Revenue income Tax Liability passed onto Sherrif

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Hi,

My husband is self employed and during Covid had difficulty paying the 2019/2020 income Tax Liability as he was locked down for two long periods. We paid some of the 2019 but none of the 2020. In June of this year we paid off the 2019 liability in full so had the 2020 liability remaining. We made a phased payment arrangement with Revenue at this stage for the 2020 bill to pay off over two years. The liability was €4,200 approx at this stage made up of self employment income tax and rental income tax. The liability increased to over 6k with penalties and interest . We did question this figure but Revenue confirmed it as correct so a monthly figure of €262.00 was agreed and the payment date was the 15th of every month.

The first payment went fine in July. The second came out on the 17th Aug but failed as I forgot to transfer money into the account. I thought they would make a second attempt but did not so I rang and made the payment over the phone. I was told they don't go a second time into the account to collect the money. Again I transferred over money on the 15th Sept but then noticed a week later that they had already attempted to take the money on the 7th, which failed. It's an account we don't use for anything else as wanted to be sure nothing else would take the money. Again I rang and made the payment within the month

We got a letter this morning to say that the 2020 liability has now been given over to the Sherrif and a demand for payment in full. When I looked at the Revenue website, it says the arrangement will cancel if three failed payments.

We have no hope of paying in full at the moment but we are okay with the monthly arrangement. We can ring the Revnue in the morning but wondering if anyone knows if the Revenue would be open to re-instate the arrangement or is it out of their hands now that it has passed to the Sherrif.

If stays with the Sherrif, does anyone know if they will agree to a monthly arrangement as well. We have no goods or 'chattels' to seize. Husband has a jeep but there is a loan on that. If taken he has no means of earning income. The engine on my car went two months ago so scrapped and not replaced.

After nearly three years of financial difficulties with 4 children to support (mortgage in arrears as well), my head is melting and can't see the wood for the trees at the moment and this latest letter has me spinning. Husband not so worried as we can't give what we don't have and they will have to allow us pay it over time. (or so he says)

I always read good advice here, so looking for someone to put this into perspective for me. I work full time as well so can afford the monthly amount of €262.00.

As regards the 2021 liability, by the time the online return is due by Nov 16th, would have about half to pay upfront and then winging it again and hopefully paying balance over the next six months as my car loan finishing and would use that. Was hoping Revenue would not come at us about the 2021 liability for a bit.

Thanks in advance

downtheroad

Once the debt is passed to the Sheriff by Revenue then it is completely out of Revenue's hands. No point contacting Revenue, they will just tell you to contact the Sheriff.

I have heard of people making payment plans with the Sheriff. Usually some form of down-payment is required. Show the Sheriff the Phased Payment Arrangement you made with Revenue, and ask for similar treatment.

For 2021, pay what you can afford and send a MyEnquiry to Revenue - they may required a new phased payment Arrangement for the balance. And don't forget about your 2022 preliminary tax at the same time.

ThreeGreens

Revenue are supposed to write to your before sending it to the Sheriff. If I remember correct, they have to give you a notice and can only send it to the sheriff 7 days after that.

So if they haven't done that, you could complain to the Revenue office and ask them to withdraw it.

As for paying the Sheriff by instalments, the Sheriff is almost always open to payment by instalments. And the sheriff doesn't charge interest on the period over which you are paying by instalments (only interest accrued to the date that the bill was sent to the Sheriff by Revenue).

However you do have to pay Sheriff fees which will have been included on the Sheriff notice.

You probably won't get a tax clearance cert while the bill is with the Sheriff (if that's important to you).

Madd002

Seriously there's sheriff's In Ireland..

I'm a bit confused regarding your husbands returns. So returns for 2018 is it not compulsory to pay preliminary tax at 100% for following year for 2019, which would've had a smaller bill. And then for 2020 which given your husband being off would've reduced his tax bill lower for that year..?

Xander10

Yes once passed to the sheriff's office revenue won't take it back.

It's been a few years since I dealt with the sheriff on behalf of clients.

It was usually possible to get an installment arrangement with them. One or two were nicer and more sympathetic than others.

But from experience, although the word sheriff conjured up heightened fear for clients, in general, I found them actually easier to deal with that some in revenue.

So advice would be contact the sherrif in the morning, explain what you can pay and when. And keep them updated. Avoid Missed payments because it adds to their costs and paying out more.

Try not to stress too much about it

Stationmaster

Contact the sheriff and explain everything to them. They're quite reasonable to deal with and you will be able to enter an installment arrangement with them too.

walterking

Revenue have no interest in wasting time toing and froing with people who miss payment plans - and this is from personal experience from many years ago. The document you signed tells you that failure to meet the payment will result in the agreement being cancelled.

The positive side is the Sherriff is very amenable to a deal and are understanding on any genuine case.

They are NOT like the TV enforcement programmes from the UK.

Then once this is sorted have a look at every outgoing and see where savings can be made - eg mobile plans 48.ie are 12.99/month, cancel or curtail to the minimum and tv plan and if keeping negotiate a better rate, same for broadband. You'd be surprised at how a few small changes can make a big difference

capefear

In some cases, it's better to deal with the Sherriff instead of the revenue. The sheriffs are swamped at the moment and have too much work on their hands. Ring him, explain your situation, and tell him your payment plan. They should work with you. Once you work with them and they get their fees they're happy :-). If you agree on a payment plan and think you will miss a payment ring them beforehand (better to email as you have a written record) and tell them it will be paid a few days late. We have had clients in the past hand the Sherriff 20 post-dated cheques, and they were ok with that. They are very flexible and as I said will work with you.

PM me if you have any questions as