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Owing the taxman can you negotiate a payment plan

(7 Posts)
Alfiemoon1 Fri 20-May-16 17:48:20

My sister has got herself in a huge pickle again. To cut a long story short 3 years ago she did a dodgy cash your pension in thing and came out with 14k. Some how the tax man has no found out and says she owes £8k in tax pending investigation so it may go up. That amounts to £700 per month as they want it paid by March. She can't afford that but they won't budge. She has looked to taking out a loan but as she has crap credit can only get a guarantor loan and she's asked me to be the guarantor which due to a long history of bailing her out numerous times I don't want to do. Is there anyway she can negotiate the repayment amount x

IceMaiden73 Sat 21-May-16 07:12:24

Get her to go and see an accountant and see what they suggest

I can't see how she would owe £8k on £14k, so there must be more to it

concertplayer Sun 22-May-16 10:36:28

If she has got monthly payments @£700 a month then she already
has a payment plan!
I agree with above post Basic tax payers pay tax @20% so too much.
Normally you are only supposed to be able to take 25% of your pension
pot tax free so even if the reminder was taxed on this amount she
would need to be a Higher rate tax payer to be taxed so much
See an accountant or IFA asap

LittleG69 Sun 22-May-16 16:50:51

Have a look here www.gov.uk/guidance/pension-schemes-and-unauthorised-payments#pension-liberation

Looks like she's been charged 55% which is the unauthorised payments charge and the unauthorised payments surcharge.

It might be worth her going to citizens advice to see if they can help negotiate a payment plan for her but remember that interest will accrue as well

Alfiemoon1 Sun 22-May-16 18:09:46

She can't afford the £700 pm they are staying she has to pay which is why I asked is there anyway of appealing or negotiating so she can pay an amount she can afford

LittleG69 Sun 22-May-16 22:53:44

How did they come up with £700 a month? I'd suggest that she goes to CAB as soon as she can to seek advice. Does she have anything left of the £14k she could pay them up from? She could probably negotiate much smaller monthly payments if so

LittleG69 Sun 22-May-16 22:53:58

up front

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