dealing With hmrc, TIME TO PAY.

bunahilga

Hello, Ok, so, i'm self employed and was advised to declare a huge amount of net income in order to get a mortgage. Problem is, now the hmrc want paying and i'm still saving for the deposit on the house. Question is, has anyone dealt with hmrc? I hear you can do something called time to pay or set up a direct debit. They've asked for all my monthly outgoings which probably won't add up to much compared with what i've declared. Will this be a problem? I've heard that if you say the worry is affecting your health, depression etc, they are more inclined to give you time to pay? It is a bit of a worry. Also could they potentially seize my deposit? Thanks.

SeniorSam

If you have money and owe tax, you should pay the tax just like the rest of us. If you do not declare everything, then you only have yourself to blame if they find out and fine you even more.

pelirocco

Talk to them , they are whole approachable. Does the nett income you declared match the income you received? Would you have declared a different amount if you weren't looking for a mortgage

quietriot

You are expected to pay the tax owing on the income you have declared.
HMRC do sometimes offer time to pay, but this is for circumstances where people don't have the money to pay their tax bill. If your circumstances amount to "I have the money but would rather spend it on a deposit for a house" then they'll expect payment in full, and rightly so.

pleasedelete

Did you declare more than you earned or have you historically declared less than you earn?

quietriot

Looks like the income may have been inflated to get the mortgage they wanted

If you lied on the tax return, you need to amend it to the correct figures. There's a good chance HMRC will open an enquiry into the amendment, as it will look a bit suspicious if you reduce your income just after they ask you to pay the bill.

If the figures are correct, then you need to pay the tax. Don't even think about trying to get the deposit together and buy the house before HMRC can get the money, because if the tax bill is unpaid they'll set proceedings in motion to bankrupt you and get their money that way. Especially if you conveniently don't have any money to pay your tax bill shortly after paying a large deposit.