My Debts + undeclared offshore income!

zombie

I have been in a DMA (PayPlan) for nearly 4 years now and not missed one payment. Still owe approx £55K ish. All creditors except NATWEST have waived interest.

Now I have another problem in that I received some substantial money from my late mother and stuck the cash into an offshore account in 1992. I told my accountant under the tax come-clean rules and it looks like I will have a hefty tax bill to meet. Unfortunately all that cash has been spent on living over the years! So, I have nothing to show for it.

The tax people don't give you time to pay, they want it when it's due and that's when the Baillifs come knocking.

Could Bankruptcy be a way out to relieve this situation?

If not, could the tax bill be dealt with by the DMA (PayPlan) and spread over a number of years until fully paid? They can't get blood out of a stone!

The house is in my wife's name (fully) and has been since we got married. A wife is not responsible for her husband's debts (and vice versa), unless of course they are a business partnership.

I would be very grateful if anyone has any ideas or suggestions for this pickle I'm in. People have commited suicide for less!


Thanks


zombie

rog2

You, or your accountant, should be negociating with the HMRC. It would be extremely unfair of them not to allow you to pay 'on account'.
I do not think that bankruptcy would be a viable option - that said, you haven't mentioned what sort of sum is involved, as you would risk losing the investment as well.
I suggest, if your accountant is not already doing so, that you get some professional advice.
You can try the following link, which is a charity set up to advise on tax matters: http://www.taxaid.org.uk
Good luck.

CCCS_Emily

Hi Zombie,

A word of warning re bankruptcy... Even though the house is in your wife's name, because you live there and have contributed to the household, you would be affected by something called 'beneficial interest'. This is where the Official Receiver could concider up to 50% of the equity in the property to be yours, because you have contributed to the upkeep of the property, bills, maintainance etc.

You need to try and get an arrangment in place with the Inland Revenue asap and speak to Payplan as soon as you know how much you owe, so it can be allowed for in your budget.

Keep us all posted and good luck.