My tax bill is partly for self employment, due in January but a bigger chunk is corporation tax for my limited company, due in October. I assume this is company debt and wouldn't be included in an IVA though?
That's right. The IVA can only include debts that you are personally liable for, and corporation tax would not fall into this category.
So in terms of the self assessment income tax that you owe as a payment on account from January, would this amount alone mean you are insolvent in the terms outlined above? And have you filed all self assessment tax returns to HMRC for your operations as a sole trader?
At first you draft to live
But given time
You live to draft
Have a word with a professional Rod - the advice is free and impartial and your circumstances can be gone into in much more detail than on here.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Yes, the tax bill will make me insolvent if things don't change before its due.
What worries me about an IVA is, because I have an irregular income, I might not be able to maintain payments for 5 years, so I might end up in bankruptcy halfway through. So bankruptcy might be a better option from the outset.
As kallis3 says, I need to consult a professional, so I think that's what I'll do.
You do need to speak to someone Rod - the experts who post on here come highly recommended and you can find their details via the 'Ask a question' link on the left hand side of the page.
Tell them everything and they will advise the best way forward for you. Some things are better discussed off forum as we can only advise in general on here.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
An IVA does require a certain amount of commitment to regular repayments, but with my own self-employed clients I build in a little more flexibility to cope with the peaks and troughs of trading - after all most IPs are self-employed and we suffer from seasonal fluctuations in income as well so more than understand these difficulties.
If you go bankrupt now, you would have to resign as a director of your limited company. Could you the company trade on without you?
