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Ash
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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My partner of 13 months has been self employed since Dec 09

Resolved Question:

My partner of 13 months has been self employed since Dec 09 and for whatever reason did not inform HMRC until Dec 14. He has since handed all his paperwork to an accountant who has filed the outstanding tax returns on his behalf. The result was that he owes just over £5K in tax and NIC. He contacted HMRC yesterday to settle the oldest amount owing of £1175 and asked if he could pay the rest by a pre-agreed amount monthly. He has no assets to sell, already has a loan with the bank and has no credit card. Their response was that he should either get a credit card or a bank loan to settle but whatever, they wanted him to call back at 8pm this evening with the remainder of the balance. Needless to say he is panicking as he is unable to come up with £3800. Surely in this day and age if you offer to pay something per month rather than just ignoring it, are they not obliged to at least give his offer some consideration? If they take him to court he will only be able to offer the same. If he went down the route of applying for a credit card, there is no way he could get one sorted - assuming of course that he was accepted - in such a short space of time.
Submitted: 2 years ago.
Category: Law
Expert:  Ash replied 2 years ago.
Alex Watts :

Hello my name is ***** ***** I will help you with this.

Alex Watts :

For now please let me know why they wont accept a repayment plan?

Customer:

I'm not sure, unfortunately I wasn't there when my partner had the conversation with them. He just said that he offered to pay monthly and he was told to either get a bank loan, credit card etc and they would require payment in full by 8pm this evening. I think he was gobsmacked at their response.

Alex Watts :

Has the accountant been in touch and tried to arrange this?

Alex Watts :

How much can he afford a month/week etc?

Customer:

No, the accountant has gone on holiday until 26th Feb. However I did contact one of his partners yesterday who confirmed that HMRC would encourage you to source the money from elsewhere as they are not a "lending agency". He was going to offer to pay £300 per month on SO with the option of paying more if he had a good month and could afford it

Alex Watts :

Well they can't force the door down if you are worried about that

Alex Watts :

HMRC just want the money, especially during this time when money is tight - they need to get in every penny

Customer:

That's exactly what I told him. But that obviously doesn't stop him worrying about it.

Alex Watts :

Bearing in mind it has been 6 years I can't see what another few months harm is going to do

Alex Watts :

What he should do is pay what he can.

Alex Watts :

Provide a realistic repayment plan and stick to it. If it is going to be weekly, make sure it is weekly. If it is going to be monthly, then make sure every month

Alex Watts :

But they can't just knock the door down. A commercial business they can - but not private. The sums are not huge

Alex Watts :

I would write to HMRC, make a formal complaint and ask them to review it. Making sure all the time it is being looked at repayments are being made.

Alex Watts :

Can I clarify anything for you about this today please?

Customer:

Which he is more than willing to do and I know he wants to get it sorted and he will stick to whatever he suggests. Will it be worth talking to them again this evening, he may get to speak with someone who is a little more open to his suggestions, or would it be best just to make a formal complaint anyway. Unfortunately I doubt he took a note of the persons name with whom he had the conversation yesterday.

Alex Watts :

I would speak with them this evening and then make a formal complaint if they are not co-operating.

Alex Watts :

Does that help?

Customer:

Yes Thank you. Its re-assuring to know that someone else thinks the same way as I do. I will let you know the outcome tomorrow.

Alex Watts :

Great. Can I clarify anything else for you?

Customer:

No thanks, ***** ***** the moment, unless anything else crops up in their telephone conversation this evening.

Alex Watts :

Great. If I could ask you to rate my answer before you go today, the button should be at the bottom of the screen.

Alex Watts :

If you need more help please click reply

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