Tax Bill and Worried Sick

Bluediamond

We entered onto a DMP with Payplan 18 months ago and they have been great. We were putting £100 aside each week to cover the tax bill that we get each January. This year we managed to pay it okay but since November last year my DH has been scratching around for work since the construction industry hit a low and we just have been surviving on my wage and what ever he gets. We have not been able to save anything this year as we have had one salary more or less wiped out. We have adjusted our Payplan payments to reflect this and only this week coming has DH got some regular work. We have 7 months to find about £3000 to pay the tax man and I have no idea what we are going to do. We are in arrears with the mortgage and owe extra all round where we have had to borrow from family to survive. We have never had it so bad and this is the first year we have never put money away each week. It is so frightening as you just think what can go wrong next. All the while MR Taxman looms over our heads and all we can think of is going to jail for non payment of tax !..Rubbish isn't it

Anyone else in this situation?

BlueDiamond

craftingqueen_2

Hi BD,

Sorry to hear what you are going through. Is there anyone you can talk to at the Tax office (sorry not an expert on the taxman).
Is there any chance your hubby can get a job when things are slow,anything is better than nothing.
We have friends who are self-employed and they have a permanant job for 2-3days a week,for when work is not about.

CQ

myrnahaz

If I was you I'd get on to the Inland revenue immediately, so at least you know what to expect. I had an unexpected tax bill of £1400 in January because the taxman gave DH the wrong tax code and, because I didn't send self assessment until 31 January, they said I was too late to have the tax spread over this year's pay and had to pay the lot straight away (they threatened me with bailiffs and it genuinely was the revenue's fault). I didn't know there was an error until I did the SA, but you know there's a possible problem so you have a chance of getting some help.

katyw

Hi Bluediamond.

Firstly, don't worry. HMRC are not all as bad as we make them out to be (I don't work for them but I am a tax advisor). Is this arrears you are trying to pay or is it a payment on account for the 2007/08 liability?

You might also want to consider posting this on the tax thread too.

Bluediamond

Hi KATYW

No this is 2007/08 that we will have to pay January. Do you think I should call them and tell them as mentioned above. My DH pays 20% tax each week out of his sub contract earnings.

LilacPixie

Call them. They don't bite really. To be honest I doubt they can do much until his SA form has been recieved and true liability known. As long as your SA form is truthful and accurate then you will not go to jail for non payment of tax. I think jail terms are now saved for tax evaders not those in payment difficulties.

Princess_Jane

When my self-employed OH was young and stupid he didn't bother paying any tax for about two years.

Just didn't pay - idiot.

When we moved in he got his act together and now pays his debt to the taxman off by S/O every week.

So if he is anything to go by the IR won't prosecute immediately...thought some prison food might have taught him a lesson IMO, I pay enough tax on two jobs!

scared12

HI

I am new here and am in such a state. My partner (soon to be very ex) told me that after he went BR we could start again in my name. I work part time too. So stupidly (I know ) I put the business in my name. He has never done much to pay much tax and I now have an attachment of earnings order on my part time job to pay tax (from what year I dont know!). Now I have finally found out that he hasnt paid tax on this business for over three years.

I know that he had a bumper year this year 2007/2008 and hasnt made any provision for tax. Its all in my name and I know I've been stupid so what do I do. Do I go to the tax man and hold up my hands and say "sorry I dont know what to do" Will I be prosecuted and go to prison - I have two kids.

I am really really scared and am in a mess

can someone please try to point me in the right direction.

thanks

bank_of_slate

Hi Scared, I would re-post this, starting your own thread on the tax board
...Linda xx

Burlesque_Babe

I really doubt there would be any thoughts of prison unless you were deliberately evading payment (which obviously you aren't)

I would call them asap and tell them - now - and ask what the options are.

I was also concerned about finding £1500 or so by the end of January and as I'm now part salaried/part self employed I can have it taken via my tax code from next April - result - worry over

Bluediamond

Hi Scared12

So sorry to hear of your situation...life must be tough for you right now.

I have no idea what to advise but surely the first thing that you need to do is to GET some advice.

You say that he made no provision to get the tax money put away so that is where me and my DH are going wrong. We DID put the money away but have had to use it since November to pay the mortgage each month and to live basically. So we are in deep trouble but we had nothing to live on apart form my wages but that covered the food and utility bills.

Just to let you know that this forum supports people like me and you and offers advice when we are in difficulty. Hang on in there and get some advice. I think like me you will have to call the Tax Office and ask where we stand.