Massive tax bill (reposted)

dae14867

Alice_Holt said:

dae14867 said:

Dazed_and_C0nfused said:

Firstly have you checked the calculations are 100% correct?

The High Income Child Benefit Charge is based on your adjusted net income so any personal pension contributions would help reduce that and you may also be due some higher rate tax relief.

You may be able to make an arrangement to pay this back over a period of time.  But be realistic, for HICBC to be due you must have had a decent income so HMRC aren't going to accept just any offer.

I am currently on £58,000... I am receiving some universal credit as my wife is working and I’m not even sure if I should be getting that.

     That sounds very odd to me - UC on a salary of £58k.
     UC looks at joint income, so you wife working would reduce the chance of receiving UC not increase it.
     Who made the UC claim? 
     Have you checked that the details on the UC payments schedule in the UC journal are correct?
    You are right to be concerned about UC, as all overpayments are recoverable regardless of official error.
    Have you put your income into a benefit calculator to check UC entitlement?
     https://www.gov.uk/benefits-calculators   

As other posters have said you need to get a detailed breakdown of the £18k and check it carefully, then when you are satisfied the amount is correct agree a repayment plan with HMRC.    
 https://taxaid.org.uk/guides/taxpayers/tax-debt/time

 HMRC are not the most forthcoming with information, so you may need to request a SAR https://www.gov.uk/guidance/hmrc-subject-access-request

Looking at the last statement it clearly says my take home pay. If they have paid this in error knowing I have called them. Do I still have to pay back? If this and the child benefit I too much is bankruptcy an option for HMRC debts. 

Billy_B_North

dae14867 said:

Alice_Holt said:

dae14867 said:

Dazed_and_C0nfused said:

Firstly have you checked the calculations are 100% correct?

The High Income Child Benefit Charge is based on your adjusted net income so any personal pension contributions would help reduce that and you may also be due some higher rate tax relief.

You may be able to make an arrangement to pay this back over a period of time.  But be realistic, for HICBC to be due you must have had a decent income so HMRC aren't going to accept just any offer.

I am currently on £58,000... I am receiving some universal credit as my wife is working and I’m not even sure if I should be getting that.

     That sounds very odd to me - UC on a salary of £58k.
     UC looks at joint income, so you wife working would reduce the chance of receiving UC not increase it.
     Who made the UC claim? 
     Have you checked that the details on the UC payments schedule in the UC journal are correct?
    You are right to be concerned about UC, as all overpayments are recoverable regardless of official error.
    Have you put your income into a benefit calculator to check UC entitlement?
     https://www.gov.uk/benefits-calculators   

As other posters have said you need to get a detailed breakdown of the £18k and check it carefully, then when you are satisfied the amount is correct agree a repayment plan with HMRC.    
 https://taxaid.org.uk/guides/taxpayers/tax-debt/time

 HMRC are not the most forthcoming with information, so you may need to request a SAR https://www.gov.uk/guidance/hmrc-subject-access-request

Looking at the last statement it clearly says my take home pay. If they have paid this in error knowing I have called them. Do I still have to pay back? If this and the child benefit I too much is bankruptcy an option for HMRC debts. 

Yes, you’ll still have to pay it back, and yes, bankruptcy is an option.

This will be your third bankruptcy, despite very high earnings. Do you know where all of your money is going?

antonic

dae14867 said:

Alice_Holt said:

dae14867 said:

Dazed_and_C0nfused said:

Firstly have you checked the calculations are 100% correct?

The High Income Child Benefit Charge is based on your adjusted net income so any personal pension contributions would help reduce that and you may also be due some higher rate tax relief.

You may be able to make an arrangement to pay this back over a period of time.  But be realistic, for HICBC to be due you must have had a decent income so HMRC aren't going to accept just any offer.

I am currently on £58,000... I am receiving some universal credit as my wife is working and I’m not even sure if I should be getting that.

