HMRC - massive debt

Creativeminds3

My husband has been mentally unwell for some time and has a delusion that he has paid all tax (he is self employed as a copy writer). I finally got access to his account and he has a £60000 debt. I have spoken to hmrc on his behalf and they have agreed to take off the late penalties which add up to £5000 but we still have a huge bill of £55000 that we can’t afford. He is currently not working as so unwell. They said because we have a joint mortgage they can take this money if we sell the house. Can they force us to sell, is there anything we can do. They have given us 3 months until our review

Hoenir

Yes they can pursue a legal route if you fail to voluntarily take action. Onus is on you now. 

TheSpectator

HMRC generally don't mess about (rightly so) and will no hesitate to make someone bankrupt. 

DullGreyGuy

Creativeminds3 said:

My husband has been mentally unwell for some time and has a delusion that he has paid all tax (he is self employed as a copy writer). I finally got access to his account and he has a £60000 debt. I have spoken to hmrc on his behalf and they have agreed to take off the late penalties which add up to £5000 but we still have a huge bill of £55000 that we can’t afford. He is currently not working as so unwell. They said because we have a joint mortgage they can take this money if we sell the house. Can they force us to sell, is there anything we can do. They have given us 3 months until our review

So if he has a debt what's happened? Has he underestimated how much he owes? Has he simply not paid it so it's squirrelled away somewhere?

Does the £55k include payment on account that is due? Is he working? Are payments on account needed?

ButterCheese

Has your husband been diagnosed?  If not, get that sorted.  It may help your case.  Also seek help from citizens advice or whoever they can signpost you to.  I'm assuming here (forgive me if I'm wrong) that if your husband is delusional then he won't take kindly to you getting involved, and will not be forced to sell the house if that's what it takes.  Try and make back up plans for yourself should the worst happen - have you got any family that you can talk to and who will support you?

Brie

I would suggest you talk to a debt advisor asap.  They may be able to help you sort out your family budget and make a proposal to HMRC as to how you might clear the arrears without taking drastic action. 

You could look on the debt free wannabee board and start the process yourself by filling out the statement of accounts (SOA).  But many creditors, and government ones in particular, seem to take more notice of an advisor being involved rather than if someone just DIYs it. 

Go with an advisor working for a charity so you don't lose money that might be paid on the debt.  StepChange, NationalDebtline, Community Money Advice, CAP or CAB are all recommended. 

Ultimately you might find that the debt is too much for you to pay off and HMRC might push to have a lien put on the house if not actually make you sell.  If this seems likely then maybe talking to your bank about extending the mortgage would be advisable - assuming you have the income on your own to pay them.  No one would normally suggest adding a debt to a mortgage but in this situation it may be the only or best option. 

Grumpy_chap

You may be able to obtain good advice from Stepchange and / or Business Debt Line.  Citizens Advice can also be helpful.

It would also be worth visiting the DfW (Debt-free Wanabee) area of this forum and preparing your SoA (Statement of Affairs).  That will help you assess your budget and opportunities to make efficiencies in your spending.  If you wish, you can share your SoA in the DfW forum for constructive review and suggestions.  Having your own SoA is a good budgeting tool and will be helpful in demonstrating your position to any support you may seek - such as Stepchange.

Have you assessed how the tax debt arose and is that figure given by HMRC correct or are there any assumed / estimated figures in there?  Did your husband have the money set aside and able to pay any of it?

If your husband is not working because of illness, has that been formally diagnosed?  
Are you claiming and receiving all benefits to which you may be entitled?

ManyWays

Excuse me, but a copywriter doesnt sound like a fabulously paid job, perhaps I am wrong.
How much has he earned in the last year? Has he had an accountant? Are you sure that tax bill is accurate? 
Does he or you have other debts apart from the mortgage that you are paying?
Do you have a spare room you could use for a lodger?

fatbelly

Maybe explore with

https://taxaid.org.uk/