Anyone can lose their job. And anyone can experience mental health issues. For Anil, they both happened. In quick succession.
Then a tax bill arrived.
Life-changing events.
A well-paid high-flyer, Anil lost his job in 2017. The following year he was sectioned under the Mental Health Act, spending time in hospital. In the long, slow road to recovery, the last thing on his mind was his tax position.
But while Anil was getting the help he needed and taking the first fragile steps forwards, he was building up a tax debt.
Changing circumstances.
Anil was in Self Assessment when he was working. After he lost his job, he hadn’t told HMRC about his change in circumstances.
So, thinking he still met the Self Assessment criteria, HMRC generated tax returns for eight years. When they didn’t get the returns back from Anil, they issued late filing penalties.
By the time Anil was able to engage with his tax situation again, he had a tax debt of £6,705.
At this point, Anil hadn’t worked for around seven years. He was living off his savings. He was feeling ready to think about the next phase of his life and getting back to work.
But the debt and confusion around his tax was getting in the way.
That’s where we came in.
What did our adviser do?
Anil needed calm, expert help. Our advisers are not only tax experts – they are experts in working with people who have difficult personal circumstances. Our adviser was able to offer support in the way Anil needed it.
Together, Anil and our adviser worked to gather Anil’s financial information for the previous years. Our adviser liaised with HMRC to establish the issue. They submitted an appeal against the penalties, based on Anil’s low income and history of mental health issues.
It was successful. Anil’s debt was removed.
Getting ready for the next step.
Anil was deeply appreciative to have the debt – and stress – lifted. But that wasn’t all. Personally, he was ready for a new beginning and keen to get his tax in order from the start.
Our adviser gave him advice about starting work on the right tax code and his National Insurance and pensions contributions, helping to give him the best possible new start to working life.
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