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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

8k possible HMRC bill - help!

93 replies

mummyrabbitpeppapig · 04/07/2017 07:33

My oh is employed and has to drive in excess of 80 miles mon - fri to commute to his place of work ( he's in IT so has to travel out to fix customer problems in addition). He has a company car for work.
It's just come to light that the last accountant was fiddling the books to the tune of thousands so hes gone. The new one has discovered that my oh should have been paying his own company car tax and could have to pay HMRC 8k in backdated tax. He's shick

OP posts:
Original poster
mummyrabbitpeppapig · 04/07/2017 07:34

Sorry posted too soon . He's visibly worried about this as will have to get yet another loan out to pay this. Any advice welcome. He's so stressed! Help!

OP posts:
Ilovecoleslaw · 04/07/2017 07:35

What is your aibu?
I think this is better suited for a different section

Original poster
mummyrabbitpeppapig · 04/07/2017 07:37

Aibu in saying he shouldn't have to pay this -

OP posts:
londonrach · 04/07/2017 07:39

Phone hmrc and talk to them. Ive always found they very helpful. Wonder if they do a repayment plan

NeverTwerkNaked · 04/07/2017 07:39

can he come to an arrangement to pay it back in instalments with HMRC? I would have thought the new accountant could advise on that? Or as it was a work error surely work should do something to ease the pain (interest free loan or somilar?)
I'd ask MN to move this thread to the employment board maybe?

Squirmy65ghyg · 04/07/2017 07:39

Be very honest with hmrc. Ask for a payment plan.

He really should have known he should have been paying company car tax.

Birdsgottaf1y · 04/07/2017 07:40

My Sister-In-Law was landed with a large tax bill, because her ex-husband had stolen from her business and not paid the tax.

She could prove that it wasn't a case of her just not paying and they allowed an arrangement to be made.

The arrangement has to be kept to, though.

billabye · 04/07/2017 07:40

Who do you think should pay it?

I think HMRC will be able to offer some kind of payment plan whereby they will deduct money over the next year. I'm no expert though.

OllyBJolly · 04/07/2017 07:40

If he's liable for the tax then he has to pay it. However, HMRC would deduct it over time so no need for a loan.

I don't understand what's happened. If he's employed then the company car tax should be deducted by PAYE.

Who did the accountant work for - your DH's employer?

Cocklodger · 04/07/2017 07:41

Er yes YABU to think he shouldn't pay this.
It's not his fault it happened but he is liable fair and square.
Next,
Damage control. If you're issues with a fine or bill to pay be honest about the situation with HMRC and offer a payment of zx per month (what you can afford) to pay off the bill

scottishdiem · 04/07/2017 07:42

So does he use the car for personal use?

Cailleach666 · 04/07/2017 07:42

A similar thing happened to my OH.

Company accountant made the mistake, but OH had to pay back the money- not as much though it was only 2-3K.

He contacted HMRC and they made a tax adjustment over two years and took the money back that way.

ShotsFired · 04/07/2017 07:43

I think the general principle in HMRC's eyes is that every individual is ultimately responsible for the accuracy of their own tax affairs, whether they are PAYE, do their taxes in house or farm them out to an accountant.

Professional advisers do usually have insurance which would cover subsequent losses arising from their errors (so your husband would claim from them to recover the losses), but of course you have a bent accountant Sad

But basically, yes, if tax is due, your husband has to pay it, sorry. It is his problem to then recoup that from any third party.

Your main priority is to be proactive and honest with HMRC. If you go to them and work with them to repay this over time, that is FAR FAR better then them coming to you. They really want the won't pays, not the can't pays.

Ilovecoleslaw · 04/07/2017 07:43

Call HMRC and check he does actually owe it. Normally it's deducted as part of PAYE.
I knew of someone who owed thousands in tax and was given 3 months to pay it all back, however that was clear fraud and the whole company was convicted for tax evasion. I'm sure they'll work out a plan for it to be paid back, which obviously it should be if it is owed

caffeinestream · 04/07/2017 07:44

Of course he should have to pay it - you can't not pay money you owe just because you didn't know you owed it.

Ring HMRC and explain. You should be able to set up a payment plan but you'll need to stick to it religiously. Missing payments/refusing to pay will land him in deep shit.

Cailleach666 · 04/07/2017 07:44

He will have to pay it OP.

Ultimately it's his responsibility to pay his own tax, even if the accountant neglected to deduct it your OH is still responsible.

LurkingQuietly · 04/07/2017 07:45

Um, I'm pretty sure it's down to the individual to notify HMRC they've got a company car. Didn't he notice he wasn't paying anywhere near enough tax, or that it wasn't showing on his P11D annually? I think the accountant is a bit of a red herring here. Definitely contact HMRC though, they can and will help.

goodnessidontknow · 04/07/2017 07:47

If your husband is employed the company car tax should have been processed via his payroll so it sounds like you are still unclear as to the position. There have been changes to what is allowed as travel expenses recently so without in-depth information it's impossible to know the correct treatment.
At the end of the day, your husband will have approved the tax returns as accurate so if there has been a mistake he will be liable. The only thing that may help is to appeal any penalties as they can often be reduced for a genuine error.
Just make sure the new accountant is reputable so you're not jumping out of the frying pan into the fire!

CadnoDrwg · 04/07/2017 07:48

My company messed up my company car and I ended up being in HMRC's bad books. I thought I was on the right tax code.

When I spoke with then they were really understanding. Apparently it's a very common issue and they agreed to an instalment plan to clear it.

It doesn't feel fair when you think you've done everything properly but legally I was responsible for the money.

Newbie557774 · 04/07/2017 07:51

Yes, you will have to pay up.

HMRC should offer you an interest free plan over 36 months maximum.

Expect repayments will be about £230 per month ballpark for an £8k underpayment.

It's done via Direct Debit. DO NOT get a loan, there is no need.

It's a crap situation to be in, my sympathies.

Cailleach666 · 04/07/2017 07:51

I agree with the others.

As soon as OH realised what had happened he contacted HMRC immediately.
They were great, did all the calculations for him, and over a few weeks that payment plan was arranged.
It's best to be proactive when a mistake like this has been made, rather than trying to ignore it.

LIZS · 04/07/2017 07:54

Yabu . It is his responsibility to ensure his tax code is correct, not the company's. Does his p60 show the correct figures, does he self assess each year?

TheGoblinKing · 04/07/2017 07:54

Definitely get the new accountant to check things properly - but also contact HMRC and explain the situation. They're actually pretty nice if you're polite - they know people get into situations. I've dealt with them a few times and they've honestly been great. They'll be able to work out a plan with you/him, to repay gradually. It might be worth having a list of income/outgoings when you call too.

ChicRock · 04/07/2017 07:55

Ignorance is no defence - if it was, everyone would be trying it on.

HMRC are actually quite reasonable under circumstances like this but yes your DP will be paying his bill.

Then he needs to get clued up on what he should be paying and keep an eye on it in future.

Snap8TheCat · 04/07/2017 07:57

Everyone is responsible for their own tax affairs. If you choose to delegate that job to someone else then that's fine but the buck still stops with you.