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Inland Rev / VAT problem...
Aug 9th, 2008, 12:01pm
I'm sorry to piggyback on this thread but I can't find anywhere to start a new thread/topic. (ADMIN - DO NOT DELETE RESPONSES - SEE ADMIN BOARD)
I have received a letter from IR telling me that I have to pay them 18K owed within the next 10 days, or they will follow up with a visit and presumably legal action. I also owe around 9K to the VAT, and expect a similar letter very soon.
About a year ago, I was doing fine, earning around 5K per month, putting aside the VAT and tax from my self-employment income, paying my mortgage and other bills. Then the sky fell in. A long-term contract was cancelled at very short notice, my wife's promised contract was also cancelled due to management reorganisation, which deprived us of a further 1500 per month, and then we moved into the current economic global mess. While we have both been looking for contract and full-time work since, it has been sporadic to say the least. I am about to start a new contract in the next few weeks, but I doubt this will deter HMRC.
Once our troubles started, I was presented with the option of either continuing to put aside the VAT/tax money or paying my mortgage. Thinking (naively) that things would look up, I decided to keep the mortgage payments current and put the VAT/tax savings on hold until some sunny day when things would look better. That day hasn't arrived, obviously, and I now owe the VAT and IR.
Bankruptcy will lead to many problems, including serious issues with my wife's family and possibly even divorce. Believe me, this is a very real, gut wrenching thought. I need to ask anyone out there if there is any straw for me to grab at. Aside from our flat in the UK, we own a small flat in Europe, where her family home is, and we cannot afford for this to be included in any legal actions. IVA if not an option for us, since we have no equity on the UK flat, so we can't secure a loan against the property (we already have some secured loans against the flat here).
I am considering talking to one of those companies that buy your home and rent back to you. I think this not likely due to the equity situation, but I would appreciate any input before I get them involved.
Basically, I need to find around 30K to pay off the VAT and IR, then worry about organising payment to the mortgage company (Northern Rock) for the remaining mortgage balance while renting a place. Not the best result, but at least bankruptcy won't be in the picture and I'll keep my sanity and marriage. Being poor isn't a problem; I've been there before, but I do need someone - anyone - to get back to me. I can provide the financial information if anyone wants it, but having sat with CAB a couple of times and going through finances,I've already been advised that IVA isn't an option.
Sorry if this is rambling, but I am feeling physically sick as I type and I am desperate for some help. Please help if you can.
Thank you.
« Last Edit: Aug 9th, 2008, 3:52pm by plumduff »
WhistlingWind
Newbie
Re: going bust
Reply #1 - Aug 9th, 2008, 1:14pm
This is for collizz:
What a terrible dilemma. My advice is: don't try to dig yourself out of this hole without professional help. I strongly recommend you contact, as soon as possible, an excellent company, based in Cardiff, called EASIERDEBT. I cannot recommend them highly enough!! They are helping us with our financial plight, are very professional and experienced in the whole business of debt management and they will both negotiate on your behalf and advise you what to say when/if you receive dreaded phone calls. They will explain all the options available to you and you may well find that you don't have to consider IVA or bankruptcy. They are licensed under the Consumer Credit Act. Here are their details:
I am sure they will be able to help you. The thing we've learnt about coping with a debt situation is that the whole subject is far more sophisticated than most of us realise. People like easierdebt speak the same financial language as the creditors and they all understand each other. By contacting them you will also be displaying to your creditors that you are a responsible person who is taking the situation seriously and getting it properly managed - and that counts for an awful lot! So - please, please do it - don't bear this burden on your own, there's obviously too much at stake.
Best wishes and Good Luck!
Admin - will never condone a member contacting a company such as Easierdebt.. they provide debt management plans (DMP's for a fee).. You can get the same advice for FREE from either CCCS or Payplan....
« Last Edit: Aug 9th, 2008, 3:47pm by plumduff »
collizz
Topic Starter
Newbie
Re: Inland Rev / VAT problem...
Reply #2 - Aug 9th, 2008, 3:39pm
Thank you for getting back so quickly, and for the e-mail, Whistling Wind. I have contacted the agency you mentioned.
The business is a lesser problem. I have worked outside of my limited company for most of the year, working with a couple of service providers, as I have for several years now. I file self-assessment - unfortunately not accompanied by payment, of course.
