My boyfriend is in debt with HM Revenue

[Rebuild]

My boyfriend lives with me. I've just recently found out that he owes £16,000 to HM revenue as he is self employed. He has given his works place as his address and HM customs has gone to his work place to seize goods. What I'd like to know is can they come to my house and take my things as every thing is in my name and not his

[Hopefullyrecovering]

Oh blimey - this is a mess.

The simple answer is no, they can't come and take your property.

But you need to think about the long-term consequences for you about living with someone financially feckless. There are potentially accidental short-term consequences (ie you being turned down for the odd credit-card) but there are huge issues that can arise from relationships where one partner is feckless with money. Huge. You need to think about that, particularly where children get involved.

[expatinscotland]

No, they can't. But listen to Hopefully. This is BAD.

[savoycabbage]

Hopefully is right.

[LittleSugaPlum]

From now on keep all reciepts for anything you buy for the house.

Is his name on the tenancy?

I ve never known someone to be refused credit because they live with some who is not good financially. The credit check is done on the individual person wanting the credit, not on the house or anyone who lives there. This applies even when your married.

[Bossybritches22]

He could have made arrangements to pay the debt over a series of agreed payments. They would always rather have some money back than none, he has clearly been ignoring the situation & this is the final step. They do a series of warning letters before it gets to seizure so he's been bloody stupid.

Get the 2 major dreit reference agencies Equifax & Experion to put a letter of dissasociation form him on your address that way your credit line will be totally seperate on future searches.

I would seriously think about your future together as if he owes the taxman he may well have huge other debts, please don't say you have been paying debts off for him or loaning him money?

[fergoose]

I have been in exactly your situation - and no they can't take your possessions. they can take his, but not yours.

I am surprised they are pursuing him, I guess if they know he has assets they will try and seize them. I have heard of people having a bill of up to £50K written off if they have no means of paying. As far as I understand it anything over £50k can mean court action.

[fergoose]

And you say he gave his workplace as his address, as in home address?

I agree with others, this could be tip of the iceberg stuff - what other debts does he have, who else has he lied to, has he lied to you, is he reckless with money, etc.

I lived in terror for many years regarding his debts (plus many other issues) - the relief of no longer living with this hanging over my head is absolutely immense. Do not make allowances for him. And if he can lie to HMRC then I bet he has lied to you - sorry.

[Rebuild]

Thank you for your reply I feel much better. Well every thing is in my name the mortgage and all the bills. I found his letter by mistake as I was tidying up this morning. Yes I must be stupid as all his letters go to the post office in box. The only thing I can do know is to give him an ultimate um for me to help him by getting an accountant and for his wages to be paid directly into my account so that I can pay his bills. But would that affect me being in direct contact with his finances.

[Bossybritches22]

Noooo ... don't get involved with helping him out, he has to sort this himself.

Why should you pay his bills? Does he contribute to the household at all financially?

[Hopefullyrecovering]

The problem with the taking control solution, is that (a) it means he is not taking control and (b) you might end up taking responsibility, because responsibility comes with control.

For example, say you got an accountant (which doubtless you will pay for) and say the accountant reaches a settlement with HMRC that the overdue tax can be paid in instalments. Say then that your boyfriend explains that he cannot repay the amounts in the time given. So you start helping him out with payments here and payments there and before you know it, the debt is a shared problem that you've taken responsibility for ...

[Bossybritches22]

....and if you had not found the letter was he just going to ignore it & not tell you anything ?

[LittleSugaPlum]

My uncle owed £25,000 to the tax man when he was self employed and as it was left and left and eventually the tax man wrote off the debt!

I dont know how he managed to get them to do that, maybe they could see he wasnt earning enough to pay it back? I have no idea.

How long has he known about this debt?

Have a good chat with him and ask him if theres any other debt he owes, and if there is, now is the time to tell you.

I wouldnt judge him on being financially crap, he may not have been brought up about how to manage finances etc, and may just be un educated in that area.

