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Careers Allowance and old unpayed tax bill.

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1vincent

Member
Hello.
My cousin is looking after his dad who has Parkinson's and early Dementia.

His dad's 80 odd and gets Attendance Allowance higher rate and his PN told him that his son can claim Carets Allowance.

My cousin is 60 and his partner is also 60 and she gets PIP.

15 years ago he and his wife split up and settled the mortgage and he was self-employed but had a £7000 self assessment tax bill that he never bothered about.

He left the country and live aboard more or less since then as he wanted a clean break he has been back for about 18 months and was doing cash in hand jobs but has moved into his dad's house to care for him.

The questions is if he claims CA will that mean the tax people will come after him and demand lots of money as he has none .

His partner claims PIP and also moved in with the dad but if she claims CA would that mean she loses PIP?

He knows he owes the money but doesn't want bailiffs knocking on the door while he is caring for his dad.

Any help/advice welcomeed.
 
bailiffs usually only get involved after a process to which creditors chase the debtor who doesn't come to an agreement with the debt, to which it goes to court and the court orders the debtor to pay, and the debtor doesn't do what the court orders, including agreeing a repayment plan, so after that the debtor can go back to the court for further action, to which a wage arrestment is usually applied, but baillifs can get involved, but turning up at someones house and taking stuff away like you may see on the telly is only if someone pretty much ignores everything without agreeing a way to pay. there are statutes of limitation regarding taxes but it may be 20 years for SA

he's probably best to speak to legal professionals about it. accountant and solicitor for proper specific advice, and then contact hmrc to work out a repayment deal on the taxes. hmrc usually look at things more favourably if you approach them first with issues. fines can be considerably less if you contact them to advise them instead of being caught
 
He will alert hmrc, to put it politely hes a serial tax dodger by sounds of it.
Unpaid tax bill
Working cash in hand no tax paid.
 
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manic01 said:
He will alert hmrc, to put it politely hes a serial tax dodger by sounds of it.
Unpaid tax bill
Working cash in hand no tax paid.
Click to expand...
He is not a serial tax dodger.
He worked all his life(PAYE) from 16 upto about he was 44 and then he was self employed for less than 4 months as he stayed with me as he was working local
The £7000 was estimated and he never earnt more than £6000 for the 4 months.
He found lots of old paper work in his dad's house as his dad kept all his letters as he had that address down for correspondence.

After the 4 months he went abroad and didn't know about the tax SA form/bill for months.
 
unique said:
bailiffs usually only get involved after a process to which creditors chase the debtor who doesn't come to an agreement with the debt, to which it goes to court and the court orders the debtor to pay, and the debtor doesn't do what the court orders, including agreeing a repayment plan, so after that the debtor can go back to the court for further action, to which a wage arrestment is usually applied, but baillifs can get involved, but turning up at someones house and taking stuff away like you may see on the telly is only if someone pretty much ignores everything without agreeing a way to pay. there are statutes of limitation regarding taxes but it may be 20 years for SA

he's probably best to speak to legal professionals about it. accountant and solicitor for proper specific advice, and then contact hmrc to work out a repayment deal on the taxes. hmrc usually look at things more favourably if you approach them first with issues. fines can be considerably less if you contact them to advise them instead of being caught
Click to expand...
Thank you.

I thought tax debt had no expiry date to claim back the money.

Thanks for the other advice.
 
1vincent said:
He is not a serial tax dodger.
He worked all his life(PAYE) from 16 upto about he was 44 and then he was self employed for less than 4 months as he stayed with me as he was working local
The £7000 was estimated and he never earnt more than £6000 for the 4 months.
He found lots of old paper work in his dad's house as his dad kept all his letters as he had that address down for correspondence.

After the 4 months he went abroad and didn't know about the tax SA form/bill for months.
Click to expand...
And now works cash in hand?
 
1vincent said:
No.

Hasn't for over a year as caring full time for his dad as mentioned in opening post

Thank you for your replies though.
Click to expand...
If hes registered as carer/unemployed etc etc hmrc will go through the motions once his ni number etc is validated.
It will trigger it.
 
manic01 said:
If hes registered as carer/unemployed etc etc hmrc will go through the motions once his ni number etc is validated.
It will trigger it.
Click to expand...
He is not claiming anything at the moment.

