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.