A few questions, if I may:
Would selling the flat make any difference to my situation regarding the legal action? When the VAT send me a similar letter, will the VAT and tax be somehow related? If I don't mention the property in Europe (there is no equity on that either, and there will be additional penalty charges to pay if I do sell it), how likely is it that HMRC will become aware of it? If I do have to declare bankruptcy, how long will the process take?
Thanks again for your help.
plumduff
Administrator
Re: Inland Rev / VAT problem...
Reply #3 - Aug 9th, 2008, 3:41pm
Inn the interest of debat (and also because ive just deleted my original post)
I (as admin) do not condone collizz contacting the above company as they look like a bunch of shysters who will tell you a pile of crap in order to make themselves a good amount of money out of your misery...
I would strongly, strongly urge you to contact Business debtline www.bdl.org.uk as soon as possible... Not Easierdebt...
And the only reason I havent deleted the easierdebt pile of bleep is to get some debate going..
Business debtline is the way forward collizz.... x
plumduff
Administrator
Re: Inland Rev / VAT problem...
Reply #4 - Aug 9th, 2008, 3:44pm
Collizz.. this is why we on forum.. the regulars rather than whilstlingwind will not condone these crappy companies...
What does it cost? There is a monthly management fee for the plan, which is 15% of your agreed monthly payment or 25 which ever is the greater. We also charge an initial fee for setting up your programme and this is equal to the first months agreed payment.
Business debtline will give you the advice for free.. and if a DMP is your best option then you can arrange this through CCCS or payplan.. again for FREE,....
Do not use fee charging DMP providers EVER...
plumduff
Administrator
Re: Inland Rev / VAT problem...
Reply #5 - Aug 9th, 2008, 3:48pm
Can all admin leave the above information.. as it may be a warning to others....
collizz
Topic Starter
Newbie
Re: Inland Rev / VAT problem...
Reply #6 - Aug 9th, 2008, 4:37pm
OK, I understand; just desperation kicking in. I'll contact BDL today. Could you give me some feedback on the questions, please? Thanks.
plumduff
Administrator
Re: Inland Rev / VAT problem...
Reply #7 - Aug 9th, 2008, 4:43pm
Until you can contact Business debtline.. please wait for responses from other regulars.. Many of whom have been or are in business themselves...
BTW - welcome.. x
confused.com
Gold Member
Re: Inland Rev / VAT problem...
Reply #8 - Aug 9th, 2008, 6:21pm
Hello and welcome to the forums.
Have you seen the 'welcome to newcomers' thread. Maybe with more information, the regulars will be able to give you some help.
Lastly, I fully agree with Plummie's advice. Your creditors will be more understanding that you are using the services of a FREE company to help you, afterall ANY company offering their services and charging you a fee is taking money away from them and NOT reducing your overall debt. It's tempting to panic (we've all done that) but try and arm yourself with as much information as possible (and Business Debtline will offer this FREE advice).
Good luck to you and keep asking questions.
Mr C
Sue
Gold Member
Re: Inland Rev / VAT problem...
Reply #9 - Yesterday at 10:09am
I've probably been here longer than most (some 8/9 years) and can categorically say that companies like easierdebt are NOT the way to go.
Creds hate them as you are paying them money that could be helping clear your debt, in many cases the cred will refuse to cut interest. These companies can and do go bankrupt taking your money with them. *Some* tell the client what they want to hear NOT the truth. They are a SALES company and are SELLING a pipe dream. You have no way of knowing if the poster is genuine, it's not unheard of for the forum to be subtly spammed with posts by staff posing as peeps who've been helped.
Over the years we've met many people who have paid for years and been left much deeper in debt and with charging orders on their property.
BDL is the best place to turn to.
You say that bankruptcy is out because of your wife & her family. There are a lot of peeps here who mistakenly have felt that only to find their partners/family are a lot more understanding than they thought.
Does your wife know what your financial position is?
It would probably help us more if you could follow the newcomers thread and tell us more about your finances.
Jayne
Senior Member
Re: Inland Rev / VAT problem...
Reply #10 - Yesterday at 11:34am
When I found this board I could not imagine going B either.
But spent months finding out and weighing it all up.
I've been in business and self employed - I've actually never been in debt to I.R or VAT. - well not to any great extent anyway.
I have the impression that these are companies you MUST always pay along with your council tax and your rent/mortgage.