Claiming CA ask for NI number which as you say will trigger HMRC interest and that's why I wanted to know if his partner could claim CA instead of him.

Having AA and CA gets your Council tax reduced by a lot and as his dad needs a downstairs toilet/shower conversion the extra AA helps with his daily expenses.

Thanks for reply.
 
1vincent said:
He is not claiming anything at the moment.

Claiming CA ask for NI number which as you say will trigger HMRC interest and that's why I wanted to know if his partner could claim CA instead of him.

Having AA and CA gets your Council tax reduced by a lot and as his dad needs a downstairs toilet/shower conversion the extra AA helps with his daily expenses.

Thanks for reply.
Click to expand...
Best not get caught up in any fraud, it will only get worse.
 
manic01 said:
Best not get caught up in any fraud, it will only get worse.
Click to expand...
What fraud are you on about?

Anybody can claim CA as long as you do at least 35 hours of care for a person who needs it and you don't have to be a close relative.

They live with him and do more than 35 hours.
 
1vincent said:
He is not a serial tax dodger.
He worked all his life(PAYE) from 16 upto about he was 44 and then he was self employed for less than 4 months as he stayed with me as he was working local
The £7000 was estimated and he never earnt more than £6000 for the 4 months.
He found lots of old paper work in his dad's house as his dad kept all his letters as he had that address down for correspondence.

After the 4 months he went abroad and didn't know about the tax SA form/bill for months.
Click to expand...
Contact HMRC and tell them you want to do a self assessment for that tax year. If he earned £6000 for that tax year he owes nothing in tax because you have a tax free allowance and in 2011 it was £7,475. Plus you deduct expenses and as for national insurance its voluntary.
 
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pieeater2015 said:
Contact HMRC and tell them you want to do a self assessment for that tax year. If he earned £6000 for that tax year he owes nothing in tax because you have a tax free allowance and in 2011 it was £7,475.
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Thank you for that info.

His only issue maybe is that he doesn't have any records of payments received like receipt or bank transactions.

Also as he was on SA there will be fines for late payment and not doing a SA form for the following year's I think.
 
They will not want them, Login online with his UTR and see if you can file one. if not just go into the tax office and tell them what's happened and how much was earned. If thats all he earned it will be fine.
 
pieeater2015 said:
They will not want them, Login online with his UTR and see if you can file one. if not just go into the tax office and tell them what's happened and how much was earned. If thats all he earned it will be fine.
Click to expand...
Thank for that info, very helpful.

Yes that's all he earned in that time after his divorce being self employed as soon after he had a breakdown, nowadays a mental health issue and then after a few months went abroad.

I will pass that info onto my cousin.

Thanks
 
pieeater2015 said:
Contact HMRC and tell them you want to do a self assessment for that tax year. If he earned £6000 for that tax year he owes nothing in tax because you have a tax free allowance and in 2011 it was £7,475. Plus you deduct expenses and as for national insurance its voluntary.
Click to expand...
He posted he had a tax bill for 7k not he earned 7k.
 
1vincent said:
Thanks for taking the time to make a post.

My cousin had an estimated £7000 tax bill.

He never filled a tax return or SA form and the tax bill was an estimate .
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Estimate of earnings or estimate of taxed owed?
Thats the key info required.
My replies were solely based on estimated £7k tax owed as you said
£7000 self assessment tax bill
Click to expand...
 
manic01 said:
Estimate of earnings or estimate of taxed owed?
Thats the key info required.
My replies were solely based on estimated £7k tax owed as you said
Click to expand...
Thanks.
Estimated tax owed I believe from what I recall seeing on the paper work that he had when I saw him 2 weeks ago.

I did say in my 2nd post about estimated owed tax but I should of put it the 1st post.
 
1vincent said:
Thanks.
Estimated tax owed I believe from what I recall seeing on the paper work that he had when I saw him 2 weeks ago.

I did say in my 2nd post about estimated owed tax but I should of put it the 1st post.
Click to expand...
So HMRC think he earnt £35k if they want £7k on top of his PAYE paid tax?
 
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