Really in the poo

jellebabe

I owe HMRC £11500 in income tax, having been in massive debt while self employed and not putting money aside for this. Of course they need paying, and they're putting pressure on to get caught up.

I can't get a loan, my credit rating it screwed, I really don't want to ask my family - they don't have the money but might be willing to take out a loan for me - I am loathe to ask however.

I have a car on HP, I've paid off just over 1/3, but I am a month in arrears right now.

Some months I earn a lot more, and I will through Sep, Oct, Nov.

Anyway here's my SOA, what the hell am I going to do?


Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 0

Monthly Income Details
Monthly income after tax................ 2700
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2700

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 406
Rent.................................... 925
Management charge (leasehold property).. 0
Council tax............................. 177
Electricity............................. 49
Gas..................................... 27
Oil..................................... 0
Water rates............................. 14
Telephone (land line)................... 64
Mobile phone............................ 46
TV Licence.............................. 15
Satellite/Cable TV...................... 19
Internet Services....................... 0
Groceries etc. ......................... 150
Clothing................................ 30
Petrol/diesel........................... 140
Road tax................................ 22
Car Insurance........................... 110
Car maintenance (including MOT)......... 30
Car parking............................. 5
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 7.6
Pet insurance/vet bills................. 36
Buildings insurance..................... 10
Contents insurance...................... 0
Life assurance ......................... 36
Other insurance......................... 0
Presents (birthday, christmas etc)...... 15
Haircuts................................ 15
Entertainment........................... 25
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 2373.6


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 0


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Hire Purchase (HP) debt ...... 12995....(406)......19
Total secured & HP debts...... 12995.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
egg............................995.......36........27
vanquis........................260.......11........34
capital one....................650.......15........20
wonga..........................112.......0.........0
payday express.................600.......125.......0
barclaycard....................450.......20........27
Total unsecured debts..........3067......207.......-


Monthly Budget Summary
Total monthly income.................... 2,700
Expenses (including HP & secured debts). 2,373.6
Available for debt repayments........... 326.4
Monthly UNsecured debt repayments....... 207
Amount left after debt repayments....... 119.4

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -12,995
Total Unsecured debt.................... -3,067
Net Assets.............................. -16,062

Created using the SOA calculator at https://www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using other browser.

Tixy

What years is the tax owed for?
Have you been in contact with HMRC yet? have you (or your accountant asked if you can repay the debt in installments)?

I guess you will need to work out what you can afford to HMRC (cutting back on expenditure where you can and stopping paying your unsecured creditors anything other than a token payment) and then offer that to them as a monthly payment.

jellebabe wrote: »

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 406
Rent.................................... 925 this looks high, can you find anywhere cheaper? how big is the property? could you consider a lodger to help with the bills?
Management charge (leasehold property).. 0
Council tax............................. 177 are you claiming the 25% single occupancy discount?
Electricity............................. 49 is this in arrears? it looks high, can you look around for a cheaper supplier and try to reduce your usage?
Gas..................................... 27
Oil..................................... 0
Water rates............................. 14
Telephone (land line)................... 64 why is this so high? is it calls? who are you calling? look for a much cheaper inclusive deal or consider things liek skype for calls.
Mobile phone............................ 46 look for a cheaper deal or if in contract see if you can drop down a tariff.
TV Licence.............................. 15
Satellite/Cable TV...................... 19 consider cancelling and switching to freeview
Internet Services....................... 0
Groceries etc. ......................... 150 try to reduce this a little
Clothing............ .................... 30 only buy essentials, try selling anything you don't wear
Petrol/diesel........................... 140 is this all essential travel? could you consider moving nearer to work to reduce this cost?
Road tax................................ 22
Car Insurance........................... 110 why is this so high? do you shop around at renewal for this?
Car maintenance (including MOT)......... 30
Car parking............................. 5
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 7.6
Pet insurance/vet bills................. 36
Buildings insurance..................... 10
Contents insurance...................... 0
Life assurance ......................... 36 consider if you need this if you have no dependants and if you feel you do then shop around for a cheaper deal
Other insurance......................... 0
Presents (birthday, christmas etc)...... 15
Haircuts................................ 15
Entertainment........................... 25
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 2373.6

Unsecured Debts
Description....................Debt......Monthly...APR
egg............................995.......36........27
vanquis........................260.......11........34
capital one....................650.......15........20
wonga..........................112.......0.........0
payday express.................600.......125.......0
barclaycard....................450.......20........27
Total unsecured debts..........3067......207.......-

jellebabe

I've already checked my rental contract, I'm not allowed to take in a lodger, it's just a 2 bed place, but it's an expensive area (London belt)

Have the council tax discount already, was owed from Oct 10 when I moved in

i need to get onto the electric company, the meter wasn't read when I moved in so it's on estimated useage

Telephone is internet too, I need to call and see if I can reduce the tariff, same with mobile

We don't get any freeview in the area, it's stupid!

I'm cutting back on groceries now, buying value stuff and going to lidl/aldi more.

I live a 10 min drive to work, so I'm thinking of getting a pushbike, but I'm a massive fattie, so all this cutting back should help with something!

Car insurance is high because I pay monthly and I have 0ncb, it adds loads! I need to budget so I can buy at renewal.

Life assurance is sickness protection, in case something happens and I can't go to work.



I have spoken to HMRC and they accepted monthly payments, but it's too much, they said the specialist team would be in touch but they never do, I call and you can't speak to them.
They can make an attachment to things you own, everything in the house is 2nd hand and I don't have any flashy electrical stuff.


The car is a huge expense, I've paid off 1/3, I could struggle onto paying off 1/2 which is about March 12, or risk how much they will sue me for ending early???
I would still need a car for Thurs and Saturday work though, they are a much longer drive, so finding some cash for a banger??

oldtractor

I think you could do with looking to move to a cheaper area. Do without TV its not essential. mobile and phone are very high. try to use as little as possible.

mildredalien

You might not be able to take on a lodger on a rental contract, but could you flat-share instead? Either get someone to move in with you and take on half the rent/bills etc. (get them added to the contract as a tenant) or move out and find somewhere to lodge or house-share with yourself. Splitting even just the rent would find you an extra £450 or so to play with.

RAS

Hi

When is the rental end date?

When can you give back the car without penalty?

Which of these costs are properly business costs and which are purely personal. You need to separate the two - not least so that you can get the tax benefits of the business costs.