Can We get tax relief?

Question

Me and my wife have been struggling with our finances and are in serious debts, which have arisen from pay the bloody tax man for thier pockets, we have been earning just over the threshold and were not entitled to any benefit coz we were working full time.

We like many other bottom line working couples are finding it very hard to pay so much taxes and yett o pay huge loan as well, yet some people can drain the system by not working a day in their life.

All I am asking is that, is there by any chance possible for us to get tax relief for a certain period so atleast we can get back on our feets and pay off our debts! whic h iare in excess of
£ 30k.
we have been told that we are not entitled to tax credit either... even though we have an infant in the house...

If we are not then who is entitled to it on such a time!.....please can some one give me an answer, i will really appreciate it.

Answer 1

It sounds as though you have a real problem and you have my sympathy.

But you are asking the wrong question here. You cannot get any tax relief just to give you a breather and let you pay off your debts. And quite right too as this would amount to asking other taxpayers to subsidise your spending.

There are a number of areas to consider. First make sure that the tax deductions are correct. Do your code numbers give you the proper personal allowance and anything else to which you might be entitled?

Now the Tax Credits. I understood that something is payable unless the total household income exceeds £58,000. Are you receiving nothing because you are paying back a previous overpayment? If not, then use the calculator on the HMRC or entitledto website to find out why you recieve nothing.

I assume you earn too much to qualify for housing benefit but entitledto can check that out for you as well.

If you are definitely receiving everything to which you are entitled then you need to adress the budgeting situation. Why do you owe so much money? (Don't post the answer here - just get it clear in your mind how much is due to unforeseen circumstances, such as a business failure, and how much is just spending more than you earn.)

Can you pay the minimum payments on your borrowings? If not, then you need to consider some form of debt management plan, either informal where you deal with it yourself or more formal such as an IVA or even bankruptcy. Go to The Motley Fool website and find the Dealing With Debt discussion board. There are experts who read those boards who can offer you unbiased advice.

If you don't have any of your debt written off in this way then you need to -

earn more,
spend less, or
a combination of these.

The people at TMF will help with this also.

Good luck. I hope you sort yourself out.

Answer 2

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