied into that contract it is not an essential and is something you could give up to help clear the bill.

Broadband- again, unless you are tied into the contract for a set period, OR unless you need broadband in order to fulfil the duties of your employment/self employment, it is not an essential.

You need to be careful and offer a realistic payment plan that will clear the balance in as short a time as possible. £10 a month on £2000+ will not be acceptable.

The other important thing to note is that HMRC can, and do quite regularly, petition for bankruptcy for debts that taxpayers are a) unable to pay, or b) refuse to pay.

They also have powers to seize goods to cover part of the debt.

In answer to your question

Do I really have to sacrifice the television for something that wasn't my fault in the first place?

Maybe. That is your choice. They can't force you to give up your TV, but they can use different forms of distraint to get their money.

How did the underpayment arise?

Have you claimed under ESCA19? Have you had a reply to that claim?

You say you are working only 16 hours a week, could this be increased?

Are you claiming the correct benefits (Tax Credits, CTB, HB, etc)?

Chiquarito

Thank you for taking the time to reply.

Yes, this is a self assessment debt. I was on paye at the time. I have appealed via the ESCA19, to which HMRC said that they issued the correct tax code to my employer. Upon taking the issue up with my employer, they said they correctly applied the tax code that HMRC sent them. Which leaves me, well, nowhere!

HMRC have also been approached by my local MP and by the Treasurer, and both were advised that nothing can be done.

Perhaps having a television is not essential, but broadband certainly is, as my daughter needs it for her homework. Her school has an online home learning system. Can they really insist on taking this away??

Realistically I probably have about £15 a week left, once fuel and general day to day things are paid for. I don't smoke, drink, go out, go on holiday or have any luxuries at all. I work 25 hours a week and to work more hours would incur childcare fees and therefore make no difference.

Regarding the benefits, I do believe I am claiming everything I am entitled to.

dori2o

Chiquarito wrote: »

Thank you for taking the time to reply.

Yes, this is a self assessment debt. I was on paye at the time. I have appealed via the ESCA19, to which HMRC said that they issued the correct tax code to my employer. Upon taking the issue up with my employer, they said they correctly applied the tax code that HMRC sent them. Which leaves me, well, nowhere!

HMRC have also been approached by my local MP and by the Treasurer, and both were advised that nothing can be done.

Perhaps having a television is not essential, but broadband certainly is, as my daughter needs it for her homework. Her school has an online home learning system. Can they really insist on taking this away??

Realistically I probably have about £15 a week left, once fuel and general day to day things are paid for. I don't smoke, drink, go out, go on holiday or have any luxuries at all. I work 25 hours a week and to work more hours would incur childcare fees and therefore make no difference.

Regarding the benefits, I do believe I am claiming everything I am entitled to.

Tax Credits would cover upto 70% of the childcare fees (upto £175 a week)if using a registered childminder/childcare provider (i.e. after school clubs etc).

With regards to your broadband, are you on the best tariff? Maybe you could look at saving by switching providers?

Hoof_Hearted

The tax man sends you notification of the tax code, so it will be easy to see who is at fault.

antonic

Are you bring pursued by a D(ebt) C(ollection) A(gency) DCA OR HMRC itself for this amount ?.

If its a DCA (and it does sound like it by their robust response), they will insist on payment being made within a reasonable timescale and 20 years certainly isnt that ! - However the advantage for you is that they have NIL enforcement powers in that they cant distrain on you (take your goods), start CCP action against you OR make you bankrupt.

The downside though is that they may decide to pass the debt back to HMRC to collect (as its too difficult for the DCA) and it goes back to HMRC they can do all of the above and theoretically petition for your bankruptcy as the debt is > £750.00