I don't feel so alone now!

trying2bbrave

Hi

I have just discovered this fantastic website after my partner told me about Martin on Radio 2, he's a big fan.It's nice (in the best possible way) to know I'm not the only one in trouble, and also great to find somewhere I can get some friendly advice.

I have been on a DMP with Payplan for the last year, I owe over 50k (not including my mortgage). I'm not an angel, but the majority has been through Dry Rot at my property totalling 25k (not covered by insurance!), bad ex-boyfriends who have walked away owing etc I won't bore you, but it's been a bad 10 years and I'm paying for it now. I don't have the cash for an IVA and I don't really want to go bankrupt as I will lose my flat. If it wasn't for the latest development I could continue on the DMP for the short-term, but now I don't have the money for a priority debt and feel I'm about to lose everything.

I have managed to save, what I thought was enough, for Jan 31st Tax Bill as I'm self-employed. Unfortunately Im 4k short. All due to earning so little the previous tax year that I have to pay all of this year's and next year's bill NOW . I've rung everywhere but can get no credit. Has anyone had dealings with the inland revenue with the same problems?

I have about 20k Equity in my property which would help, but the mortgage co will not release the equity because of my earnings and won't consider a secured loan from another company (not that I really want to go down that route).

I have also been reading about the banks overcharging and believe that the recovered charges would help me an enormous amount (I'm sure I have thousands!). Also a manager of Lloyds TSB, some 3 years ago urged me strongly to get a loan out because he could see I was having problems. I believe this made the situation worse not better and was irresponsible banking. Anyway, can I, who owes them a fortune still continue to claim back my charges?

Sorry if this has been rambling, but any advice would be greatly appreciated.

Thanks:

elantan

hi and welcome to the board to answer veery quickly yes you can claim back unfair bank charges there is a forum for it here (i'm useless at links though so dont know how to tell you exactly where) also people have been reading the consumer action group website for help both of which are fantastic ...dont think you'll have it back in time for jan 31st but good luck anyway

trying2bbrave

Thanks for getting back so quickly, I know I won't get it back that quick, but in the mess I'm in I wasn't sure if it was worth even trying. Because of the debt I owe I thought they'd just laugh, take me to court and I'd be in a worse situation.

THANKS

elantan

it is totally worth trying you have nothing to loose really and this site and cag (consumer action group) are fantastic at talking you through every step of the way(ncluding templates of the letters).....as far as i know and please dont quote me on this (i'm not positive) very few people go to court ...the forums are the place to start they would help you in dealing with absolutely everything...not that we wont to get rid of you ...as i'm sure you'll find out soon this is the best forum on the site with the nicest people

anniecave

Do you really have to pay that much all at once in tax? I've no experience of being self employed but have you explained the situation to them ?

anniecave

Also it sounds like your DMP needs re-assessing, as there's no way you should have £4K spare. I'm guessing it's not that easy to change that though....
Seriously though, can this be done?

trying2bbrave

Payplan are aware I am Self-employed, but don't seem to understand it fully . I have to say CCCS, although great, didn't undersatnd at all. At least Payplan have adjusted by earning to incorporate some of it!

lynzpower

could you pop up your SOA on here, ie what you earn, and your other incomes, outgoings and your figure of what you give to payplan and what exactly you owe to the inland revenue?

there are quite a few people on here who know about tax, so they should be able to point you in the right direction?

Seaxwyn

hi trying2bbrave,

I'm self-employed too and got into debt because of tax bills!

But check your bill - is all or part of this amount for 'payment on account for year 06/07'? If so, you can get it reduced.

Payment on account is an advance payment for the current year and will be based on your previous year's earnings. If this year's earnings have been lower they will reduce the bill accordingly. You just have to calculate what you believe to be the correct figure (half of 22% of your taxable earnings in the year) and fill in a form which should be in the envelope with your bill.

I've done this twice now and both times they have accepted my figure without question. You have to be careful not to under-estimate though, as if you end up owing more, they will charge interest on the amount you should have paid.

Phone your tax office - I have always found them quite helpful.

Good luck

Seaxwyn

Batfink

I would definitely ring the Inland Revenue and explain the situation. They are very helpful and ringing before the money is due will surely make them look in your favour.

Good Luck

Batfink x

halloweenqueen_2

MR HQ had a problem with not enough money for the bill, i phoned them and they were great, as long as they know what is going on they will help you if you genuinely try to pay, there will be a bit of interest on it, but it wasn't much, they send you payment slips and regular statements. Hope it works out for you.