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  1. #1

    Nervous Newbie


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    Default Tax, HMRC and Assets - Hypothetical question

    Hi.
    I am looking for some advice for a friend.
    This friend is contracting, and is a director/ shareholder of a limited company, and looking to use some sort of off shore tax scheme to reduce his tax liabilities. Fast forward a few years time and HMRC decide this scheme is not legal and demand he pays all of the back tax owed. If this friend finds himself unable to pay said tax bill, can HMRC recover any money owed by repossessing his house (in joint names) or any other assets? I'm assuming anyone who can't pay would be declared bankrupt also? So, how safe is your house if you owe HMRC money?

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    Contractor Among Contractors


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    Not safe at all. HMRC will seek to declare "your friend" bankrupt and "your friend" will possibly lose his house, and all your, sorry his, other possessions too. If you think that bankruptcy and walking away is easy, it isn't. I've had friends and relatives go through it, and it is a horrible, humbling, shaming situation. Avoid.

  3. #3

    Nervous Newbie


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    Quote Originally Posted by Alan @ BroomeAffinity View Post
    Not safe at all. HMRC will seek to declare "your friend" bankrupt and "your friend" will possibly lose his house, and all your, sorry his, other possessions too. If you think that bankruptcy and walking away is easy, it isn't. I've had friends and relatives go through it, and it is a horrible, humbling, shaming situation. Avoid.
    Thank you very much. My friend has had lots of information, lots of it conflicting. Good to get an honest assessment based on experience. Thanks again.

  4. #4

    Super poster

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    Quote Originally Posted by Downsy View Post
    Thank you very much. My friend has had lots of information, lots of it conflicting. Good to get an honest assessment based on experience. Thanks again.
    Tell him to get a divorce and hand all his assets over to his wife.

  5. #5

    Still gathering requirements...


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    Or put all assets, bank accounts, property (absolutely everything) into a irrevocable life trust.

    "Your friend" no longer owns anything but retains access to everything.

    Your friend goes bankrupt for 12 months, doesn't loose anything and is debt free after 12 months.

    That's the typical approach for A list celebs who go bankrupt repeatedly while still driving a lambo.

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