I have just phoned HMRC to make an arrangement to pay for one of my clients. He owes £802 and needs to make 4 payments to settle his account. He has never asked for an arrangement before and the debt has come as a complete shock to him. He has had three jobs in the last 2 years due to redundancies and one of his former employers failed to notify HMRC that he had a Company Car until the year end returns went in the following May. HMRC did nothing about amending his coding notice even then. The debt is the exact amount that the Co Car calculates out at and the poor guy is already worried sick about the debt. He is coming in to the office tomorrow to pay what he thinks will be the first instalment.
I thought this would be quite straightforward but apparently not. I was told my client had to produce proof that he had applied for and been refused a Bank Loan -(are Banks interested in giving loans of less than £1,000)?, provide copies of current account statements which must apparently show an overdraft and provide copies of any other loan statements/credit card statements etc plus provide a detailed schedule of monthly income and expenditure.
This is a young man who is single but fully supports his widowed mother following father's early death some years back. He pays the total mortgage, all of the household overheads, Provides most of the food etc.etc and even supported his younger brother through uni so that e did not suffer from their father's death! His mother has never worked and is old enough not to know where to start even if she could. She has a small pension but that is all. They are too proud to claim benefits
I told all of this to the guy I spoke to and am really shocked at the response I got. Is this normal these days or did I just get a very bloody minded ******* on the phone? It felt like he was reading from a script!. .