     That sounds very odd to me - UC on a salary of £58k.
     UC looks at joint income, so you wife working would reduce the chance of receiving UC not increase it.
     Who made the UC claim? 
     Have you checked that the details on the UC payments schedule in the UC journal are correct?
    You are right to be concerned about UC, as all overpayments are recoverable regardless of official error.
    Have you put your income into a benefit calculator to check UC entitlement?
     https://www.gov.uk/benefits-calculators   

As other posters have said you need to get a detailed breakdown of the £18k and check it carefully, then when you are satisfied the amount is correct agree a repayment plan with HMRC.    
 https://taxaid.org.uk/guides/taxpayers/tax-debt/time

 HMRC are not the most forthcoming with information, so you may need to request a SAR https://www.gov.uk/guidance/hmrc-subject-access-request

Looking at the last statement it clearly says my take home pay. If they have paid this in error knowing I have called them. Do I still have to pay back? If this and the child benefit I too much is bankruptcy an option for HMRC debts. 

If you need a repayment arrangement with HMRC to resolve this my advice would be
1) Have details of your income and expenditure to hand when you contac HMRC as this is information they will ask for
2) Make sure you can realistically afford any arrangement and that the timescale is not excessive.
3) Make an upfront lump sum payment for the most that you can afford.
4) If an arrangement is agreed stick to it and contact HMRC if it becomes unaffordable as HMRC monitor these arrangements.
5) If agreed set up a direct debit so it gets paid/

dae14867

Billy_B_North said: it 

dae14867 said:

Alice_Holt said:

dae14867 said:

Dazed_and_C0nfused said:

Firstly have you checked the calculations are 100% correct?

The High Income Child Benefit Charge is based on your adjusted net income so any personal pension contributions would help reduce that and you may also be due some higher rate tax relief.

You may be able to make an arrangement to pay this back over a period of time.  But be realistic, for HICBC to be due you must have had a decent income so HMRC aren't going to accept just any offer.

I am currently on £58,000... I am receiving some universal credit as my wife is working and I’m not even sure if I should be getting that.

     That sounds very odd to me - UC on a salary of £58k.
     UC looks at joint income, so you wife working would reduce the chance of receiving UC not increase it.
     Who made the UC claim? 
     Have you checked that the details on the UC payments schedule in the UC journal are correct?
    You are right to be concerned about UC, as all overpayments are recoverable regardless of official error.
    Have you put your income into a benefit calculator to check UC entitlement?
     https://www.gov.uk/benefits-calculators   

As other posters have said you need to get a detailed breakdown of the £18k and check it carefully, then when you are satisfied the amount is correct agree a repayment plan with HMRC.    
 https://taxaid.org.uk/guides/taxpayers/tax-debt/time

 HMRC are not the most forthcoming with information, so you may need to request a SAR https://www.gov.uk/guidance/hmrc-subject-access-request

Looking at the last statement it clearly says my take home pay. If they have paid this in error knowing I have called them. Do I still have to pay back? If this and the child benefit I too much is bankruptcy an option for HMRC debts. 

Yes, you’ll still have to pay it back, and yes, bankruptcy is an option.

This will be your third bankruptcy, despite very high earnings. Do you know where all of your money is going?

That’s a very simple question Antonic and I wish I had an honest answer. I always seem to make bad choices with money. Rather than taking advice on which company car has the lowest tax band I choose what I want, I got a salary sacrifice vehicle for my wife which costs 450 per month because I can’t get credit from a cheaper lease company, I am currently paying only my current council tax amount as they have agreed to freeze arrears, it’s a mess. If I am honest I spend and make decisions on my feelings and it’s never been good for me. I have made attempts to clear debts but it’s never worked. I always borrow with good intentions but it always ends badly. 

calcotti

dae14867 said: Looking at the last statement it clearly says my take home pay. If they have paid this in error knowing I have called them. 

If the amount of pay for both you and your wife is correct then the UC should be correct.

theoretica

Does any of this debt predate a bankruptcy?  If so, that bit shouldn't be repayable.   However, forgotten/unknown debts cannot be added to a DRO.

dae14867

theoretica said:

Does any of this debt predate a bankruptcy?  If so, that bit shouldn't be repayable.   However, forgotten/unknown debts cannot be added to a DRO.

Hi 
Unfortunately not. 

As an example if I went bankrupt because I couldnt pay this and then in 6 months the UC decided I owed them, could this be added retrospectively as it was incurred before the  bankruptcy date. 

Spoonie_Turtle

dae14867 said:

Alice_Holt said:

dae14867 said:

Dazed_and_C0nfused said:

Firstly have you checked the calculations are 100% correct?

