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TonyTax
TonyTax, Tax Consultant
Category: Tax
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Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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Can the inland revenue refuse a payment plan for tax owed and

Customer Question

Can the inland revenue refuse a payment plan for tax owed and if so how long should they give to raise the finance or can they send a bailiff in immediately without a court order
Submitted: 2 years ago.
Category: Tax
Expert:  TonyTax replied 2 years ago.
Hi.

Can you give me a little more information about your situation please, ie amount of tax owed, for which tax year or tax years, your payment offer.
Customer: replied 2 years ago.


The amount outstanding is approx 26000 for the year 2011-2012, the tax return for 12/13 is till outstanding due to my GP partner being away for a long term and unable to contact at present.

Customer: replied 2 years ago.


The amount outstanding is approx 26000 for the year 2011-2012, the tax return for 12/13 is till outstanding due to my GP partner being away for a long term and unable to contact at present. I offered 400 immediately and 1000 per week but they say unacceptable

Expert:  TonyTax replied 2 years ago.
Thanks.

You refer to your GP partner. Are you a partner in a doctor's practice? Is the partnership tax return for 2012/13 outstanding or is it just your personal tax return for 2012/13 that is outstanding? Each partner in a partnership is individually responsible for their own taxes so is the £26,000 owing your tax liability or the combined tax liabilities for you both? Are the tax office chasing you for tax payments on account for 2012/13 as well as the 2011/12 tax? Do you have an accountant?
Customer: replied 2 years ago.


I am a single handed GP but the building is owned by myself and the two other partners who have left and some of the income is for them from the government cost rent scheme and as a result they have also to approve the return from the business. My income is dependent upon the proffits as my new partners are salaried. I have an accountant who says that I should stick to my guns and not take out expensive loans to pay them immediately but I am concerned in case a bailiff turns up as threatened. The tax is outstanding for 11/12 and they have given me 14 days to complete the 12/13 tax return although this will be only a few hundred pounds due to other business losses.

Expert:  TonyTax replied 2 years ago.
Thanks.

Leave this with me while I draft my answer.
Customer: replied 2 years ago.


Ok


Will await your answer, I am on home visits from 12-15 until 2-00 but will rate it a.s.a.p.


Thanks


Mark Northfield

Expert:  TonyTax replied 2 years ago.
Hi again.

HMRC can refuse to accept a payment plan put forward by the taxpayer. I'm surprised that your offer has been turned down, even allowing for the fact that the outstanding tax for 2011/12 should have been paid by 31 January 2013. There seems to be no consistency in HMRC on tax debt collection practices these days. If they accepted your payment offer and you failed to keep up with it, that would be the time to get tougher.

HMRC employ independent debt collection firms to chase up and collect outstanding taxes these days. Given that they get paid by results, it is more difficult to deal with them than an HMRC employee sent out to chase unpaid taxes. The debt collectors cannot enter your home with out a court issued warrant and you are not under any obligation to let them in without one unless you wish to do so.

I don't know what your precise situation is but it doesn't help to ignore communications from the tax office which you must have had since January 2013 but you should start making payments regardless of the fact that HMRC have refused to accept your payment plan. You really need to avoid having your case handed over to a private debt collection contractor.

If it were me and I could raise some finance to settle the tax, I'd do it regardless of what my accountant says. HMRC do not have to give you any more time than they already have since the tax has been outstanding for a long time and they aren't even aware of your 2012/13 situation as you haven't submitted the returns for that year. You should think about doing that as the only partner in place right now and if they need amending, you can do that later.

I hope this helps but let me know if you have any further questions.

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