Debt with HMRC

[mmya]

Hi

I applied for citizenship application. I do not have any CCJ. I have debt with hmrc of 30,000.

I had my bio-metric yesterday at home office and now they are processing my application. As far the debt with hmrc is concerned, they offered me an instalment plan and now i am on it and i also have received a letter from them and so far have made 2 payment towards it.

I wanted to ask will this debt can still affect my application of citizenship? or having an instalment plan with hmrc will be satisfactory?

I have a formal arrangement and an instalment now with HMRC to pay it on monthly basis.

Appreciate your guidance.

Mo

[mmya]

Any advice?

[CULLINAN]

There is no need to declare the debt (civil matter) if you do not have a CCJ in place. As long you have a payment plan in place and you are abiding by the regular payments, you should be okay.
I am not sure what your debt is related to though. Ideally your tax affairs should be clean with HMRC. I would suggest clarify in the cover letter and explain that you are on a payment plan agreed by HMRC. Also provide evidence of regular payments.
HO will make checks with HMRC anyways so better to clarify on your own.
You could have problems if the debt was due to a deceitful or fraudulent activity though.

[mmya]

thanks for your messaage.

the debt is an outstanding tax bill from the self-employment work i did till 2016 and i have made a payment arrangement with them and my second payment under the plan will be on 28th may 2021.

because there was no option to mention the debt about HMRC and i was not aware of it, i did not inform home office and moved an application for citizenship and my biometic was on 15th May 2021. i have received a letter from HMRC confirming that there is a payment plan and arrangement and to pay £300 monthly payments under the plan.

please suggest if that should be okay and how should I go about this please? also does the home office always checks with hmrc?

appreciate your guidance.

[mmya]

There is no need to declare the debt (civil matter) if you do not have a CCJ in place. As long you have a payment plan in place and you are abiding by the regular payments, you should be okay.
I am not sure what your debt is related to though. Ideally your tax affairs should be clean with HMRC. I would suggest clarify in the cover letter and explain that you are on a payment plan agreed by HMRC. Also provide evidence of regular payments.
HO will make checks with HMRC anyways so better to clarify on your own.
You could have problems if the debt was due to a deceitful or fraudulent activity though.

I dont have any CCJ only this outstanding tax bill which I have made a payment plan with HMRC directly and paying towards it 2nd payment is due on 28th may 2021.
please advise appreciating your guidance.

[CULLINAN]

An application will not normally be refused simply because the person is in debt, especially if loan repayments have been made as agreed or if acceptable efforts are being made to pay off accumulated debts.
However, where a person deliberately and recklessly builds up debts and there is no evidence of a serious intention to pay them off, the application will normally be refused.

https://assets.publishing.service.gov.u ... gov-uk.pdf


Page 36

Also read page 41:

Deceitful or dishonest dealings with Her Majesty’s Government
An application will normally be refused where the person has attempted to deceive or otherwise been clearly dishonest in their dealings with another government department.

I do not know the actual circumstances of how you acquired the debt with HMRC, but as long it was an unpaid tax debt but no fraud involved, I think you should be okay.

I believe as long you have agreed with a plan with HMRC and making regular payments to pay off the debt, you should be okay.

HO makes a number of enquiries with different government departments for good character.

[mmya]

An application will not normally be refused simply because the person is in debt, especially if loan repayments have been made as agreed or if acceptable efforts are being made to pay off accumulated debts.
However, where a person deliberately and recklessly builds up debts and there is no evidence of a serious intention to pay them off, the application will normally be refused.

https://assets.publishing.service.gov.u ... gov-uk.pdf


Page 36

Also read page 41:

Deceitful or dishonest dealings with Her Majesty’s Government
An application will normally be refused where the person has attempted to deceive or otherwise been clearly dishonest in their dealings with another government department.

I do not know the actual circumstances of how you acquired the debt with HMRC, but as long it was an unpaid tax debt but no fraud involved, I think you should be okay.

I believe as long you have agreed with a plan with HMRC and making regular payments to pay off the debt, you should be okay.

HO makes a number of enquiries with different government departments for good character.

it was tax due from self-employment work i carried out nothing fraudulent merely unpaid tax from self-employment work i did ..
i did not send any letter to HMRC about this debt arrangement with HMRC nor was asked to mention in the application, they have not asked me yet, should i send them the copy of the agreement between me and HMRC of paying the tax outstanding amount with instalment plan? or shoudl not do that and let them contact me first? please advice appreciate your advice.

[CULLINAN]

You are right the form only asks you to declare any CCJs. Since you do not have one, the debt is merely a civil issue between you and HMRC.

Ideally, if I was you, I would explain in a cover letter to be on the safer side, provide evidence for an arrangement of the payment plan and the evidence for the payments you have made to HMRC.

If you wish, you can still email HO to clarify. HO will know anyways when they make checks with HMRC (since its a government department), I believe it is best to clarify on your own. But obviously its up to you.

NationalitySupportTeamFMT@homeoffice.gov.uk