Tax Debt Advice Please

urbanhermit

Hello

My situation is that I've spoken to HMRC this morning, and they've advised that my debt - just under £11k, was passed to a debt collection agency in December 2015 but, as of yet, I've not heard from anyone.

I'm fully up-to-date with my tax returns and have paid HMRC £900 over the last two month with a view to paying £400 per month ongoing until the debt is clear.

I'm slightly apprehensive about the debt collection agency contacting me, as I do not have the full amount to pay them back. Obviously I can pay the agency £400 per month?

I do not own my own home - I lived in shared accommodation and do not have any other assets such as a car.

What can they do to get the money back from me and how long will I get to repay?

I'm very keen to avoid bankruptcy but am concerned that they could make me bankrupt if I cannot repay.

Many thanks in advance for any help.

UrbanHermit

sourcrates

Hi,

Usually they will write and phone, they may offer discounts, you can pay monthly, no one pays full amount outright to a DCA.
If all that fails, court action and a CCJ is a possibility.

Bankrupcy is unlikely as you have no assets, how would that benefit them ?

Just make an arrangement to pay, you can do it online, no need to speak to anyone, all very simple these days !!

urbanhermit

Hi

Thanks for your reply.

So, presumably, as long as I offer to pay something, then they are more likely to accept that, even if it means a longer repayment time i.e. 24 months?

UrbanHermit

National_Debtline

Hi there,


The most common ways the HMRC would enforce the debt is a debt collector, county court, bailiffs (they do not need a court order for this) and/or bankruptcy.


When the debt collector contacts you, you should send a SOA and make your offer to repay. There is no official time limit for repayments but, if you are still trading, they will normally like to be repaid within 6-12months. If this is for PAYE or VAT then they may be more aggressive in collecting the debt.


You could speak to Business Debtline for more detailed advice www.businessdebtline.org


Laura
@natdebtline