Getting desperate - HMRC Loan Scheme

**cojak** · 20 March 2023, 11:17

Hi,

First things first. Take a breath, make a cup of tea and come back to the forum in half an hour. That will give the regulars here a chance to read your post and come back with advice.

I need to say that you will need to speak to HMRC at some point, but they will not take your house away from you the moment you get on the phone to them.

**LadyPenelope** · 20 March 2023, 11:18

I am sorry that you have found yourself in this situation. I did similar back in 2004 when I was a newly-minted contractor, and it is sickening that these schemes are still operating. For me, I was able to settle with HMRC but it was costly (obviously) and they screwed up the calculations a couple of times and lost my cheque

causing a great deal of stress.

In your situation I would consider getting professional tax advice on how to handle this. People on here speak highly of Markle Tax, and they have a helpline: https://uk.markel.com/services/tax-and-vat-helpline I'm not affiliated with them in any way.

There is help out there and you can negotiate time to pay. Maybe someone will come along soon who has had more recent experience and can advise.

**DealorNoDeal** · 20 March 2023, 11:27

You might want to consider visiting your Member of Parliament. Part of their remit is to deal with HMRC on behalf of constituents. And they are very good at yanking HMRC's chain and making them behave more reasonably.

A very long payment plan (also known as TTP - Time To Pay) might be an option in your case. This is something your MP could help you with.

**hudson** · 20 March 2023, 12:02

You also need to have HMRCs figures checked, preferably by an accounting or tax investigation professional, with particular focus on the principle debt alleged by HMRC. If that can be lowered then the savings will trickle down to the other things like interest and penalties (if applicable). There are a number of companies that will help you with this. Things might be difficult right now but it will get better once you start dealing with this, there is light at the end of the tunnel. Many of us have been in the same position as you and we are still here moving on with our lives, it is our nature to envisage the worst case scenario in these situations but it usually isn't the case when you reflect on hindsight so dig deep and stay strong.

**GregRickshaw** · 20 March 2023, 12:57

So sorry to hear another in this situation, to see your words makes my heart break.

Breathe and think logically we are all here to help with words and avice, many of us have been through this exact situation, but you need to act now.

First off you need to open a communication with HMRC asap, as cojak quite rightly says HMRC are not going to just take your house, there are many caveats in your favour around home repossession so don't start to think they will.

Talking to HMRC right now is imperative, if you are not up to the task as you sound as though you are not, (I wasn't) then seek out tax specialists who will speak on your behalf but get the dialogue going sooner rather than later.

Your local MP will also ensure you don't lose your home (as long as you are co-operating with HMRC)

So now you know you won't lose your home you need to focus on what to do next.

Get the figures corroborated as HMRC do have a habit of plucking numbers from thin air and loading them in their favour especially the NIC numbers. Oddly though the NIC numbers aren't always brought into the DR/loan schemes so get those checked.

What do you mean by they will take it from your Employer? Is the umbrella company still going? Or do you mean HMRC want to tax you at source, (which isn't a bad option actually)

The tax specialist/yourself and HMRC also need to agree on the figures, so they will need thoroughly checking.

When you say you have appealed what did you mean?

You will have to pay the DR, however between HMRC, you and your tax specialists, you may be able to get rid of the late payments the liabilities and in some cases the interest (this does happen), with your MP and your tax specialists you will almost certainly get a long TTP (Time To Pay). HMRC are very accommodating on these actually just start talking to them, I know it's very very hard

I am surprised at the very aggressive tone they are taking with you too so maybe put a barrier between them and you by seeking out a tax specialist.

I can highly recommend Gilbert Tax

Stay strong and think logically, it's a long tunnel but there is definitely light at the end of it.

**Jumper** · 20 March 2023, 20:42

I just wanted to comment and say you are not alone my friend. There are plenty that have been where you have been and I promise you can get through it, there is light at the end of the tunnel. Many of us have been through it which is evident and some are still going through it. I found it helpful to open up to family and friends which may seem daunting but talking will help.

**passerby** · 20 March 2023, 21:38

Why not name the company? was it a loan scheme?

**k118** · 21 March 2023, 08:53

Thank you all so much, I did make tea and take a breath. I'm no longer a contractor as it was all too much to deal with. I was not equipped with how to deal with finances and HMRC, I didn't have a very hands on accountant.

I called HMRC yesterday morning and advised the numbers don't make any sense as they've added I earned £154k in 2018/19 which is completely inaccurate.

Also that between '15-17 I worked for SP Management Ltd, who I've never heard of.

The advisor asked me to email [email protected] advising them of our conversation, which I've done.

Now I suppose I wait. I appreciate the suggestions for tax specialists but honestly, money is very tight so I'm not sure I can afford any additional help and I don't have anyone I can ask for financial help unfortunately.

**GregRickshaw** · 21 March 2023, 10:04

Originally posted by k118 View Post

Thank you all so much, I did make tea and take a breath. I'm no longer a contractor as it was all too much to deal with. I was not equipped with how to deal with finances and HMRC, I didn't have a very hands on accountant.

I called HMRC yesterday morning and advised the numbers don't make any sense as they've added I earned £154k in 2018/19 which is completely inaccurate.

Also that between '15-17 I worked for SP Management Ltd, who I've never heard of.

The advisor asked me to email [email protected] advising them of our conversation, which I've done.

Now I suppose I wait. I appreciate the suggestions for tax specialists but honestly, money is very tight so I'm not sure I can afford any additional help and I don't have anyone I can ask for financial help unfortunately.

Ok you've made the correct move by getting in contact with them that's a huge step you have taken and I image a big relief.

Tax specialists advisors aren't always as expensive as you think and they can pay for themselves if they can get your late payment charges alone removed.

Anyway keep in touch on here and stay strong so many of us have been through this and come out the other side eventually unscathed. It's only money life if way more important always remember.

Getting desperate - HMRC Loan Scheme