He never worked the whole 12 months.
PAYE since April 6 until end June and then self employed August to November and then didn't work or claim benefits and left UK December.
Careers Allowance and old unpayed tax bill.
- Thread starter 1vincent
- Start date
PAYE since April 6 until end June and then self employed August to November and then didn't work or claim benefits and left UK December.
manic01
VIP Member
If you have unpaid tax bills from 20 years ago, HMRC can legally pursue you for the original tax owed, plus substantial interest and penalties.
Under UK law, there is no limitation period on tax debts, and HMRC has a 20-year "look back" limit for cases of deliberate non-compliance or evasion.
1. Massive Financial Penalties
The total amount you owe will likely be significantly higher than the original bill. HMRC charges compound interest on all late payments and adds severe penalties. Depending on whether your failure to pay was careless or deliberate, penalties can range from 30% to 100% of the original unpaid tax.
2. HMRC Enforcement ActionIf you have ignored a tax bill for decades, HMRC can use robust enforcement powers to recover the money.
They can:Send debt collection agencies to recover the debt.Take money directly from your wages, bank accounts, or pensions.Send bailiffs to seize and sell your possessions.Initiate bankruptcy proceedings against you.
3. Criminal ProsecutionIn the most severe cases of deliberate tax evasion, HMRC can pursue criminal prosecution. While rare, this can lead to a criminal record, fines, and potentially a prison sentence.
Next Steps and Advice
If you have outstanding historical tax liabilities, you should not ignore them, as interest continues to accrue.
Taking proactive steps often leads to a more lenient outcome than if HMRC discovers the debt themselves.
Make a Disclosure:
You can use the official GOV.UK Voluntary Disclosure Service to report unrecorded income or historical tax gaps.
Seek Professional Advice:
Speak with a tax accountant or contact independent charities like TaxAid for free, confidential guidance on how to negotiate a repayment schedule with HMRC before enforcement action is taken.
What will happen if you do not pay your tax bill -
GOV.UK12 Sept 2025 — If we cannot reach an agreement with you, we may use our enforcement powers to collect the debt.
HMRC and debt collection agencies. We can use debt collection agency.
Under UK law, there is no limitation period on tax debts, and HMRC has a 20-year "look back" limit for cases of deliberate non-compliance or evasion.
1. Massive Financial Penalties
The total amount you owe will likely be significantly higher than the original bill. HMRC charges compound interest on all late payments and adds severe penalties. Depending on whether your failure to pay was careless or deliberate, penalties can range from 30% to 100% of the original unpaid tax.
2. HMRC Enforcement ActionIf you have ignored a tax bill for decades, HMRC can use robust enforcement powers to recover the money.
They can:Send debt collection agencies to recover the debt.Take money directly from your wages, bank accounts, or pensions.Send bailiffs to seize and sell your possessions.Initiate bankruptcy proceedings against you.
3. Criminal ProsecutionIn the most severe cases of deliberate tax evasion, HMRC can pursue criminal prosecution. While rare, this can lead to a criminal record, fines, and potentially a prison sentence.
Next Steps and Advice
If you have outstanding historical tax liabilities, you should not ignore them, as interest continues to accrue.
Taking proactive steps often leads to a more lenient outcome than if HMRC discovers the debt themselves.
Make a Disclosure:
You can use the official GOV.UK Voluntary Disclosure Service to report unrecorded income or historical tax gaps.
Seek Professional Advice:
Speak with a tax accountant or contact independent charities like TaxAid for free, confidential guidance on how to negotiate a repayment schedule with HMRC before enforcement action is taken.
What will happen if you do not pay your tax bill -
GOV.UK12 Sept 2025 — If we cannot reach an agreement with you, we may use our enforcement powers to collect the debt.
HMRC and debt collection agencies. We can use debt collection agency.
pieeater2015
TK Veteran
"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."
I was working off this, If he went self employed in the new Tax year without any PAYE to push up his earnings. If he worked over his allowance during the tax year with PAYE he would owe 20% of the £6000 with expenses taken off depending on how much PAYE he earned.
Best thing he could do is either login to his tax account and see or go to the tax office to sort it out.
I don't think he has an online tax account as he said he didn't set one up online.
As I mentioned in a reply to you (I think) he doesn't have any records of payments received and the company he worked for went bust a year or 2 after he stopped being self employed.
As for the local tax office his is over 50 miles away but if he has to go there then he will have to try and arrange a sitter for his dad.
pieeater2015
TK Veteran
HMRC online services: sign in or set up an account
Register and go from there everything will be in that account. He can see how much he earned PAYE and if there is anything outstanding. He needs his NI Number
manic01
VIP Member
Self employed had a £7000 self assessment tax bill
Not 7k earnings, 7k tax bill
They have estimated he owes 7k on whatever they believe he earnt.
If it was 7k earnings wouldn't be so bad.
Ok thank you very much for that
When I think about my cousin could not of earned more than £7000 for both self employed and PAYE together as he only worked 6 months or just under .
Thanks again for taking the time to reply to the thread.
manic01
VIP Member
Is a fair amount 15 years ago.
They dont just pull figures out of the sky though.
Thanks for taking the time to reply to the thread, keeping us updated
Last edited:
Update of sorts.
He went self employed on 2/08/2005 according to his registration he did at the local tax office.
We only worked out when I got a Google photo reminder of us moving his belongings into our home and when I told him he doubled checked the paperwork.
Sorry for the wrong dates but time passes quick but he's going to have a look around his dad's house for more paper work as his dad's a hoarder and with his memory issues doesn't remember where he stored stuff.
He went self employed on 2/08/2005 according to his registration he did at the local tax office.
We only worked out when I got a Google photo reminder of us moving his belongings into our home and when I told him he doubled checked the paperwork.
Sorry for the wrong dates but time passes quick but he's going to have a look around his dad's house for more paper work as his dad's a hoarder and with his memory issues doesn't remember where he stored stuff.
moshibeth
VIP Member
The inland revenue deal with this sort of stuff every day. As mentioned he would be better off giving them a call and arrange to speak to someone. If there was any tax owed they would come to an arrangement. Only thing that might affect a claim for carer allowance would if he has not paid enough stamp but I can't confirm that sorry.
Thanks.
When you say not paid enough stamp, do you mean my cousin or his dad?
My cousin hasn't paid any NI for a lot of years but I didn't think that mattered for CA but I will get him to find out.
moshibeth
VIP Member
Your cousin mate