Uk Tax!

dawniegood

Hi everyone,

My husband and I have a large personal tax debt in the UK which we dispute and have done for two years. The amount is massive, totally ridiculous and unjustified but nevertheless the enforcement dept continue to chase us with enthusiasm. We now live in Spain and they are threatening to transfer it to the Spanish Authorities for collection.

Are they able to do this and what implication would this present. We are not trying to run away from this debt and have been negotiating with one of the Inspector of Taxes for about two years to get to an agreed figure but it seems to be impossible and pointless.

We are considering bancruptcy as one option to end this situation. If we did this would the bancruptcy conditions apply in Spain as well as the UK.

We have no fixed assets.

Any help you can give would be most appreciated.

tight_jock

If you lived in the UK then , with no assets BR would seem to be a good option.

BUT

as you are overseas I`m afraid I Don`t know what your best option would be

Do you come back to the UK?
If so, you could get further advice from one of the debt help charities.
:beer:

jules23958

For me bankruptcy came about because the tax credit overpayment was the last straw. I was so angry that they could cheat us like this so I decided to investigate. You get a nil tax code which means in effect no only do you not have to pay the debt but they end up paying your other creditors which for me was the perfect revenge.

Richard_S

dawniegood wrote: »

Hi everyone,

My husband and I have a large personal tax debt in the UK which we dispute and have done for two years. The amount is massive, totally ridiculous and unjustified but nevertheless the enforcement dept continue to chase us with enthusiasm. We now live in Spain and they are threatening to transfer it to the Spanish Authorities for collection.

Are they able to do this and what implication would this present. We are not trying to run away from this debt and have been negotiating with one of the Inspector of Taxes for about two years to get to an agreed figure but it seems to be impossible and pointless.

We are considering bancruptcy as one option to end this situation. If we did this would the bancruptcy conditions apply in Spain as well as the UK.

We have no fixed assets.

Any help you can give would be most appreciated.

Hi dawnie,

I don't know whether the U.K can transfer your debt to the Spanish authorities but with reciprocal taxation arrangements between E.U Member Stats I'd think it was highly likely. Again, what effect that would have in Spain is not something I've ever come across.

Is there any mileage in consulting a Taxation expert in the U.K to ascertain exactly what your liability is? I know they're never cheap but it would take away the uncertainty and allow you to make an informed decision as to whether bankruptcy is the best option for you.

The Inland Revenue will ultimately commence legal proceedings against you and there are a couple of people on this forum who have been petitioned for bankruptcy by HMRC. I would definitely act sooner rather than later because it's always better to be in control of events rather than having to react to them.

Richard