HMRC debt

london1973

I owe approximately 20k to HMRC in unpaid tax from the covid period, i was paying this down on a monthly instalment plan until the middle of last year when it became simply impossible to continue-point is there was regular movement on the debt until relatively recently

it has been ominously quiet since, the occasional statement, but no threatening letters or field officer visits etc

i am wresting with how to play it, from experience many years ago (please no ‘have you not learnt anything posts’!) they simply would not entertain any form of nominal payment plan, even in the short term, i think the max i could get to was 18 months, which i would be unable to support currently.

its hard to predict the future, so i can’t say when i can afford to start paying it down again, so whether to keep quiet and let it drag and and deal with it as and when (my usual tactic 🙄) or to be proactive and maintain some communication

not sure

TheAble

I think you need to try and find some room in your budget to pay something. HMRC is one debt that's not going to go away; being proactive is the correct approach in this instance I would say.

BoGoF

Interest is accruing delay so unless you have any bankruptcy intentions then pay what you can until they come knocking.

Hoenir

In your own interest to repay the debt. Playing games solves nothing at all. Pay whatever you can ever month. 

fatbelly

Is insolvency an option? I.e. Do you own property? Are you in a job where insolvency is forbidden?

london1973

Hoenir said:

In your own interest to repay the debt. Playing games solves nothing at all. Pay whatever you can ever month. 

fatbelly said:

Is insolvency an option? I.e. Do you own property? Are you in a job where insolvency is forbidden?

I am not playing games, but sometimes it pays not to poke the bear, perhaps not here but the notion i am playing games is wrong, I’m tempted to use a stronger word but I’m fed up with ending in spats on this marvellous forum… yes clearly repaying the debt is in my own interest…

fatbelly thanks, bankruptcy is not ideal, not forbidden but i advise businesses (no sniggering) and obvs any due diligence might throw that up and impact my ability to gain and maintain clients..but i am open to suggestions..i genuinely believe my situation will be vastly improved in 12-18 months time, work is really picking up after a period of difficulty, mentally and professionally, so its buying time - no i don’t own a property, lucky enough to live in my partner’s, i am however working on a couple of ‘sweat equity’ deals at the moment that will give me a share in client’s companies, as a way of structuring my fee, and don’t want to complicate that

fatbelly

Advice to make payment if there is genuinely no surplus income is illogical.

In that case you may wish to discuss this with HMRC. They will not act quickly so that does give you time to see if things improve. Bear in mind that they are one of very few organisations that will issue a statutory demand eventually.

If you have no assets, not a homeowner and have less than £75 per month surplus, then you may wish to hold the possibility of a Debt Relief Order in reserve as ultimately it would be less onerous than full bankruptcy and now has no fee 

Hoenir

london1973 said:

Hoenir said:

In your own interest to repay the debt. Playing games solves nothing at all. Pay whatever you can ever month. 

I am not playing games, but sometimes it pays not to poke the bear, perhaps not here but the notion i am playing games is wrong, I’m tempted to use a stronger word but I’m fed up with ending in spats on this marvellous forum… yes clearly repaying the debt is in my own interest…

Having had many dealings with the HMRC over the years. There's little let-up once they are on the case. Only matter of time. 

Andyjflet

I'm not saying this is the correct thing to do, but from my experience, I owed money to HMRC, after waiting 90 minutes on the phone I spoke to an advisor, he "insinuated" that if I kept making payments then they were unlikely to get heavy and call it in, so I drip fed the money £1000 here and there and didn't get any more letters, they do catch up eventually, my advice is to send them something regularly through the online portal until such time that you hear from them.