Hi all , been looking at a few posts recently and really need some advice ASAP!
I am 34 ,self employed builder and married with 2 kids under 5 with a shared ownership mortgage .
To cut a long story short I'm in debt to the the tune of around £30k to various creditors including the HMRC
A couple of months ago I looked at taking the IVA route to clear the debts but after looking at my financial figures I decided to contact each creditor and negotiate a reduced payment plan until I get back on my feet.
I owe HMRC £1000 for a payment on account for self assesment tax for which I am on a time to pay plan which ends this December .
However I owe the HMRC £4K in unpaid CIS deductions from this financial year (2015-2016) which I foolish thought the HMRC would not chase up until later on .
At around 6am this morning I woke to the door knocking -it was an officer from the HMRC after the £4K ...........
He advised me I needed to pay straight away to which I replied I had no money , he explained my rights and left me with some paperwork advising the officer will commence an taking control of goods notice enforcement -I have 14 days to pay or they will be back to make a list of possessions I own .
Everything in the property is in my wife's name and we have proof -except for my work van which is worth approx £2k at best.
Now if apply to start an IVA will this stop the HMRC from taking my van as I need for work or have I left it to late ????
I think you need to take professional advice on this - and promptly - rather than through a forum. Whilst there are some very knowledgeable people on here it sounds like your situation is serious and you need to act quickly.
I'm sure HMRC are used to knowing what they can take and I'm sure you're not the first to have "everything in the wife's name..."
I'd speak to an insolvency specialist pronto - they will be best placed to recommend how to handle HMRC and what can be done to try and prevent further action being taken.
Given you need the van to be able to work you may be able to argue it's a tool required to do your job, however HMRC can be unrelenting in their pursuit of the money they think you owe.
For the sake of £4k, is there anyone you could ask to lend it to you? It would solve this (the most urgent) problem immediately whilst you work out the rest.
I really hope you get this sorted.
Last edited by thisusernameistaken on Tue Nov 10, 2015 10:09 pm, edited 1 time in total.
This is quite common and it is easy to get HMRC to suspend action, It just takes a phonecall from an IP firm to the right people and they will put a hold on things. HMRC are usually fine but regardless their debt is small in relation to your overall liabilities.
If you enter an IVA the subbies you deducted money from will not be worse off and will get credit from HMRC.
Thanks guys for the replies ,it means a lot ! I have been up googling most of the night to get info ! I'll get on to it ASAP today and let u know how I get on ,thanks
Thanks for all the advice guys ,just an update -a family member lent me the money to pay off the hmrc in the end ! , as really going to apply for an IVA for the amount of £4K was a bit extreem ...A lesson learnt there .........never mess with the HMRC.
Have gone through figures over last couple of weeks and hopefully with a strict budget will be out debt in a few years -fingers crossed !
If you can avoid a formal insolvency it is much better for you so good to see that everything is on track. Hopefully your business grows and you get out of debt quicker but make sure you put aside the money for HMRC.