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Not Enough Disposable Income to Pay HMRC - What Next?


DK32UK
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Hi Folks

 

HMRC state I owe them an amount from 2008-2009 which only came to my attention on submitting my 2011-2012 self-assessment. In 2008-2009 I was bed bound due to ill health and receiving incapacity benefit and company benefits. HMRC have explained that it was my responsibility to make sure my tax code was correct at that time, so the onus is on me. At that time I was an employee off sick and it didn't occur to me to check.

 

I can't afford to pay the amount. Today I spoke with HMRC and we went over my budget. It calculates that I don't have enough disposable income to make an sort of payment. My case has now been passed on and I'm awaiting further contact as I'm told they want further details. I'm partly on income-related employment and sickness allowance and on a self-employed low income. The representative I spoke with today advised I appeal one last time and explain that I was ill etc. I've refrained from doing that so far as I couldn't see how that would be considered in my appeal, and I really didn't want to pull out the "I'm sick" card.

 

Has anyone else here been in this position before and knows what happens next? Is it likely to be passed on to a debt collector?

 

Thanks

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  • 5 months later...

In August I received another call from HMRC. They went over my budget again, but this time VERY quickly and with pressure. I had nothing to hide so again it turned out that I still had nothing to offer. They asked for a payment right then in order to stop debt collectors getting involved. I couldn't offer, but instead told them that I would be able to offer £10 at the end of September. I was told "No". I didn't hear from debt collectors from the time between the call and the end of September, but I did receive a second penalty notice which I replied to in appeal. Due to a slight change in circumstances I was able to offer £10 at the end of September and the same for October. I haven't received any communication from HMRC telling me "No" again, nor have I heard from a debt collector to date. Everything crossed I will be allowed to continue to pay my £10 without debt collector intervention..

 

I think it helps if you communicate with them, even if you can't afford to offer payment. It could possibly delay debt collector involvement.

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