Imagine you’re a stay-at-home dad, looking after two children. Your only income is occasional low-paid gigs as a musician.
Then a tax bill arrives. For £16,000.
A lifestyle change.
This is what happened to Daniel. Until 2003 he was registered as self-employed. Then he gave up work to become a stay-at-home dad to his children.
Busy with two babies, then toddlers, then school age children, Daniel didn’t tell HMRC that his employment status had changed. HMRC thought he was still self-employed. So, when he didn’t submit tax returns for the years between 2003/04 to 2013/14, they issued late filing penalties – that went back ten years.
As his children grew, so did his debt. Without him even knowing.
Finding help at TaxAid.
Overwhelmed and with no way to pay a £16,000 tax bill, Daniel called us.
Our advisers are not only experts in tax – they’re skilled and experienced in working with people who are at breaking point. We were able to offer Daniel calm, professional support, just when he needed it.
Our adviser went through Daniel’s work and tax history. As well as looking after his children, Daniel did occasional work as a musician. His annual income from this work was always very small, and once his costs and available allowances were considered, he never had any tax to pay from it. Our adviser helped Daniel understand how his gig earnings fitted into his wider tax position and what, if anything, he needed to do about it.
Daniel’s case was not complicated, but it was too much for him to untangle on his own. Our adviser appealed the late payment penalties on Daniel’s behalf. The appeal was successful, leaving Daniel with a tax bill of just £4.14.
And, he was now no longer registered for Self Assessment, so there would be no more unexpected late filing penalties.
Moving forward with confidence and clarity.
Daniel was overjoyed. He said:
“There are no words to express my relief. Thank you so much. Your organisation has been extremely helpful, supportive and reassuring. Thank you very much, personally, for your attention to detail of my case. YOU ARE A STAR.”
As well as relieving the stress of a £16,000 bill, Daniel’s tax position is now up to date, meaning there should be no surprises with his tax in future. Thanks to our support, Daniel is now able to move forward with confidence and clarity.