Getting Ready and Daughter

christmas_baby

Soooo glad your daughter got through everything yesterday:T, i'm sure i speak for others too when i say sometimes the fear of the unknown is the worst part of going BR, it really isn't as bad as we all fear, ( this is coming from someone who is a real worry wart,didn't sleep, didn't eat, had constant headaches for weeks before my BR), however as i said before your daughters stress will hopefully now start to lift & she can start to enjoy a debt free life.

Once the OR's interview is over, she will be able to relax too, if her case is straightforward she mightn't hear from them again, tell her to plan ahead for when the year is up, something to look forward to, maybe you & her could go away together for a short holiday or a spa day/weekend.

I have found the BR journey so far a very sobering experience, i will NEVER get into the mess i was in before & i now account for every penny i spend, this experience has taught me a very harsh lesson but i am looking forward to being debt free.

Your daughter is very lucky to have u for support, my mum is the same, i don't know what i would have done without her!!

I wish your daughter all the best as she goes through her BR journey. Love & hugs to you both.x:)

gettingready

Thank you xxx

We have another hurdle to get over.

And not sure what to do about that.

She was running a business that she did not register anywhere (!!!! naive like hell).

There was no gain, only loses but for tax purpose no idea how to account for that.

All debts were business related but there was no registered business as such.

Go figure.. sigh....

As well as running that unregistered business (B&B) she was also working in 2 separate places at the same time and paying tax and NI on both jobs.

But the B&B was not registered. She had information that is she is renting out up to 3 rooms, she does not need to regiser the house as B&B. BUT I think it should have been registered as a business/self employed whatever for tax purpose?

Again, go figure.. sigh...

fiveyearplan

My bankruptcy was due to my business. I didn't have any accounts and I told the OR that when I had my interview and he asked why and I said I couldn't afford the accountant (indeed my accountant was one of my creditors!). He was fine with that explanation.

tyllwyd

It sounds as if she was running the business as a sole trader - if so, she should have been registered as self-employed and paying tax under self-assessment. The best thing to do is probably to post in the Cutting tax board, give full information on the dates when she was running this business, and get advice on the best way forward. Make sure you mention that she has filed for bankruptcy. Definitely get some more advice before contacting HMRC so that she doesn't accidentally make the situation worse.

gettingready

Thanks a lot. At work now but will dig into it later on in the evening when I am back home.

christmas_baby

I agree with tyllwyd, you need to make a few enquiries with the relevant departments, She really should have registered her business, small as it was, She needs to be completely honest with the OR regarding this when they contact her, they will find out.

I'm sorry i can't advise further as i've never been in your daughters position but i'm sure someone else will post soon to try & help. It's for her own good to be honest & upfront with the OR. love & hugs to you both.x:)

gettingready

Oh, there is no question about potential dishonesty - just terribly naive I am afraid and genuinely messed up big time because of that

All on the paperwork so available to see by OR, just not sure how to approach it from the Tax Office side.. sigh...

Will try to ask when suggested.

Thanks a lot

TheGardener

I'm not sure if this can help but isn't there a 'rent a room' scheme that enables a property owner to let out spare rooms and take rent upto £4,250 before it has to be declared for tax? Would what she was doing constitute this? or was this proper B&B like a hotel?
It might be that this scheme is what she was thinking about when she thought she didn't need to register?

http://www.hmrc.gov.uk/individuals/tmarent-a-room-scheme.shtml

gettingready

Thanks - she took info from something similar to that

Previously, it was only
necessary to register if there were more than three bedrooms for guests

http://www.bedandfed.co.uk/B-and-B-Guidance.pdf

As there was only 3 rooms, she assumed she never had to register (banging my head against the wall here)... as business.

And because she also worked 2 jobs (PAYE) - she did not think she had to register as self employed.... (banging head again)

gettingready

OR just called my daughter, said she should get a letter by next week Wed and they will have a phone interview in 2 weeks from now.

As we suspected, the situation with house/BB is an issue/question mark as nobody can get their head round this one.

All the rest was called "straighforward".

So now we are waiting for the 2 weeks phone interview...