Advice with tax please

[healingDealingWithTax]

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 don’t 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 account has ignored all my emails.

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

5/6 years of child benefit would be around £6k for one child. I understand interest etc, but surely you can't have £49k of penalties? Have you been given a breakdown of the charges?

@healingDealingWithTax im sorry you’re in this situation. Take a deep breathe and make yourself a cup of tea, I don’t mean that to sound patronising.

you say you owe £55k, that can’t all be from child benefits so I assume there was an issue with your husbands tax records as well? If HMRC are saying it’s correct, have you got a breakdown of their calculations on how they reached that figure?

I don’t have much advice for you but can be here for a hand hold if that helps

How many children have you claimed for?

as you’re both struggling so much mentally, is there anyone who can help you with this? Can you talk to citizens advice? Or get a better accountant who can hold your hand through it? Your post is a bit confused. Clearly the 55000 is not just child benefit. Is your husband self employed? Does he run a business? How has he ended up owing so much in tax?

Thank you all for getting in contact. Yes that’s right we owe £6000 for child benefit of just one child. Rest is penalties and apparently my husband underpaid tax by £19k one year which is not correct. Even advisor said not correct and to write a letter which we did but there was just a response asking for 55k again

I think you need to find a new accountant.
Your post is very confusing

• Child benefit should be in the NINO for whichever parent is working least so the NIC credit goes to them. Whether or not there is any child benefit money phases out if either parent makes more than £50k, this also triggers the need for an SA from the earner(s) making more than £50k
• I don’t know why you keep referring to a Self Assessment as “our self assessment” as a tax return is individual. There is no such thing as a joint/our SA. It is either your SA or your DH’s SA. If you both meet any of the thresholds, then there would be an SA by each of you, for a total of two SAs per tax year.

• The threshold isn’t £50k of any income…it is more complex and there are different thresholds upon earned income, whether self-employed, a partner in a business, foreign income, dividend income, capital gains etc.

All of the above means you need a real accountant, not your mum’s friend.

No husband works and is taxed via PAYE. But as we claimed child benefit you must do a self assessment each year which I didn’t know about so couldn’t tell him. I applied thinking everyone gets it. Was actually told by health visitor and children centre. They have me a leaflet on it!

No, it’s not claiming child benefit alone that triggers requirement for an SA. It is only if you claim child benefit and have to also pay the high income charge:

https://www.gov.uk/child-benefit-tax-charge

And
https://www.gov.uk/self-assessment-tax-returns/who-must-send-a-tax-return

Who must send a tax returnYou must send a tax return if, in the last tax year (6 April to 5 April), any of the following applied:

• you were self-employed as a ‘sole trader’ and earned more than £1,000 (before taking off anything you can claim tax relief on)
• you were a partner in a business partnership
• you had a total taxable income of more than £100,000
• you had to pay Capital Gains Tax when you sold or ‘disposed of’ something that increased in value
• you had to pay the High Income Child Benefit Charge

You may also need to send a tax return if you have any untaxed income, such as:

• some COVID-19 grant or support payments
• money from renting out a property
• tips and commission
• income from savings, investments and dividends
• foreign income

Everyone gets the NI credits of child benefit- it’s for whichever parent (usually the mum) that pauses/stops working to care for the infant/child up until age 12. The child benefit is two benefits really- the NICs for all carers of young children, plus money for those also on a low income.

Does your DH earn more than £100k? If so he starts to lose the personal allowance and also needs to do a tax return. If he has benefits like a company car, health insurance, that might also increase the amount of tax he owes.

If this has led to an underpayment of £19k, along with the CB issue and penalties over multiple tax years I can see how it's grown to so much unfortunately.

If phoning HMRC isn't working I would write to them to complain and also mention the health issues you and DH have and how you've been let down by your accountant and say you are not ignoring the issue but need help and time dealing with it.

Have a look at this and follow the guidance. Ir also looks like he can authorise you to talk to them on his behalf.

https://www.gov.uk/complain-about-hmrc

Also definitely get a new accountant. Have a look round for 2 or 3 local ones, check reviews and ask for an initial consultation, which they will probably do for free.

Hopefully you'll find one who can help you with this. I'd complain to the other one and their professional body too. They should at least refund the money you've paid for no advice.