Friend's desperate... due to tax slipup..HELP pls!!!

Morning all,

I have posted this on benefits etc thread, but not much help so far from there and then i realised it would be alot better off here! :o
I had a phonecall yesterday from a friend of mine who's at her wits end......

Summary...her husband was working for a company up until about 3 mths ago, which supplied a company car. As far as i can tell, from what she said, was nowdays the Inland Revenue change your tax code to pay for the company car direct from wages (sorry if this is incorrect...we've never had a company car! lol).

Well he was made reduntant from his job about 2-3mths ago and has started working elsewhere with a paycut for them. My friend now is not working after her maternity leave...she had a 9mth old and a 9 yr old and is preggers again. get to the point... apparently they supposed to have sorted out new tax code 2 yrs ago for company car but hadnt done so, and now with new employer (minus the car), they have been told that they have to pay what is owed to the IR for the previous 2yrs...not sure of the amount, but it is to be paid back within this financial yr.

The main problem for them is...they do not dispute that they owe this money, but cannot live on what is left from wages/benefits after the IR takes the owed amount each month....

What can they do...??

Hubby is getting, after tax, NI etc, approx £600/mth (would 'normally' be around £900 b4 this situation), and then they receive about £350/mth CTF and WTC

Their rent is £625
CT £100
normal utility bills etc
loan payment...... don't know that amount but as far as i can tell the rent loan and CT take all wages and benefit each month now

So as you can see, they have no money to eat etc each month and are relying on her father's generousity at the moment, but obviously can't and don't want to do this for more that they have already.

They are not entitled to HB or CTB as gross income is £14k, they had applied and been refused due to his 'gross' salary is above their criteria.

I have suggested that she writes to them (recorded delivery of course )and express that this situation is causing them profound 'hardship' and suggest paying over a longer time limit ie 3 yrs instead of 1....but she thinks that they will not agree to that due to a telephone discussion she had with IR b4....and they stated it was her and hubby's duty to change tax code and the money is owed (they are not arguing this fact tho), and they won't enter into a discussion about alternative arrangements.

So all help/suggestions will be gratefully received and passed on to them...

I hope i have made myself clear (clear as mud probably!), but it's hard to post when you haven't got all the exact facts/figures, and the only info was got from a very stress phone call!


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