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Original poster

Huge tax bill

119 replies

lolacoxox · 28/01/2025 19:46

In need of some advice please - my boyfriend has his own company and has had it for a few years. He works alone so no team. He has never payed tax and has always said he would sort it so believed him and stupidly asked no questions.

We own a house together and have a child on the way.

He has now got an accountant to sort his taxes out for him and it turns out he owns £40,000!!!

I am beside myself with worry. Cannot pay this and don't know our options. I'm so mad. Any advice welcome please.

OP posts:
LegoTherapy · 28/01/2025 19:57

I'm sorry you're in this situation. How could he not know that he needs to file a tax return each year?! Isn't there a penalty for not doing so? How tied are you to him financially?

Original poster
lolacoxox · 28/01/2025 19:59

Thanks for your reply. In all honesty, I think he has been burying his head in the sand and didn't know what he was doing and kept leaving it and leaving it...

Pretty tied financially. I'm not at all clued up on this stuff and am worried it's a pay all situation or something bad happens if not!

OP posts:
Jmaho · 28/01/2025 19:59

How did you manage to get a mortgage?

Uta100 · 28/01/2025 20:00

Well there’s no getting out of paying the tax. You can sometimes arrange a payment plan with HMRC but there are no guarantees they’ll let you. Can either of you earn extra? Take another job? Loan from family?

Original poster
lolacoxox · 28/01/2025 20:02

LegoTherapy · 28/01/2025 19:58

Thank you, that gives me an idea on next steps

OP posts:
sometimesmovingforwards · 28/01/2025 20:02

Well they do say there’s one born every minute…
HMRC do love a fine and interest calculation on top of what they’re owed.

Original poster
lolacoxox · 28/01/2025 20:03

Jmaho · 28/01/2025 19:59

How did you manage to get a mortgage?

Was years ago now and had no issue at the time (before this stuff started really) - he used to have perm job years ago.

OP posts:
Original poster
lolacoxox · 28/01/2025 20:04

Uta100 · 28/01/2025 20:00

Well there’s no getting out of paying the tax. You can sometimes arrange a payment plan with HMRC but there are no guarantees they’ll let you. Can either of you earn extra? Take another job? Loan from family?

Thank you. Gives us something to think about. Don't think family will be able to help and already working so many hours so another job isn't possible... will give it some thought. It's just such a lot of money.

OP posts:
Littletreefrog · 28/01/2025 20:04

He needs to get a payment plan sorted ASAP as they will be charging interest daily.

Original poster
lolacoxox · 28/01/2025 20:05

sometimesmovingforwards · 28/01/2025 20:02

Well they do say there’s one born every minute…
HMRC do love a fine and interest calculation on top of what they’re owed.

Noted - thank you

OP posts:
Original poster
lolacoxox · 28/01/2025 20:05

Littletreefrog · 28/01/2025 20:04

He needs to get a payment plan sorted ASAP as they will be charging interest daily.

Ok thank you. No more burying his head in the sand.

OP posts:
SugarandSpiceandAllThingsNaice · 28/01/2025 20:06

Is he a sole trader where the tax owed can be claimed from his personal assets, or is the company an Ltd where the tax owed can only be claimed from company assets?

I think this is the most important piece of information.

Isthiscorrect · 28/01/2025 20:10

Has he really never ever put any money aside for when he got around to sorting out his tax affairs?
If he doesn't have any money because he has no savings and he can't afford to pay the tax his business isn't really going so well is it? Maybe time for a rethink? Sorry.

BESTAUNTB · 28/01/2025 20:10

He can call HMRC on 0300 200 3820 to request a plan. The best time to call is 8am when the line is quieter.

They will ask him for details of his income and expenditure and how much he can pay right now. He’ll need to agree to make an initial payment.

DoYouReally · 28/01/2025 20:25

He needs to look at his business and it's long term viability. If he doesn't have the €40k to hand, it isn't really sustainable as it doesn't generate enough profit to cover all debt, which includes taxes.

He also needs to check his pricing and immediately increase it if he's not charging market rate.

Does he have any used equipment or a van for work? Can he trade down to a cheaper model etc?

helloblossom · 28/01/2025 20:29

I think Sugarandspice is right unfortunately. If he's self employed they could look to recoup some money by making you sell personal assets.

I kind of get the not knowing how to do a tax return and putting it off until the very last minute but the number one rule of being self employed or having your own business is to put aside a portion of every single £ that comes in for your tax.

If he's planning to continue the business then make sure he sets up a separate account just for this asap. Like tomorrow. He has to pretend that it's taken at source just like PAYE.

Ttcpph · 28/01/2025 20:32

Is this a corporation tax bill for a Ltd co, or a self assessment personal tax bill?

self assessment personal tax he should be able to set up a payment plan.

Catapultaway · 28/01/2025 20:33

lolacoxox · 28/01/2025 20:05

Ok thank you. No more burying his head in the sand.

Show quote history

He has a company, the company will have limited liability. I would seek proper advice from a good accountant who has experience in this area... there is often a way out of it.

harriethoyle · 28/01/2025 20:36

HMRC are pretty good at arranging payment plans in my past experience @lolacoxox but he must be proactive or they get very cross…

Crackednuts · 28/01/2025 20:37

lolacoxox · 28/01/2025 19:46

In need of some advice please - my boyfriend has his own company and has had it for a few years. He works alone so no team. He has never payed tax and has always said he would sort it so believed him and stupidly asked no questions.

We own a house together and have a child on the way.

He has now got an accountant to sort his taxes out for him and it turns out he owns £40,000!!!

I am beside myself with worry. Cannot pay this and don't know our options. I'm so mad. Any advice welcome please.

Find another accountant there is no way he owes that much.

Crackednuts · 28/01/2025 20:39

How many years did he not file for tax?

Ttcpph · 28/01/2025 20:41

Crackednuts · 28/01/2025 20:37

Find another accountant there is no way he owes that much.

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🤔how can you possibly know that when we don't have any details of income and how many years are outstanding?! Stupid contribution.

harriethoyle · 28/01/2025 20:43

Crackednuts · 28/01/2025 20:37

Find another accountant there is no way he owes that much.

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It’s entirely feasible. 10k a year is not that large a tax bill for a company

Sherararara · 28/01/2025 20:44

Crackednuts · 28/01/2025 20:37

Find another accountant there is no way he owes that much.

Show quote history

And
how on earth can you possibly know that?