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kirkndave
New Member
3 Posts |
 Posted - 09 March 2010 : 10:49:58
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We are really unsure of the route to take.
My husband set up his own business (he's a sole trader) about 5 years ago and made a few early business errors - mainly tax related. Last year, due to this, we were paying the taxman a large amount per month to pay him what we owed for the previous year. It was hard work, but we did it. Unfortunately last year, my work contract ended, so I was no longer bringing in money and also my husbands work van broke down, so our income and expenditure last year was pushed to the limits. We now find ourselves in an awful situation, where we owe the taxman now for last year and due to paying previous tax years and a whole load of unexpected expenditure, we can't pay the full amount in one go. They won't except our initial offer of a monthly payment to pay them. We have been on the taxaid website, so now the procedures they could next follow but we want to make sure we have done everything possible to help us out. (we have 4 kids under the age of 8)
As far as we can see, the taxman forces us into BR and we lose our home but clear our debts. Or we voluntarily go BR before we are forced to....
Or, we have just found out we may have equity in the house, which might cover our tax bill, if we can sell. So therefore, do we attempt to sell, pay all tax bill (but not other debts - personally debts are with CCCS).... We then have the issue of renting a home. Our mortgage is currently interest only, so we are paying much less than we would do if we were to rent.! So therefore selling up and renting, would be added strain on financies.
Too many options and so much we don't know about. We desparately want to sort this out, regardless of what route we take, we just need guidance and professional advise through all of this! We need to be prepared and take the right option but at this stage, we don't know what that option should be. Can you guide us? We did post this on the sister BR site and someone suggested an IVA might help? |
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Declan at DebtFreeDirect
Forum Expert
United Kingdom
762 Posts |
Posted - 09 March 2010 : 11:50:20
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Hi there
Welcome to the forum.
From what you say an IVA may be a viable solution and as such I would recommend you speak to two or three different companies.
Out of curiosity, has the CCCS not mentioned the possibility of an IVA?
Your situation isn’t too uncommon these days and given the recent recession, it is something more and more sole traders are finding themselves in.
Thanks
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Declan Murray
Debt Advisor
Debt Free Direct - the UK's largest IVA provider.
http://www.debtfreedirect.co.uk/iva/iva
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kallis3
Moderator
27 month\s down 33 month\s to go.
United Kingdom
35545 Posts |
Posted - 09 March 2010 : 11:56:30
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Hi and welcome from me as well.
I echo Declan's advice. Visit www.iva.com for a list of companies and review. Give one or two a ring and you will receive free and impartial advice as to all the options open to you.
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Buckle your seat belt Dorothy, 'cos Kansas is going bye bye.
27 down, 33 to go.
Jan
xx
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MelanieGiles
IP
30800 Posts |
Posted - 09 March 2010 : 12:56:26
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I generally find that HMRC are pretty helpful when it comes to voluntary arrangements, so long as you can demonstrate that all outstanding returns are actually submitted, to enable them to eventually agree what you owe.
If you have some disposable income, taking account of you at least covering all of your usual domestic and general costs each month, then an IVA may well be an option to explore with an insolvency firm who are experienced in working with the self-employed.
Bankruptcy proceedings may affect your home and your husband's ability to run his business, so professional advice which is initially provided on a free of charge basis would seem very sensible. |
Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp
See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp |
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kirkndave
New Member
3 Posts |
Posted - 09 March 2010 : 13:36:33
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Thank you everyone for your replies.
It's such a horrid, stressful and confusing time! If my kids weren't under the age of 8, I'm sure they'd have left home by now :-(
We have been with CCCS for 5+ years and probably have another 48 years to go before we pay our cards off!!
I contacted CCCS to explain about our tax bill and they referred us to the taxaid website to speak to some professionals. Tax aid were good, advising us of the tax process but unable to guide us in the right direction based on our own circumstances.
I've a few questions on IVA's if anyone can help. Sorry about all this!
Being self employed my husband brings in different amounts each month, so would that cause a problem. Would we base payments on the minimun months from the previous year and could we bring in our CCCS debt as well as our tax debt to an IVA plan.
Also, to help with the tax situation for next year, we were looking at going Ltd this month, does that cause a problem..... and how would you base payments once you are ltd.
The debt is confusing, nevermind trying to understand the business side of things :-( Currently my husband is working 7 days a week to get on top of things, so I'm trying to look into this myself.... and obviously a little confused with it all.
If the tax man is starting proceedings to send someone around to elevaluate our belongings (as he hasn't accepted our initial payment offer), is it too late to attempt to set up an IVA?
We do have disposal incomeand all outstanding returns have been submitted....
Sorry about all these questions :-( |
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MelanieGiles
IP
30800 Posts |
Posted - 09 March 2010 : 21:28:12
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If you were going to propose an IVA, you would need to include all debts - personal and those relating to the business (assuming that you do not trade as a limited company).
Your husband's fluctuating income should not pose a problem, you would work out trading projections to indicate the likely drawings from the business over the next twelve months. I also build in a little more flexibility into my self-employed proposals to give a longer time to pay over periods of peaks and troughs, so that is also something to consider.
I cannot see that incorporation of the business into a limited company brings any great advantages, but I would suggest that you approach an insolvency practitioner who also is an experineced accountant and therefore may understand a little more about the business side of your case. This is a specialist area, and one where you are unlikely to get great help from a call-centre in one of the larger firms. |
Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp
See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp |
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flumpy dog
IVA Artisan
19 month\s down 41 month\s to go.
2012 Posts |
Posted - 09 March 2010 : 21:41:10
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hey kirkndave dont apologise for asking too many questions. at the moment you are worried and need help so ask away !!!
im not an expert !!! but try to help if i can but for all your technical questions the pros on here know their stuff and will be happy to help fd x |
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kirkndave
New Member
3 Posts |
Posted - 09 March 2010 : 22:14:46
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Hi Melanie
Thanks for your help. That's great. It's lovely to speak about all
this!! :-)
I guess the next step is to be put in contact with an IVA company that specialises in and has plenty of experience in dealing with the self employed and HMRC & CCCS debt?
Any recommendations?
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flumpy dog
IVA Artisan
19 month\s down 41 month\s to go.
2012 Posts |
Posted - 09 March 2010 : 22:17:06
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hey kirkndave
you couldnt go wrong in picking mels team-shes not only a lovely person but i think she would be the person to help you out-ive had no complaints !!!!! |
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kallis3
Moderator
27 month\s down 33 month\s to go.
United Kingdom
35545 Posts |
Posted - 09 March 2010 : 23:00:26
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Any of the experts who post on here come highly recommended.
You can find their details under the experts link on the lefthand side of the page. |
Buckle your seat belt Dorothy, 'cos Kansas is going bye bye.
27 down, 33 to go.
Jan
xx
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We are really unsure of the route to take.
