can't pay tax

Legacy_user

Hi some advice.

i owe 2500 from SA and i can't afford it. i used to rent two houses out but i live in one now. i have a long term health condition. told the tax office today i have never worked and they convinced that i have. and i am self employed. but i am not. they told me that i need to ring them monday and do a income and outgoings. i have do that and it is -50 . what can the tax man do?

Darksparkle

What proof do they have that you are working?

Are you on benefits?

xylophone

What proof do they have that you are working?

Are you on benefits?

https://forums.moneysavingexpert.com/discussion/comment/71538683#Comment_71538683

The OP says he is on ESA but does not specify what kind.

System

i am on benefits. i got 440 for motorbilty and 440 for ESA

Farcasting

There isn't much you can do really, HMRC wont write it off. they could possibly stop pursuing you for it until your income level improves and you can afford to pay it back or you could speak to DMB and setup a payment plan im unsure what they would be willing to accept tho.

System

could it wait until i sell a house?

Dazed_and_confused

If they had any sense the would force you to sell the second property and take the tax out of the sale proceeds.

That may make you think twice about spending all the profit without saving enough for your tax if you were to rent out property in the future.

If only those of us PAYE could be so blase with our tax monies

System

if only those of us PAYE could be so blase with our tax monies


If only people who are Disabled could actually get a job and Pay as you earn

xylophone

Previous posts indicate that you are aged 26, have CP and are too disabled to work.

It seems that you receive ESA ( this is income related?) and DLA but you use this (all or some of it) for a motability vehicle.

You are a landlord - formerly you rented out two properties but now only one as you occupy the other.

You were in self assessment and declared the rental income.

Have HMRC provided a calculation showing how the underpayment (£1300? £2500?) has arisen?

Do they consider you employed because they regard your rental activity as a business or is there some other reason?

Farcasting

hayes5 wrote: »

could it wait until i sell a house?

call DMB 0300 200 3822 tomorrow and ask, explain your circumstances they may be lenient or they may just say
'sorry not our problem. you knew you would have a liability you should have put money aside for it'

xylophone

And what happened to the third property?

https://forums.moneysavingexpert.com/discussion/comment/69955444#Comment_69955444 post 1.

Have you sold it and not paid CGT perhaps?