Been now advised to declare BR but I have some concerns/questions

Sandgrownun

Hi - thanks to everyone that has helped on my previous threads, CCCS have now said that BR is the best option which I thought but I have some worries..

1 - I'm going to declare late April/May as I won't be missing a mortgage payment until then as on a break, I am currently pregnant and going on mat leave May ish, due 07/07/13 - I really need to sort out going to court before I'm likely to go into labour at any time, so if I declare at the start of May end of April then how long to get to court? Don't really want to be about 39 weeks pregnant and being stressed at court!

2 - so re IPA or IPO, for the first 6 weeks of mat leave I will earn roughly a normal wage but after that it'll go to about 30% for a few weeks then reduce to nothing for a while. So when I first declare it'll seem like a surplus but actually I got an IPA put on I'd never be able to pay as there would be no surplus from my wages after a few weeks - will they put one on or look at my maternity year for an average? I'd average about £600 a month without child benefit.

3- my most worrying thing and keeping me awake at night. 3 years ago I moved out of my house (1 bed) in a panic whilst 6 month pg - my friend gave me the chance to rent a much bigger and nicer house for around £200 less than mortgage. I got tenants but I did not get permission for NRAM. I made a loss of at least £100 every month, no profits therefore I did not pay tax - however should I have still declared? I've not benefitted financially. Is this a criminal offence that's going to get me? I'm very scared.

Thanks so much for all the help already - thanks for reading:o

Mouse1812

Don't worry about no 3 - you only have to notify HMRC if you have a source of untaxed income. No profit means no income.

No law has been broken, and even if it had you did not "intend" to do anything wrong so it can not be criminal.

I'll leave 1 and 2 to others to answer.

Sandgrownun

Mouse1812 wrote: »

Don't worry about no 3 - you only have to notify HMRC if you have a source of untaxed income. No profit means no income.

No law has been broken, and even if it had you did not "intend" to do anything wrong so it can not be criminal.

I'll leave 1 and 2 to others to answer.

Are you defo sure? As that would be a massive relief because it's been a major contributor to my sleepless nights recently! I'm really worried about somehow omitting something vital when discussing with the OR or putting my forms in, should I tell them about the back story - e.g. the renting out etc?

tiggerbodhi

Hi, will answer as best I can, but depends on your area of the country a little..

1. You fill in the forms and take them to the court, you are normally seen that day and declared BR at the same time, you then have an interview, normally over the phone a few days or most a couple of weeks later, some courts you ahve to turn up and queue on specific days, others you make an appointment, just phone them and ask, as an aside you can stop paying the Mortgage now, helps to save for the BR and Baby.

2. You will do a SOA as of the day you go Bankrupt, if there is a surplus an IPA will be put in place, this can take a couple of months to sort out, when your income and outgoings change you call the OR or Moon Beever (their collection agents) and it is reviewed and altered, any IPA is NEGOTIATED between you and the OR or MB, it is not just imposed.

3. agree with Mouse 100% nothing to worry about, you maybe broke your T's and C's of your mortgage agreement, well that is nul and void as you are being re-po'd, HMRC won't be bothered as there is no profit, as for the OR tell them everything, they won't judge you or tell you off, the one thing with the OR is it is "cards on the table" time.

Good luck

Sandgrownun

Ok thanks so much. I guess from that just tell them absolutely everything, and they might ask me to pay something for 6 weeks when there'll be a surplus of money on my side of the household bills, but after that there'll be a deficit and my OH will be paying? Then they can decide, I'd only actually be able to pay for about a month though so they may not bother?

Sounds like its decided by an actual convo with someone rather than a computer generated payment thing?

Mouse1812

Sandgrownun wrote: »

Are you defo sure?

After 26 years working in tax, yes 100%

Sandgrownun

Mouse1812 wrote: »

After 26 years working in tax, yes 100%

Ha ha thanks so much. Was sure I was going to get some kind criminal charge! X x x