Tax bill received

[malvolio]

I have no savings and am not a homeowner. I need someone to persuade me that bankruptcy is such a bad idea that it's worth taking on the bill plus interest.

You've earned enough gross to get a £55k tax bill, but have no property, liquid assets or savings to show for it. Tricky...

As the man said, look up a poster called webberg and ask for his advice.

[cj930736]

I have no savings and am not a homeowner. I need someone to persuade me that bankruptcy is such a bad idea that it's worth taking on the bill plus interest.

[Albert49]

Bankruptcy

At the time I was employed by IQ contracts. I thought tax debt could be written off with bankruptcy and therefore waving the bankruptcy card would give me a bargaining position? Pardon my naivety if this is not the case, this has hit me out of the blue so I'm pretty new to this topic.

Bankruptcy is quite a drastic step, threatening it will not sway HMRC, if your assets (including your home) are less than 55k then it may result in you paying less, but if they are worth more, HMRC will get their money (though it may be via a charge on your home).
Please note this is only my opinion, I am not a insolvency or tax expert.

[here4beer]

At the time I was employed by IQ contracts. I thought tax debt could be written off with bankruptcy and therefore waving the bankruptcy card would give me a bargaining position? Pardon my naivety if this is not the case, this has hit me out of the blue so I'm pretty new to this topic.

Fairly sure I've seen IQ Contracts posts on here before. My search technique however must be lacking, as it constantly seems to bring up any old sh*te.

It makes sense for bankruptcy to clear all debts, otherwise what's the point. I just can't be certain. When i looked through websites offering it, i didn't see 'HMRC debts' covered. Again, that could be down to my terrible search problems.

The bargaining may only get time, I'm 99.9% sure the tax due is the tax due.

I'm using a Tax Adviser specialising in all this, he/she/they roam these forums. Search for Webberg.

[cj930736]

Were you umbrella? Or limited company?

IHT is only if you get the loan released/wavered by the trust. Suggest you don't get it written off straight away...

Tell them what you CAN afford. I think people have stretched it out longer.

At the time I was employed by IQ contracts. I thought tax debt could be written off with bankruptcy and therefore waving the bankruptcy card would give me a bargaining position? Pardon my naivety if this is not the case, this has hit me out of the blue so I'm pretty new to this topic.

[here4beer]

Thanks for the response. The bill is 55k not including inheritance tax, which they still need to calculate. I cant afford to pay it over a 7 yr period, that's for sure.

Were you umbrella? Or limited company?

IHT is only if you get the loan released/wavered by the trust. Suggest you don't get it written off straight away...

Tell them what you CAN afford. I think people have stretched it out longer.

[cj930736]

There is no negotiating the amount. (Even though limited companies use a salary and dividend mix, they still want the PAYE way of working).

The only negotiating is time. Time to Pay = TTP. With interest at 4.25%. So of course the longer you take to pay the horrendously unfair tax bill, the more money HMRC make off you.

I don't know how bankruptcy effects HMRC debt, i thought it didn't...


What's the total bill you owe (roughly)? Some people only owe £43.23, some people owe £500,000. I know its all relative, but it can make a difference on what route to take next...

Thanks for the response. The bill is 55k not including inheritance tax, which they still need to calculate. I cant afford to pay it over a 7 yr period, that's for sure.

[here4beer]

Hello All,

I have just received a bill for income tax on my contractor loans and was looking for some advice.

Has anyone agreed a settlement with HMRC which was considerably less than their bill? How open are HMRC to negotiation? Has anyone decided to go Bankrupt as a result and what was your reasoning?

Regards

Chris

There is no negotiating the amount. (Even though limited companies use a salary and dividend mix, they still want the PAYE way of working).

The only negotiating is time. Time to Pay = TTP. With interest at 4.25%. So of course the longer you take to pay the horrendously unfair tax bill, the more money HMRC make off you.

I don't know how bankruptcy effects HMRC debt, i thought it didn't...


What's the total bill you owe (roughly)? Some people only owe £43.23, some people owe £500,000. I know its all relative, but it can make a difference on what route to take next...

[cj930736]

Hello All,

I have just received a bill for income tax on my contractor loans and was looking for some advice.

Has anyone agreed a settlement with HMRC which was considerably less than their bill? How open are HMRC to negotiation? Has anyone decided to go Bankrupt as a result and what was your reasoning?

Regards

Chris