time to pay arrangements

In December I had a client who had a tax liability of just over £2,000 arise on some one-off income, with the tax being due as a balancing payment on 31 January 2014.  She also has employment income and dividends.  It was envisaged that the tax liability arising be collected via her tax code and therefore spread over 12 months.


HMRC have advised that because her tax liability would more than double the tax collected via PAYE they were unable to collect via her tax code and therefore the full amount was payable on 31 January.  They also advised that she should contact HMRC and do a time to pay arrangement spreading the tax liability over 12 months which would have the same result as if it were collected via Paye, albeit with interest on.


When my client contacted HMRC she was told that she could not do a time to pay arrangement as she had assets and should sell her house to meet the liability.


I ended up, understandably, with a distraught client on the phone, a week before Christmas, with no idea where to turn, other than payday loan companies.


With my intervention HMRC have now agreed to allow her 6 months to pay.

Has anyone else had experience of a heavy handed approach to small debts by HMRC, whilst other clients with larger older debts get ignored?

  • Hmrc will not listen to the little man i,ve tried to sort my tax problem on the phone & set up an arrangement to be told point card *** no & verbally threatened they should have the common decency to listen to people who genuinely want to pay
  • I personally worked with clients and with large debts, which pozamovlyaly I have a lot of articles on this resource http://clc.am/iMgCNw, but did not pay, but the problem was solved, so do not worry so much.

  • This is so unfair. I feel bad for your client! That, too, right before Christmas must have been pretty harsh on her. Good that you intervened and helped out your client in the best way possible! I guess one of my colleagues at work has faced such an issue. I don't know the details of it but it was something similar to this.