HMRC and late penalty payments. I really need some advice please!

[Milkandlotsofwine]

I'm hoping somebody here can advise me; as I'm in a bit of a state right now.

I have been self-employed for several years; up until May of this year. However I very stupidly (due to clinical depression, and the head in the sand mentality it gave me) did not submit my 2011/2012 and 2013/2014 tax returns. I knew arrears were accruing on these; which I was informed last month by HMRC amounted to just over £1700. I was told by HMRC to submit my tax returns asap; which I did on the 3rd of this month. I was also told at this point that I would be expected to pay all arrears in full within a fortnight. I explained that would be impossible, and they (reluctantly it has to be said) told me that I should be able to set up a repayment plan.

Anway...I completed my returns, and as I have worked very little in the past few years due to my depression; they came to just over £400. A wonderful friend of mine then lent me £1000 in order to pay my tax, and get started on clearing my arrears. Therefore I called today to try and sort something out with them. Unfortunately I was then told that I would be getting an extra £640 added to my arrears in August, and I am expected to pay this on top of what I already owe. I must admit that by this point I was very tearful, so really struggled to take in what the advisor was saying to me. I asked if it would be possible for me to set up a repayment plan, and I was told that if I do so then the minimum they will accept is £100 per month. I am in a job that pays £879 per month after tax, and I explained that £100 was going to leave me utterly destitute (I am struggling enough to survive as it is) However they were adamant that £100 per month is the minimum agreement they will reach with me.

The advisor did say that I could try to appeal, and that they might make an exception to my arrears due to the fact I have had clinical depression the past few years. I am just really worried about what will happen to my arrears in the meantime if I do this? I was told the interest would be frozen, but at this point I honestly don't trust a word they are telling me!

Sorry this post is so long, but I really just don't know what to do next. I am more than willing to pay back what I owe, and in fact paid back £550 of the arrears today with the money my friend lent me. I just cannot afford £100 a month when my wage is so low, and I am so, so scared of what might happen to me.

I'd appeal it tbh. There are tax charities who can help advise you.

I think tax aid is one of them. I really wish you well.

taxaid.org.uk/

Thank you so much for the link Fluffy. I will get in touch with them, and see what they say. Every time I contact HMRC; I get told something different. That's when I actually get through. The holding queues are horrific and my phone is a PAYG!

www.saynoto0870.com/companysearch.php This lists numbers charged at standard landline rates and there's one for HMRC self assessment.

0300 are charged like a landline on a mobile. You can get 30 day contract SIM cards with inclusive minutes.

WRITE TO THEM
and in the mean time pay a little bit each week - even £10 - so that if the buggers do hand your bill to their debt team, each time they write to you their number will be wrong

Explain the situation in writing, including your medical issues. They do have flexibility in their penalty charges. You need to show that you are determined to sort this out.

And, contrary to what you may believe, if you have any reason to have had problems, they will consider waiving the late fees. They are not the ogres some people paint them. Just keep in contact and don't agree to anything you know you cannot achieve. If you default once you have agreed something, then they get ogreish!