I have been a little behind with them - I have found - generally I think (I could be wrong) they are regarded as perferencial creditors for 6 months wortth of debt so get very anxious if debts are more than 6 months old - but if the debts are just due NOW you many be able to agree to make regular payments over 6 months. I have done this before with the IR (but not VAT) and I have defaulted on the repayments to the IR - but caught up with them again - isssued new cheques.
My advise would definately be to contact them ASAP and talk with them - try to come to an arrangement.
It may still be that you need to go B. - I don't know your full situation. But if you can get and arrangement with the I.R. it will give you a little bit of thinking time so you have a few weeks or months to research you options with out being so desperate.
I would add about wife's family - and divorce - don't worry about distant relatives and friends and acquaintences - who are just fair weather friends - they are not paying your bills, they are not keeping you in a job. You have to make your own way in life. If your wife is a true partner then your relationship will have ups, downs and difficulties but you will stick together.
Otherwise she is just fair weather friend too - perhaps your better off without her. Don't try to keep up with the Jones's as they say, cut your cloth - realistically...
My wife is not "fair weather"; she is is someone I love, and is suffering this nightmare with me, but from whom I want to protect this pain as best I can.
"Fair weather"?? I need constructive comments here, not naive, unsubstantiated, negative comments such as this.
Sorry folks, but I think I'll go elsewhere if this is the best I can expect.
Thanks anyway.
bing
Administrator
Re: Inland Rev / VAT problem...
Reply #12 - Yesterday at 7:35pm
I suggest you re-read Jayne's post collizz. She is not saying that, only covering the 'if's'. I hardly feel your response was fair in the circumstances. People have given you their time freely in order to try and help you.
If you feel you are not receiving the advice you want to hear and wish to go elsewhere, then by all means...
Otherwise, I think an apology by be owed to Jayne.
Up to you.
Bing.
« Last Edit: Yesterday at 7:36pm by bing »
brando
Full Member
Re: Inland Rev / VAT problem...
Reply #13 - Yesterday at 7:39pm
Hi Collizz
Very sorry to hear about your troubles, you have found the right place for good advice and as far as I can see that is what you have started to receive here, the guys have already armed you with the knowledge to avoid the Robdogs who would try and sell you a dodgy DMP, so I think you should give them a bit more credit.
Quote: Jayne,
My wife is not "fair weather"; she is is someone I love, and is suffering this nightmare with me, but from whom I want to protect this pain as best I can.
"Fair weather"?? I need constructive comments here, not naive, unsubstantiated, negative comments such as this.
Sorry folks, but I think I'll go elsewhere if this is the best I can expect.
Thanks anyway.
I don't think Jayne was being negative or niave, to go through this you have to go through some pain and ask awkward questions of all aspects of your life, we have all been there and many are still going through this.
If you think sorting this out should be easy and not require some horrible questions to be asked then I think there is some naivity on your part.
Rest assured that you will receive some great advice here and people will do all they can to help you out, remember people are dedicating their own time to help others and are asking for nothing in return (unlike those DMP Robdogs).
Stick around and keep posting, you will be glad you did.
Regards
Brando
confused.com
Gold Member
Re: Inland Rev / VAT problem...
Reply #14 - Yesterday at 7:43pm
Quote from Jayne on Yesterday at 11:34am: If your wife is a true partner then your relationship will have ups, downs and difficulties but you will stick together
In fairness to Jayne, who is a well respected regular member of this forum, your comments are rather harsh as this is not quite what she was saying. I do fully understand the pain of debt but Jayne and all the others are here to help.
I speak on behalf of myself and Mrs C who have both been through this debt nightmare too. At first, I tried to protect her and battle on as best I could - I come from an age when men protected their women and saved them from any hurt. However, I soon learned that indeed it was Mrs C who had the time to research our problem, ask questions, look at our finances and we got through this mess by sharing the responsibility. I'm not suggesting you're not already doing this, but if your marriage is strong like ours (and it sounds like it is), you will get through this TOGETHER.
Why not have a look at the 'welcome to newcomers' thread as previously suggested. After submitting the information to the regulars, we can then answer any questions you have regarding property and debt. Of course, it's entirely up to you and you are free to visit other forums etc. However, I would say that being a regular visitor to most debt forums in the UK, DHUK has got to be one of the top sites for advice AND friendship and believe me, debt is a lonely place and having friends who've already been through this WILL help you and your wife.
Please do come back, Jayne, myself and many others will only be too happy to offer our advice AND support to you BOTH.
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