Charities collaborate on tax debt advice films

Six short films have been published online giving free, expert advice on how to handle tax debt.

This comes as HMRC begins issuing 850,000 penalty notices to Self Assessment taxpayers¹.

The films have been professionally produced by the charity TaxAid, in a project run in consultation with the Low Incomes Tax Reform Group (LITRG) and Tax Help for Older People, and co-funded by the Chartered Institute of Taxation (CIOT).

The films can be viewed at http://taxaid.unique-media.tv or on the TaxAid YouTube channel.

LITRG Technical Director Robin Williamson said:

“These six films set out in an easy to understand way what people should do if they receive a letter from HMRC telling them they owe tax debt. They take the taxpayer through each stage of HMRC enforcement action, from the initial letter about an overdue tax return to court action and the threat of bankruptcy.

“LITRG is pleased to have worked with TaxAid on this project. TaxAid and Tax Help for Older People provide invaluable support for those with tax problems they are struggling to deal with. These films provide accessible advice to those with tax debts and guidance on the circumstances when the two charities and other tax debt advisers can help.”

TaxAid Director Rosina Pullman said:

“Thousands of people are unable to pay their tax on time, and many have sleepless nights worrying about going bankrupt, losing their home or job, or even going to prison.

“The golden rule is to act quickly. Do not ignore a letter or demand from HMRC which states that tax is due, as this will usually make things worse. Whether you agree with HMRC’s assessment or not, a quick response can reduce the size of the problem. And if you need help, get expert advice, from a professional adviser or, if you are on a low income, from TaxAid or Tax Help for Older People.”

Notes to editors

1. HM Revenue & Customs (HMRC) has announced that 850,000 penalties for late tax returns for Self Assessment taxpayers for the 2010-11 tax year will be issued over the course of this week and next week. LITRG has published a guide for those receiving these penalties: http://www.litrg.org.uk/News/2012/late-file-reason

2. There is more advice on dealing with tax debt on the TaxAid website at http://taxaid.org.uk/guides/tax-debt

3. The CIOT co-funds (with the Big Lottery Fund) the Talking Tax Debt project in line with the Institute’s mission to advance public education in taxation.

4. The Low Incomes Tax Reform Group (LITRG) is an initiative of the Chartered Institute of Taxation (CIOT) to give a voice to the unrepresented. Since 1998 LITRG has been working to improve the policy and processes of the tax, tax credits and associated welfare systems for the benefit of those on low incomes.

Technical Team

21 February 2012