We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide

HMRC driving us to bankrupcy

I'd be very grateful for any advice. Some years ago my partner went through a very bad patch - divorce, lost business and property and was badly in debt, including having outstanding taxes owing. He's now back on his feet and has payment plans in place, including with the HMRC. All the companies involved are being very understanding and helpful and we're slowly getting there.
However, despite having agreed a payment plan with HMRC, we get letters from various departments demanding seemingly random payments. One department cancelled the direct debit we'd set up, then another added a late payment fee because we'd missed a payment. Despite being told late payment charges would be frozen at the point we'd set up the payment plan they continue to add them so that however much we pay off only a small portion is actually paying off the debt with the rest going on interest and charges and we can't see any end to it. This year my partner filled in his tax return and submitted it on time. He made the requested payment as soon as it was due and we are ready to make the second payment - in our heads we were pleased that we're finally on top of it and we were actually looking forward to clearing it on time. However, HMRC have now sent a late payment demand for this, and have stated that all payments we make go towards the existing debt. Because of that, we will never by up to date - every year will go off the historical debt, with the new year added to the end. We want to do the right thing, but feel that HMRC are forcing us to a point where we will have no option but to go bankrupt.
Can you please advise if it is true that we can't pay my partner's current tax bill until all his previous tax debts are cleared? Thank you

Comments

This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 354.4K Banking & Borrowing
  • 254.4K Reduce Debt & Boost Income
  • 455.4K Spending & Discounts
  • 247.3K Work, Benefits & Business
  • 604K Mortgages, Homes & Bills
  • 178.4K Life & Family
  • 261.5K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.