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HMRC tax problem

Hi I've been getting my life back on track after coming off a debt relief order but now I've been hit by an income tax demand of £1270 with no way of paying it.

I urgently need some help and advice as this is making me stressed and ill.

Comments

  • TheBanker
    TheBanker Posts: 2,301 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Is it a valid tax demand? If it is and you cannot pay it all straight away, speak to HMRC and see if they will accept an instalment plan.
  • Yes it is. Though I have got a possible rebate/tax relief claim going through as well which will hopefully help.
  • Sharon87
    Sharon87 Posts: 4,011 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Definitely give them a call, it's best to communicate with them rather than bury your head in the sand and end up with a lovely fine as well as the tax to pay! When does the bill need to be paid by? Is it a debt demand after filling in a self assessment or just that you've underpaid tax on PAYE as they are 2 different things.

    If it's from a tax return and needs to be paid at the end of January then definitely talk to HMRC as soon as you can.
  • They'll be getting a letter or a phonecall about it but I just can't cope with an amount like that. I just got into a good position earlier this year but everything in the last few months has gone wrong for me (losing my job and going on to a zero hours contract).

    Apparently I underpaid as 2 employers both had me as full time and with tax codes (their mess up IMO) rather than the second one having BR.
  • I had that issue previously (two employers), but a smaller amount. I called and got them to adjust my tax code to take it back over the next year. There should have been information with the tax demand about what to do and how to pay it - there are guidelines about them being 'fair' to people who are struggling, make sure you tell them if it is making you ill and that you have had problems at work. It can be difficult to get through on the phone, I've had the most luck calling at 7.50 in the morning or on a Saturday morning.
  • National_Debtline
    National_Debtline Posts: 7,998 Organisation Representative
    Tenth Anniversary 1,000 Posts Combo Breaker
    Hi

    There are some good suggestions from the others already. If you can’t get the matter resolved with HMRC you could try contacting TaxAid for help:

    http://taxaid.org.uk/

    James
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
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