This section answers questions which are often put to us at TaxAid.
Review the questions below or use Search to find the information you want
For a fuller explanation of particular aspects of the tax system, see the main sections on this site
Help with your tax | Tax debt | Self assessment | Self employment
Or go to our search (link to search) site using key words to find the information you need.
If you cannot find the answer to your question, why not email it to us?
TAX DEBT
The first group of FAQs below are on tax debt. Subsequent groups cover:
Tax Credits, Self assessement and self employment; TaxAid and its service; Taxpayer rights and HMRC Penalties; Miscellaneous matters; Employee issues
I pay tax under PAYE as an employee or as a pensioner. There has been a mistake with my tax code. HM Revenue and Customs has now sent me a bill for arrears of tax. What can I do?
The main remedy available where there are unexpected arrears of tax at a time when you could reasonably have thought your affairs were in order is Extra Statutory Concession A19. This attached file gives details about how this can work.
(search hints ESC A19, ESCA19, PAYE tax debt, PAYE coding error, P2 notice of coding)
Document: Extra_Statutory_Concession_A19_Final
I am looking for information on Tax Demands. Where can I find it?
Try searching for 'tax bills', if you would like to know about how a tax bill is calculated. (Or look in the Help with your Tax section under How the system works.)
If you are unable to pay the bill, try searching for 'tax debt' - or try the tax debt tab at the top of the page.
I haven't declared all my income. What should I do?
If you have not told HM Revenue and Customs that you are trading, or have not told the Revenue about other untaxed income for a number of years, you can phone the HM Revenue and Customs's confidental Tax and Benefits Helpline on 0845 608 6000. You will also find guidance on the link below.
If you are newly self-employed, please see the self employment section of the site. You have three months from the day you start to tell the Revenue that you are trading. Newly self-employed helpline 0845 915 4515.
For other income you must tell the Revenue by 5 October following the end of the tax year in which you first received income from the new source. (The tax year runs from 6 April in one calendar year to 5 April in the next).
Web Link: undeclared income
I have received a letter from the HM Revenue and Customs saying I owe them tax. I can't pay it. What should I do?
TaxAid has a lot of experience advising people who are in debt to HM Revenue and Customs. Try the Tax Debt section on the link below. This will also help you if you are being threatened with County Court or Magistrates' Court proceedings, distraint or bankruptcy. What seems to be a threatening letter, can be an opportunity to sort things out.
Unexpected tax bills can cause problems. The 'How the tax system works' section under the 'Help with your tax' tab will help you find out why and when tax is due.
The section 'Dealing with the HM Revenue and Customs' under the 'Help with your tax' tab, may also help.
If you still need advice, try Getting Advice - our advice service - under the 'Help with your Tax' tab.
Web Link: Tax Debt
I need advice on tax debt. Where can I find it?
The main tax debt section can be accessed from the link below. See also 'Dealing with the Revenue' under Help with your Tax tab. More in depth guidance is given in the Advisers section.
These sections should help whether the issue is an unexpected tax bill, the result of an enquiry or investigation, or a long running problem that has developed over a number of years.
Web Link: Tax Debt main section
I work for a charity and need help giving advice on tax debt to a client. Where should I go?
In depth tax debt advice can be accessed on the link below. There is also information under the main tax debt tab. The information includes recovery proceedings, negotiations, distraint, county court and magistrates' court proceedings and bankruptcy.
Web Link: Tax debt help for advisers
I want to sort out my tax affairs. How do I start?
Whether the issue is tax bill, tax debt or a refund, you may want to look at the section on Dealing with HM Revenue and Customs on the link below. This section covers contacting HM Revenue and Customs, negotiations, refunds, interest and penalties, complaints, rights and remedies.
Web Link: Dealing with HM Revenue and Customs
Where can I find out about distraint, bankruptcy and court proceedings?
The TaxAid website had a lot of information on these issues. The main debt section has information on County Court Proceedings, Magistrates' Court Proceedings, Distraint and Bankruptcy.
There is also more detailed information in the Tax Advisers section.
So if you have received some court forms, take a look at the link below.
Web Link: Tax debt, and related issues
As an advice worker, I need some in depth help on tax debt, bankruptcy, distraint and court proceedings. How can TaxAid help?
There are two places on the website with information on these subjects. The Tax Debt section (see tab at top of page) covers the area in some depth. If you would like more detail, try the 'Debt Advice for Advisers' link below. This covers all these subjects as well as negotiating with the collector, Insolvency and Recovery Proceedings.
If you need further help, we suggest you phone us. Advice agencies only can phone on 020 7803 4950 during office hours. Or your client could phone our helpline on 0845 120 3779 Monday - Thursday 10am - 12 noon.
Web Link: Tax Debt for Advisers
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