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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Advice with dealing with Tax

8 replies

healingDealingWithTax · 02/04/2024 22:32

Please can I have some advice. Just for context I am really struggling mentally even before all this issue and I cannot cope. Some advice rather than making me feel even worse would be really appreciated.

We owe inland revenue over 55 thousand pounds. I have no idea how to deal with it. In 2015 I applied for child benefit which I thought everyone gets. As husband was higher earner it was done through his national insurance. What I didn’t realise at the time was any income over 50k must do a self assessment every year. We didn’t and got no letters at all. Sometime on 2020/2021 we got letters backdating all the years we didn’t do SA. We did the SA and stopped child benefit. Everytime we talk to the tax people we get different advice. Last conversation was that there was a mistake in our SA that’s why there’s a high figure showing. We filled out the paperwork etc. and write a letter and we’re told to wait 6 weeks. We just got a letter now saying we do owe that amount and there was no mistake.

our accountant (well my mums accountant) has been crap. He’s been dealing since 1.5 years and we keep paying him but he’s gone nothing. We can’t sleep and are stressed out. I’m going to call tax people tomorrow 8am but I know they will not speak to me. My husband is going through deep depression and won’t get up early enough to be first in line to talk to them. I’m so lost I don’t know what to do. My accountant has ignored all my emails.

Everyday we are being charged penalty charges which are half of the amount we owe.

OP posts:
EIIaM · 02/04/2024 22:35

How much have they been paying you a month? How much over £50k does he earn?

healingDealingWithTax · 02/04/2024 22:40

they paid me 80 something pounds every month. Just the child benefit is £6000 but it’s all the penalties which have made the amount higher. Plus one year he was apparently under charged tax by 19k which even the accountant said is not right and cannot make any sense.

problem is we know it’s not right but there is no one to talk to. Even the inland revenue advisor said it’s not correct but we should still set up a payment plan which accounts t said we definitely should not do.

OP posts:
EIIaM · 02/04/2024 22:44

I'd be absolutely setting up a payment plan as all you are doing is letting the debt spiral while you're not paying it.

It's crazy. £80 per month for 9 years is under £9k, how on earth has it become £50k it can't be right!

SkyBloo · 02/04/2024 22:49

It sounds like there's far more here than you understand

The interest and penalty regime in the uk doesn't usually get too onerous for mistakes they consider careless rather than filing inaccurate returns on purpose (to dodge tax).

Is your DH self employed? I thought it was only over £100k SA is required (higher more recently) unless you've got other sources of income.

32softfeet · 02/04/2024 22:50

Get some proper advice from someone qualified in tax, not just a standard accountant who may or may not have much tax experience.

SkyBloo · 02/04/2024 22:50

Ps ditch your useless accountant. Get all your financial info together and find a specific chartered tax advisor who can handle this.

TimeForTeaAndG · 02/04/2024 22:52

SkyBloo · 02/04/2024 22:49

It sounds like there's far more here than you understand

The interest and penalty regime in the uk doesn't usually get too onerous for mistakes they consider careless rather than filing inaccurate returns on purpose (to dodge tax).

Is your DH self employed? I thought it was only over £100k SA is required (higher more recently) unless you've got other sources of income.

When you earn over 50k the amount to be paid back in tax via self-assessment starts, at 100k you pay back all the child benefit for that year. So it's a gradual pay back rather than suddenly getting nothing.

DaisyHaites · 02/04/2024 22:53

You need a proper tax accountant, as what you’re saying doesn’t stack up - so either HMRC have some wrong information or you have misunderstood.

Charities like TaxAid might be able to help but I don’t know if they have an income cut off.

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