My son has been sent a tax bill yet he is on benefits

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i could do with some advice on this issue and what to do about this money owing to the tax office. My son did do some part time work, 2 hrs a day for 18months, however he had to finish as it was causing him too much pain. My son never paid any tax on this income, 6 months of the work period he was in supported work. He continued to get his DLA and ESA. Then we received a form from the tax office as if he was self employed. I completed it and explained that he was not self employed he worked for the local council for 10 hours a week and earned under £70 per week. Since that time he hasn't been able to work due to his walking difficulties and other problems associated with his cerebral palsy. He has received today a letter from HM Revenue, Self Assessment Statement saying he owes, £546.48! I can't understand how this is possible. Could anyone explain to me how I can make the tax office understand this is impossible for him to owe such an amount.

thanks Dimples.

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4 Replies

  • Posted

    Hi Dimples,

    Have you phoned the HMRC and asked them, if this was calculated on a temporary Tax Code - which would probably account for discrepancies. My middle son has been working part-time for nearly 2 years and paid no tax yet, only National Insurance, which is correct. Tax is another matter, sometimes you are straight away, other times you are taxed when you reach the Tax Annual Threshold for that year, and some people end up owing hundreds which the HMRC demand you pay back.

    Owing the Government is a no win situation, well I say that in certain cases there are loopholes, but not in employment tax thresholds.

    Regards,

    Les.

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    • Posted

      Oh BTW, the HMRC can take money from you when on Benefits, the only way to stop this is to use an Act against them, but you need to fit the criteria in order to be able to do it.
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    • Posted

      No I haven't rang them yet, I did ring them a while ago as at first his tax bill was in the thousands, this is when they sent me a form to complete on his behalf, they then revised the calculation and bought it down, however my son does not have sufficient income to pay this amount. I will ring them again and see what they say. I wish I knew the loopholes to get him not to have to pay anything, I will just see what they say.

      thanks for your advice.

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    • Posted

      The only loophole with the HMRC is to take out a DRO, this is a last result to any case. But really you need debts and in debt for thousands. Once a DRO is setup it blocks payments being taken out of any Benefits.
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