I owe the tax man and i have not filled out any tax forms for last 4 to 5 years

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paul827
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by paul827 » Tue Sep 26, 2017 10:45 am
I'm thinking about applying for an iva, as as i owe the tax man and vat about £30,000 plus around a £5000 overdraft, the problem i have is i've not filled out any tax forms for the last 4 or 5 years, would i need to sort all this out first as i feel i really don't have the strength left to do all this and would probably just declare myself bankrupt as i have no real assets lest
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Michael Peoples
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by Michael Peoples » Tue Sep 26, 2017 10:49 am
HMRC will almost certainly reject any IVA where there are outstanding returns as compliance is more important than just the return. If you want to proceed with an IVA you need to get the paperwork up to date and even then there is no guarantee of acceptance. It could be an expensive and time consuming thing to do for the IVA to be rejected anyway so it really is something you need to weigh up.

You also need to bear in mind though that if you do go bankrupt and your paperwork is in such a mess the Official Receiver may decide that this could form the basis for a bankruptcy restriction. In my opinion it would be worth doing the returns whether you do the IVA or not but ultimately it would be your decision.
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Foggy
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by Foggy » Tue Sep 26, 2017 10:59 am
HMRC will be unlikely let the matter rest indefinitely and you do need to do something to sort this out.
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Lisa Thomas
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by Lisa Thomas » Tue Sep 26, 2017 3:34 pm
Bankruptcy may well be a better option any way if you have little or no assets.

https://www.youtube.com/edit?o=U&video_id=mAkQsVSCnqo
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sheraz.butt
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by sheraz.butt » Tue Sep 26, 2017 7:55 pm
I would definitely suggest getting your tax returns up to date. It will be some effort to get sorted but will put you in the best position to look at a solution out of this.

HMRC are very strict when it comes to considering an IVA proposal especially if they are a majority creditor.
Tax returns being up to date is generally one of their main initial requirements.
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Foggy
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by Foggy » Tue Sep 26, 2017 8:00 pm
Don't look at 4 or 5 returns in one go -- it is too daunting ... take them one at a time --- bite sized chunks.
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paul827
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by paul827 » Wed Sep 27, 2017 10:49 am
Thanks everyone for your replies, i need to put some thought into it but at the moment really do believe making myself bankcrupt and starting with a clean slate seems the only viable option
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Lisa Thomas
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by Lisa Thomas » Wed Sep 27, 2017 1:40 pm
FYI Bankruptcy and IVA are two different procedures.
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paul827
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by paul827 » Wed Sep 27, 2017 2:45 pm
Lisa Thomas wrote:
FYI Bankruptcy and IVA are two different procedures.

Hi Lisa,
I understand bits about it all but not enough to make a rational decision. i'm in trouble financially (obviously otherwise I woudn't be on here ) I've had a bad few years with personal problems which led me to not running my business properly and therefore not doing any paperwork really for the last few years. I think I've manaaged to get through the bad patch and would like to concentrate on getting my business back running properly, the trouble is i've lost everything monetry wise and would just like to draw a line under it all and start again. I just feel declaring myself bankrupt and starting again would be the quickest way to do this, as i don't have the money to pay for an accountant to sort my books out for the last few years or the head space to try and do it myself, hope i'm making sense ?
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kallis3
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by kallis3 » Wed Sep 27, 2017 2:47 pm
Please speak to an IVA company for some advice - they will be able to advise.
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