HMRC Debt: possibilities?

[Bringonthegin]

A friend has just “found out” that he owes HMRC a substantial amount in tax, dating back a number of years. hMRC debt collectors visited his home, but as he wasn’t in, left a letter. He’s rubbish with money, but has tried to turn things around this year, and things were finally looking better: other debts have been paid off, current bills are paid on time etc. My question I suppose is this: has anyone any idea how likely HMRC are to come to some sort of repayment deal with him? He doesn’t own anything expensive enough to be used to pay off the debt (thanks to the historical mess he was in), but he’s now in a position to make regular payments. Any ideas, please? I’ve told him to contact HMRC straight away to talk with them, but just wondered what the options might be?

HMRC has the power to agree a repayment plan with him. He needs to ring them ASAP.

They will normally expect you to make a repayment plan whereby you arrange to clear the debt within one year.

If you can't do this they won't set up a plan and send your case to 'enforcement'. This is when they will look to see if you have anything of value to sell (things in your house, car, or your actual house) take money from your wages or bank account (only in specific circumstances), or can make you bankrupt.

If you are on a low income, don't have a house or any savings or no one to borrow money from and no realistic prospect of repaying the debt, they may not bother proceeding with bankrupting you. If you are lucky.

new that’s not true in my experience.
They let me pay a debt off at a reasonably low monthly rate over 3 years.

It’s not necessarily true with bankruptcy either. They will often go for bankruptcy no matter what the circumstances.