Apologies, I don't think i made clear my issue. I had an investigation carried out and because of undisclosed income over 10 years I owe around £70K in unpaid tax and on top will be penalties. I cannot afford to pay it all at once. Do you think HMRC will be open to a payment plan over a few years?
He really doesn't want to file for bankruptcy at all. He would prefer to agree to pay it all over 4 years. Do you think they would be open to such things? He has a house he can sell but would ideally not want to do that. He read online that HMRC usually want repayment within a year but he could not afford that without selling the house. Do HMRC have flexibility these days to do payment plans for a duration of around 4 years? For example he can offer a third of what is owed up front and then pay the remainder of a 4 year period.
Have you come across this kind of scenario before where the amount owed is circa £100K including penalties? If so did HMRC show flexibility back then and agree a payment plan?
Do HMRC enforce that you well your house or is that a last resort?
He has two properties, one owned with partner and another jointly owned with a friend. I would hope HMRC therefore realise that it is best to negotiate the settlement over a number of years. He also has a mental health issue as suffers from panic attacks and anxiety and has been on medication to control it for 18 years so evidence of the mental health issue is there. I think I read that he therefore has to be treated sensitively which in practical terms means being negotiated with using least pressure possible. Is that correct?
Thanks for that.