Hmrc

[WhatALife]

I received a tax bill of just over £800 earlier in the year from HMRC (sole trader income tax), I didn't have the money available to pay in full so started paying weekly instalments through my banks online banking, about 5 weeks ago I received a reminder showing what's still owed so I sent a letter back saying I'm unable to pay in full but will make a weekly payment with the intention of settling in full within the next few weeks.

 

I continued to make weekly payments and heard nothing more till this morning when I received a letter which says:

 

Dear Mr XXXXXXX

 

Notice warning of legal proceedings

 

Total unpaid amount: £xxx.xx (including any interest due to date)

 

Thank you for your request to pay the above amount by instalments. Unfortunately, from the information provided, I am unable to agree to your payment proposal.

 

The reason for this is I have been unable to contact you by telephone to obtain details of your Income and Expenditure...

 

You must make payment in full by 17 September 2012.

 

If you do not I will start proceedings in the local Sheriff Court. This means that I will apply for a Summary Warrant which will then be passed to the Sheriff Officer for further action. This means I will be able to tell a Sheriff Officer to take any or all of the following actions:

 

• seize and sell your business assets and/or assets kept on your property but not in your house
  
• seize cash or cheques held on your business premises
  
• take money directly from your wages/earnings
  
• take funds held on your behalf by a third party, such as your bank account
  

 

You could face bankruptcy action if the debt remains unpaid. You would have to pay the costs of this action.

 

 

Over the last few weeks I have paid off about 40% of what is owed but can't come up with the total amount between now and 17 September. When I wrote to them I never sent an Income & Expenditure form, I should of but I didn't and kicking myself for it now.

 

My total business assets are valued at about £900 and if they were seized it would leave me with no income as I rely on them, I have a car I use for my business (also worth about £900) which is also relied on for business. The registered address for my business is my home address. I have very low earnings and once I pay council tax, bills, food etc there's usually none or very little left so I can't see what difference HMRC going to court would make, the amount I can afford to pay every week would still be the same.

 

Would it make any difference if I was to write another letter to them offering weekly instalments but include an Income & Expenditure form this time? Would they accept it or just go to court anyway?

[renegadeimp]

Even though its the HMRC, write or email and provide the details they ask. There is no obligation for you to telephone them. As for them saying they will apply for a warrant, i could be wrong, but im pretty certain that you would still be allowed to put your details to the court before any warrant is granted. If not, then the system is very biased in favour of the claimant.