[fergoose]

I agree - his mess he must sort it out. And I totally disagree with Sugaplum, a debt of that amount is not an oversight or a mistake, in my experience it is generally someone who has not told HMRC they are self employed and have run up a huge debt by sticking their head in the sand or by hoping they can get away with it.

Apparently taxi drivers and fishermen are 2 of the worst culprits for it. And then they get the debt written off, and become 'compliant' in the future and get away with it.

[Rebuild]

I've taken on board your messages and I will defanatley get in touch with equifax. When I said sort the debt out I meant for him to give me the money and I would know that his tax was being paid. And yes he does contribute to the house hold bills food etc but not my mortgage. You are also right by saying what other debts does he have. Ok I need to sort this mess out xxx

[fergoose]

no he needs to sort this mess out - not you!

[Trickle]

I wouldn't listen to anyone saying they write off debt, they may have done in the past but they don't anymore. DH was self-employed 7 years ago for 3 months, it didn't work out. They have decided they have no record of the tax returns he sent back or his PAYE income for 2008/09. They sent all the paperwork to our old address (because we didn't know we had to inform two separate departments, tax AND NI contributions) They are pursuing him for £700 - this includes both class 2 and class 3 supposedly voluntry contributions - we are on income based benefit and there is no way this is going to be written off.

If you have anything that links you financially it can effect your credit score - something like a joint bank account. They cannot however take your things as it is his debt not yours.

[fergoose]

They do write off debt, i know someone who had £40k written off a couple of years ago, and another who had just under £50K written off, not once but twice. It does happen, not often maybe, but it certainly does.

[Hopefullyrecovering]

HMRC can and do write off bad debts - see article here

But the point to make is that it is very rare and only in cases where they have to as a matter of law (if the debt has become time-barred) or if commercially it makes sense to write off the bad debt. It is very rare that they write debt off, and usually there is a legal reason rather than a commercial reason. HMRC have forced businesses into liquidation rather than write off debts.

So I would think it is extremely unlikely that HMRC would write off your boyfriend's debts. Not impossible, of course, just extremely unlikely

[fergoose]

My ex had his huge debt written off, and there was no matter of law about it. He told them he had no money or assets - and they dropped the debt. And I know others who have had larger debts written off - if them taking you to court won't produce any money they will not do it. why would they pursue someone when there is no money to be got?

[Hopefullyrecovering]

It really is not as simple as that fergoose.

HMRC will prosecute so as not to make non-payment of tax the easy option. It's the sort of crime that does not end up in a prison term, but it can and often does end in bankruptcy. Here's a useful site

[Trickle]

My point is they have written off debts in the past but have been told to take a firmer stance now. If they won't write off a debt that a man who never earn't any money while self employed who is now on carers allowance can't prove he doesn't owe, and they are forcing him to pay voluntary contributions too then it is highly unlikely they will write off the debt of someone who is actually earning money and just mismanaged his money.

[fergoose]

Well - I do have experience of this, and what I have written did actually happen to my ex. It really was that simple. You don't believe me obviously!?

[Rebuild]

Hi I'm taking all your comments seriously as I'm frightened of the consequences. Hopefullyrecovering I read the link and yes it is serious. Fergoose I do believe you as they treat each individual separately and maybe because your ex owed a lot of money which would have beeen harder to pay back. Trickle your absolutely right he is still working in a good job self employed and earning decent money I think although I don't know what he earns.

[fergoose]

I think the thing is with me it wasn't just the debt which got me, it was the lying, the living in abject fear of the postman. He didn't care or worry about the debt, it scared me half to death and I lived in complete and utter fear of it. And later on I found lots of other lies and secrets. I would just warn you if this is no big deal to him what else is he lying about or concealing from you.

I wish I had opened my eyes sooner and kicked him out back then rather than 'justifying' his behaviour and his debts at the time.

[Bossybritches22]

Morning Rebuild have you had a chance to ask him for clarification yet?