The High Income Child Benefit Charge is based on your adjusted net income so any personal pension contributions would help reduce that and you may also be due some higher rate tax relief.

You may be able to make an arrangement to pay this back over a period of time.  But be realistic, for HICBC to be due you must have had a decent income so HMRC aren't going to accept just any offer.

I am currently on £58,000... I am receiving some universal credit as my wife is working and I’m not even sure if I should be getting that.

     That sounds very odd to me - UC on a salary of £58k.
     UC looks at joint income, so you wife working would reduce the chance of receiving UC not increase it.
     Who made the UC claim? 
     Have you checked that the details on the UC payments schedule in the UC journal are correct?
    You are right to be concerned about UC, as all overpayments are recoverable regardless of official error.
    Have you put your income into a benefit calculator to check UC entitlement?
     https://www.gov.uk/benefits-calculators   

As other posters have said you need to get a detailed breakdown of the £18k and check it carefully, then when you are satisfied the amount is correct agree a repayment plan with HMRC.    
 https://taxaid.org.uk/guides/taxpayers/tax-debt/time

 HMRC are not the most forthcoming with information, so you may need to request a SAR https://www.gov.uk/guidance/hmrc-subject-access-request

Looking at the last statement it clearly says my take home pay. If they have paid this in error knowing I have called them. Do I still have to pay back? If this and the child benefit I too much is bankruptcy an option for HMRC debts. 

What are the elements of your UC claim? Children / rent / etc.?  Have they got the take-home pay right for both you and your wife?  (I don't know how salary sacrifice works or is accounted for on UC.)

Billy_B_North

dae14867 said:

Billy_B_North said: it 

dae14867 said:

Alice_Holt said:

dae14867 said:

Dazed_and_C0nfused said:

Firstly have you checked the calculations are 100% correct?

The High Income Child Benefit Charge is based on your adjusted net income so any personal pension contributions would help reduce that and you may also be due some higher rate tax relief.

You may be able to make an arrangement to pay this back over a period of time.  But be realistic, for HICBC to be due you must have had a decent income so HMRC aren't going to accept just any offer.

I am currently on £58,000... I am receiving some universal credit as my wife is working and I’m not even sure if I should be getting that.

     That sounds very odd to me - UC on a salary of £58k.
     UC looks at joint income, so you wife working would reduce the chance of receiving UC not increase it.
     Who made the UC claim? 
     Have you checked that the details on the UC payments schedule in the UC journal are correct?
    You are right to be concerned about UC, as all overpayments are recoverable regardless of official error.
    Have you put your income into a benefit calculator to check UC entitlement?
     https://www.gov.uk/benefits-calculators   

As other posters have said you need to get a detailed breakdown of the £18k and check it carefully, then when you are satisfied the amount is correct agree a repayment plan with HMRC.    
 https://taxaid.org.uk/guides/taxpayers/tax-debt/time

 HMRC are not the most forthcoming with information, so you may need to request a SAR https://www.gov.uk/guidance/hmrc-subject-access-request

Looking at the last statement it clearly says my take home pay. If they have paid this in error knowing I have called them. Do I still have to pay back? If this and the child benefit I too much is bankruptcy an option for HMRC debts. 

Yes, you’ll still have to pay it back, and yes, bankruptcy is an option.

This will be your third bankruptcy, despite very high earnings. Do you know where all of your money is going?

That’s a very simple question Antonic and I wish I had an honest answer. I always seem to make bad choices with money. Rather than taking advice on which company car has the lowest tax band I choose what I want, I got a salary sacrifice vehicle for my wife which costs 450 per month because I can’t get credit from a cheaper lease company

On this point, you don’t need a lease. You can get a perfectly good and reliable car for three thousand pounds. It sounds as though you are just living a lifestyle beyond what you can afford, and need to set out a budget then stick to it.

Pollycat

After you've spoken to HMRC about the HICB, I would make sorting your UC out a priority.

I think you said that the take home pay reported by your employer is wrong.

If you are being overpaid, you need to get it stopped asap.

Although losing an amount of money in benefits will have a negative impact short term, it will be better in the long run.

I can imagine that this whole situation must be very overwhelming for you but it's not going to go away.

I would definitely do a SOA on the DFW board.

You have a very good salary but don't seem to be managing it well. You need to know what you are spending your money on.

Good luck.