hmrc debt

jules1973

Hi,

Background: I owe £2500 for SA tax from 13/14. Haven't paid as yet as do not have money. On arrangement to pay until end of April but will not have money by then. I earn about £18000 a year through a PAYE job but the tax office will not use this to pay the tax bill as I did not tick appropriate box on the online return form. (My fault but I did not know it was an option).

Is it worth writing again to ask if they will reconsider payment thro tax code. I have done my 14/15 return and do not owe any tax for that year.

Also, if they refuse will do they send in tax collectors for that amount or will be an external DCA?

Thanks for any advice in advance

immoral_angeluk

Tax collectors are DCAs, they generally send them to either DCAs or get impatient and send it to magistrates and obtain a bailiff warrant. Or at least this was the process when I was a CAB debt adviser a couple of years ago, who knows, they may have grown a heart by now. Unlikely but...

I would write to them with a full income and expenditure breakdown explaining why you cannot pay it in a lump sum. Ask for them to consider either amending your tax code or accepting a monthly arrangement. Be prepared to argue as they generally don't like playing ball. Make sure you emphasis any extenating household circumstances/illnesses etc too.

If they don't agree, make any lump sum payments you can afford and be persistent. If they do pass it to a DCA you should be able to come to an arrangement with them fairly easily.