Struggling to pay my income tax

chipsandpeas

I'm self-employed. Last year I deferred my income tax payments at set them back to zero. So Basically I'm a year behind. I owed the £7,500 and it will be due on 31-01-12.

My problem is I'm skint, I simply can't pay. I will talk to them next week, but has anybody got any advice for me. I know I should have been putting money away, but with the pressures of my wife studying full-time, raising 2 kids and simply not earning enough, it's all gone pear-shaped.

I owe £20K on credit cards too. Would the easiest thing to do is sign the house and car over to my wife and declare myself bankrupt?

I need help.

antonic

Speak to HMRC and explain the situation, you never know they may surprise you.

Hope things work out for you.

easy

Well you will need to call HMRC and explain. I think their immediate reaction will be to set up a payment plan for you, which means that they will expect you to start paying them an amount each month. You may have some chance to negotiate how much that is, but it will need to be a realistic amount, and it will have to be paid regularly.

They will be adding interest onto th £7500, and possibly a late payment fine too (although you MIGHT avoid that if you contact them very soon, and can make a first instalment payment before end Jan .

Good luck

CLAPTON

chipsandpeas wrote: »

I'm self-employed. Last year I deferred my income tax payments at set them back to zero. So Basically I'm a year behind. I owed the £7,500 and it will be due on 31-01-12.

My problem is I'm skint, I simply can't pay. I will talk to them next week, but has anybody got any advice for me. I know I should have been putting money away, but with the pressures of my wife studying full-time, raising 2 kids and simply not earning enough, it's all gone pear-shaped.

I owe £20K on credit cards too. Would the easiest thing to do is sign the house and car over to my wife and declare myself bankrupt?

I need help.

signing the house over to the wife will be reversed by the official receiver if you go bankrupt:
if you are serious then seek professional advice; CCCS, Payplan, CAB etc and go over to the debt free wannabe board and look at the bankruptcy section

chipsandpeas

Thanks everybody, spoke to the HMRC today and though I couldn't sort out my problem today, I've got the number of their "Debt Help Dept." and I'll speak to them as soon as I know my full outstanding amount in a week or so.

Never again am I going to get in this mess.