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HMRC Simple Assessment 2018-2019 debt

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Hi everyone,
I'm currently in the process of setting up my DMP and have tasked myself with opening/filing/throwing letters I have recieved. I reopened one today, which I had forgotten about. 
In Dec 2023 HMRC wrote to me saying that I owed £505 in tax from a simple assessment calculation where I was incorrectly given marriage allowance. My earnings went over £50k 2018/2019 for the first time, so I was no longer entitled apparently. This was the first I'd ever heard of it.
They said in the letter they had previously sent me the workings out, however I have never recieved them. I called them up at the time & they said I need to pay it. They also said they were aware other people have received these letters but had never had anything prior to it aswell.
Anyway, I told the person at the time in December that I couldn't pay it, and he said I was to recieve a tax refund at some point so to call them back & pay it with this when I can.
I did recieve a tax rebate, but not enough to cover the whole amount, and I spent it. No justification for why I spent it other than needing to use it for essentials (I'm on a debt forum, you guys will understand the decisions we make when desperate).
To this day, I've never recieved any more correspondence from them. What shall I do? I'm currently not paying my non-essential payments waiting for them to default. Will this catch up with me, or given it's age will it just...dissappear...or am I being optimistic here !!
Thank you xx RM xx





Comments

  • Does anyone have any thoughts please? :-) xxx
  • sourcrates
    sourcrates Posts: 31,593 Ambassador
    Part of the Furniture 10,000 Posts I've been Money Tipped! Name Dropper
    It`s not going to disappear, HMRC has a very long memory, and this will likely re-surface just when you could least do with it.

    Best to contact them and get a plan in place, if it remains unpaid, they can take what is owed from any future benefit payments or even your state pension, so think on.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • It`s not going to disappear, HMRC has a very long memory, and this will likely re-surface just when you could least do with it.

    Best to contact them and get a plan in place, if it remains unpaid, they can take what is owed from any future benefit payments or even your state pension, so think on.
    Thanks Sourcrates, much appreciated xx
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