Thanks for your question - I am one of the UK tax experts here on Just Answer and am ex HMRC so can advsie you best how to proceed with this.
How much time has lapsed since the initial demands were made - and the issue of the Section 268 (1)(a) notice ?
However you need to contact HMRC immediately and if you are able to make a lump sum payment as a gesture of good will then they are more likely to agree a payment plan with the remaining debt and charges, However please note that interest will continue to accrue to any outstanding amounts.
Can you raise a loan or make a credit card payment - is there equity in the property?
Because any payment you make will work in your favour at this time but I am afraid there is no negotiating the settlement - even if the calculated amounts are not representative of the true position and unless they have over inflated (say based on the taxes due for the years leading up to 2007 then there is no challenging the figures they have used, however if they have over inflated the taxes they state are due from these earlier years then get your accountant to use that as the special relief application as HMRC do have the requirement to justify there figures on a basic level.
If your accountant is not able to manage this for you - then find a specialist accountant that deals with this near to you - but time IS of the essence
Thanks for your response
No they will not amend the figures to actual income but if the amounts they have used are excessive estimations (when earlier years say 2005 and 2006) then they legally can be challenged on this.
No they will not waver the penalties or interest - only if the amount is amended (then it follows suit that these extra charges also are reduced)
You have 21 days from the date of the notice being served before bankruptcy is pursued to recover the debt. So you need to be getting in touch now and see whather they will afford you any extra time
You also need to raise what you can as a payment (as near to 2%% of the total debt owed is the optimum position) and then offer an affordable and sustainable payment plan to clear within optimum 12 month period - and within the next few days
Then you can challenge the amounts and hope there is scope to argue this further, this is why I urge you to seek a specialist accountant to manage this for you, they can use the law to argue the points for you
Let me know if I can assist further - or if you have enough to proceed, it would be appreciated if you could rate me for the level of service I have provided (or click accept)
That should have read 25% of the debt not 2% many apologies
This is why you will need a local accountant - as I have no access to your papers, or to try and establish the right position to take , or the appropriate reasons this should be set aside and this site can only give information or help you make an informed decision within your situation rather than direct representation, which I am sure you can appreciate.
You do not want a solicitor - but an accountant that specialises in HMRC debt and at this stage the threat of insolvency and you advsie that the amounts asked for are wrong and it may be they have been over estimated - which an accountant can help look into for you but , of course it would make sense to talk to HMRC in the meantime as time is of the essence here - but make sure when you speak with them you at least either
1) have an appointment lined up with someone IF this is the route you choose to take. OR if
2)you are to mananage this on your own in which case make sure you have a payment to make and a proposal re future payments
HMRC do not want your home for a quick payment - they just want payment
I am not sure what you mean when you say "what are the options of solicitors who specialise in bankruptcy"
Let you know if you need anything else, but it would be appreciated if you could rate me for the level of service I have provided or click accept.
Thanks for your furtehr question
You cannot change the years on which HMRC have estimated on - as these were created in your absence to file tax returns so I am afrais in themselves you have to accept the figurework used even if they are greater than they should have been due to absences of work etc
BUT if the estimations used (which should have been created using previous tax years as a guide, IF, these are excessive when compared with those previous years - then you have grounds for appeal.
So for example. lets say your earnings for 2005 were £18,000 and for 2006 were £17,500 then you would expect the estimate for 2007 to be around £18,000 but if HMRC then estimated £40,000 - you can see this would be an excessive estimate. Its on that basis you would have grounds for appeal only
You cannot appeal if they estimated £18,000 but for that year you only earned £10,000 as it was then up to you to report the correct position but for them to have estimated based on the example above - would not be excessive compared to earlier years earnings.
I hope that's clearer
It is, but as you had failed to fill the forms in at the appropriate time and still had not three years later AND did not appeal against the estimates at the time, you have now run out of time to appeal them due to that incorrect information.
You can only appeal against any excessive use of the figures, which are measured against previous years returns/assessments which are then deemed to be excessive
I am not sure who told you that appealing against them not using the information available was an option for appeal - did you only have income from employment then ? Tell me what sources of income you had then and now.
I have explained how the special relief works - as above if HMRC have made excessive use of estimations - that at this stage (based on what you have told me is the ONLY route) however ehrn you advsie me more about your sources of income I can advsie further and see if we have any other options you can consider.