Tax debt advice please

bruciebounus

Tixy wrote: »

Do you have any joint financial products (loan, overdraft etc)? assume he rents and is not a homeowner?

I would think bankruptcy may be a viable option for him. But he needs to seek advice on this before he can decide.

Would he be likely to get work as an employed cabbie and if so how much might he earn?

We dont have any joint finances, apart from the rent of our house. He has no other creditors, not even an overdraft. I dont think he would consider being an employed cabbie.

Tixy

bruciebounus wrote: »

Hi Tixy, it really depends day to day how much he is earning, but as an estimate he is probably left with around £1500 (from which he needs to pay child support/house rent and income tax from). He had agreed to pay £200 per month towards the debt but like I mentioned that only covered the interest.

If £200 is all he can afford then unless he can significantly increase his income or reduce his outgoings then he is not going to be able to pay this debt off.
Is he now actually saving for his current year income tax, so that he can pay it as it falls due?

As said before he might want to get advice from business debtline and perhaps a debt counsellor at the CAB as well.

bruciebounus

Tixy wrote: »

If £200 is all he can afford then unless he can significantly increase his income or reduce his outgoings then he is not going to be able to pay this debt off.
Is he now actually saving for his current year income tax, so that he can pay it as it falls due?

As said before he might want to get advice from business debtline and perhaps a debt counsellor at the CAB as well.

Hi Tixy, he is currently saving for the current year. In the case of an IVA, do you know if he would qualify if he can only pay £200 per month?

RAS

Hi

People who are bankrupt can work as sole traders. They cannot act as company directors.

But you need to bang him over the head, hard, about keeping proper records.

Happytogetdebtfree

Just wanted to say hi and good luck with the tax bill hope iy can be sorted out :-)

DarkConvict

Have you given tax aid a call, if he owes the money down to poor book keeping then their is going to be nothing they can do. As £50,000 is alot and HMRC want payment within 3 years , I can only assume going BR is the best option to consider.

bruciebounus

RAS wrote: »

Hi

People who are bankrupt can work as sole traders. They cannot act as company directors.

But you need to bang him over the head, hard, about keeping proper records.

I have done!