HMRC Debt collectors

HMRC Debt collectors

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I have a client who recently went through an inquiry and had the last 6 years restated.

He has paid close to £23,000 extra tax already but still owes £10,000 made up of £2,500 tax and £7,500 fine 

He has asked HMRC for a payment plan but they have refused saying he owes "too much" and they will pass to debt collectors.

Debt collectors rang him today and again he asked for a payment plan and again was refused because he "owed too much". They told him that their next step will be to send in the bailiffs and maybe they will give him a payment plan!!

Never heard anything so ridiculous when I have clients who a have payment plan for tax owing of over £50k.

My client is paying an amount each week anyway to get this debt down and paid £1,800 just a few days ago.

How best to deal with HMRC now? any advice please.

HMRC have refused to talk to me as they have passed it on to debt collectors, debt collectors refused to talk to me because it is now a personal matter??

Replies (7)

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By loud.speaker
06th Oct 2015 10:30

LTD or self-employed?

Is your client LTD or self-employed?

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By jaffe123
06th Oct 2015 10:36

He is self employed.

Recommended he goes Ltd but refused

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By brian-scholar
06th Oct 2015 10:59

Payment plan

I don't know if this still works but depending on the debt and what they can afford, I tell clients to spread payments over a number of months so that if debt collectors do call and insist on x£ You can tell them that is not what you owe and by the time HMRC tells debt collectors of the new amount that won't be correct either. Mind you a better alternative I think is not to contact HMRC but just to pay the outstanding debt over a reasonable number of months and I think usually as they can see the debt being paid they don't go to the expense and trouble of putting it out to debt collectors.Mind you it has been quite a long time since I have had to suggest to a client this course of action and things may be different now.

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By Justin Bryant
06th Oct 2015 13:16

HMRC

Cannot enforce the debt without going to court e.g. by issuing a Statutory Demand for the debt If taxpayer turns up at court and offers to pay over 12 months that usually works with the judge (especially if he has written evidence of such payment offers to HMRC).

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By ksagroup
07th Oct 2015 11:46

might have to go into an IVA

HMRC can bailiff him but if there are no goods worth taking then that won't get then very far.

http://www.soletraderrescue.co.uk/options/individual-voluntary-arrangeme...

 

Enforcement are tasked with collecting 100% of the debt and they are being aggressive at this stage.  An IVA could be considered as long as he has some regular income that he can pay into it.

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By cooperacc
08th Oct 2015 17:55

Pay what he can

I have had many situations with the new 'field officers' they have no business sense at all and recently I've liquidated a company for £12.000 PAYE debt that started at £26,000 and he was on a payment plan that he couldn't continue with due to downturn. HMRC were not coming up with any options to minimise payments so they could pay over 6 months and insisted it still be paid subject to the plan even though we rang in advance warning them. I now advise to pay what you can as often as you can as by the time they get to chase him the figure will be incorrect as Brian said. I still find if payments are being made they don't chase them as long as debt is decreasing. But I find every case is handled totally different and no continuity at all. Unfortunately you will find you can't speak the debt collector as they don't take into account the 64-8

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By jaffe123
09th Oct 2015 11:31

Thanks for the replies

My client is now paying each week and will no longer contact HMRC.

Will also go Ltd so he won't have to pay the full payments on account next year.

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