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DH owes money to the taxman but can't pay

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PinkCosmos Fri 30-Jun-23 15:31:26

My DH did not pay his tax bill at the end of January. It is around £10k

He is self employed but didn't put any money to one side for his tax bill. He is hopeless when it comes to money.

He has rung HMRC once and said he couldn't afford to pay the bill.

He has now had a letter from a debt collection agency.

What makes it worse is that he is losing his one and only contract in August. He doesn't have any other work in the pipeline.

He won't ring the debt collectors to try to arrange a payment plan.

He is talking about selling a house that we rent out in order to pay the bill. I am dead set against this as the rent from the house is our pension IYSWIM

I am still working full time but get my state pension in August. I am not planning on giving up work. I can't afford to.

Does anyone know what the process with debt collectors?

Would he be able to pay off a small amount every month as a token gesture until he can get more work and pay off more?

Over the years I have had to keep our finances separate as he is so financially irresponsible. My wage/the rent money pays the bills.

I really resent the fact that my DH goes through money like water and ends up in this position. He mostly spends it on his very expensive hobbies.

Does anyone know what the process with debt collectors?

Would he be able to pay off a small amount every month as a token gesture until he can get more work and pay off more?

Will they come and repossess some of our stuff.

This is causing me sleepless nights. I am fuming at the moment because he is just sticking his head in the sand. I don't know what to do.

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M0nica Fri 30-Jun-23 22:02:34

Katie59 The house belongs to his wife.

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Katie59 Sat 01-Jul-23 07:33:42

M0nica

Katie59 The house belongs to his wife.

The thread does not exactly say that, nor who owns the house they live in. Certainly husband needs to sort his spending out but £10k is not critical if they have 2 houses, there is security for a loan that size.

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Cabbie21 Sat 01-Jul-23 08:14:28

Those debt agencies which are charities may not be able to take on cases of business debt, though obviously business and personal are related when you are self-employed.

It seems to me that a loan on one of the properties will be the answer, but he needs to get proper advice, not just try to deal with HMRC himself.

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Norah Sat 01-Jul-23 10:42:52

Cabbie21

Those debt agencies which are charities may not be able to take on cases of business debt, though obviously business and personal are related when you are self-employed.

It seems to me that a loan on one of the properties will be the answer, but he needs to get proper advice, not just try to deal with HMRC himself.

Reasonable approach.

Also do make sure who is owner to homes.

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biglouis Sun 09-Jul-23 01:03:32

The debt collectors usually require half the debt upfront and then a payment plan. If the debt cannot be paid they will remove assets

This is rubbish! I worked for a debt collection agency in the 1990s and they have very limited powers. They will send out letters designed to scare you. They are infamous for this.

Debt collectors as such cannot take your goods. They can take you to court and the court can then appoint bailiffs who MAY be able to take goods in certain circumstances. Bailiffs are not allowed to break into a domestic premises. However if your OH was self employed and WAH that might affect their powers.

I would strongly advise getting in touch with Stepchange. They are non judgemental and will spell out all the options with the pros and cons. They will, as stated upthread, negotiate with your debtors to arrange a plan by dividing up your "excess" income between them.

The advice to keep your income and property separate from that of your partner is very wise.

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