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Tax bill - shinloa hitting the fan
downnotout
Posts: 606 Forumite
Hello,
I am in quite a desperate situation, I have been trying to cut my debts down for months, but now I have a problem that seems to have cut short my hopes of making it out of this mess. I have about 12k of debts owing to various suppliers following the collapse of my business last year. I closed around the time I should have been doing my self assessement, which I never did because I had no idea what I was doing. Yestarday I got a letter from HMRC stating that I had to pay 4,212 pounds by 6th october or they would press ahead with distraint. I have no assests to sell, I lodge with my parents and have two mouths to feed plus my own. I have managed to get a part time job, but this really dosent go all that far. I was looking at an IVA but my understanding is that you have to owe 20k? bankrupcy is something i want to aviod if at all possible. I have just started a degree at Uni as a student nurse so I have no idea on the long term affects on my carreer. Please can some one help me out.
I am in quite a desperate situation, I have been trying to cut my debts down for months, but now I have a problem that seems to have cut short my hopes of making it out of this mess. I have about 12k of debts owing to various suppliers following the collapse of my business last year. I closed around the time I should have been doing my self assessement, which I never did because I had no idea what I was doing. Yestarday I got a letter from HMRC stating that I had to pay 4,212 pounds by 6th october or they would press ahead with distraint. I have no assests to sell, I lodge with my parents and have two mouths to feed plus my own. I have managed to get a part time job, but this really dosent go all that far. I was looking at an IVA but my understanding is that you have to owe 20k? bankrupcy is something i want to aviod if at all possible. I have just started a degree at Uni as a student nurse so I have no idea on the long term affects on my carreer. Please can some one help me out.
TOTAL AT START £13606.90 27/03/2018
TOTAL CURRENT £13445.90 29/03/2018
TOTAL CURRENT £13445.90 29/03/2018
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Comments
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No advice I'm afraid but I'll bump you in the hope that someone will help.
I can identify with the business collapse stuff so good luck and don't give up.0 -
Okay if you haven't done a self assessment the inland revenue will make a figure up and make you pay that. This figure may include payments on account as if you were trading on, which you haven't. It will also include fines and penalties.
You MUST do a self assessment. If you call them and tell them you are going to submit a self assessment, give them a time when you will submit it and they will put all proceedings on hold until you have submitted a self assessment.
Once the assessment is submitted you can then arrange for a payment plan to repay anything you owe them. They have only sent this letter as you obviously haven't responded to their letters up to yet.
This is not an impossible situation.
Did you have an accountant who dealt with your self employed accounts.Quality is doing something right when no one is looking - Henry Ford
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Try ring this number
http://www.hmrc.gov.uk/pbr2008/business-payment.htm
They are not all bad and here's a very good chance they will make an arrangement for you to pay by installments.0 -
I couldn't afford an accountant, the whole business made a loss from the first to last day. Payment on account? I have two entries for that on my statement. What are they?TOTAL AT START £13606.90 27/03/2018
TOTAL CURRENT £13445.90 29/03/20180 -
Okay basically this is how it goes....if you were a sole trader.
You trade you have sales and you have expenses.....sales less expenses = profit. As a sole trader you are taxed on the profit. No profit = no tax.
However, if you haven't submitted a tax return the inland revenue will assume you have made a profit and you will be taxed on the profit they make up....(yes they do do this!)
As well as the profit they assume you have made, as a sole trader you have to make a payment 'on account' of assumed future profits.
If you have not made any profit while you were trading then you will not owe tax and a submitted self assessment will make all this go away.Quality is doing something right when no one is looking - Henry Ford
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Try ring this number
http://www.hmrc.gov.uk/pbr2008/business-payment.htm
They are not all bad and here's a very good chance they will make an arrangement for you to pay by installments.
You can do this but you do need to know if you owe anything first...and sarlirip is right they are all right..Quality is doing something right when no one is looking - Henry Ford
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Whenever I have contacted them they are very helpful. If you don't contact them they cannot help and that is when it gets sticky.0
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Thank you so much for your help Sammy. I really appreciate it.TOTAL AT START £13606.90 27/03/2018
TOTAL CURRENT £13445.90 29/03/20180
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