Loan for tax debt

Loanadvice

Hi please can someone advise?
I have a £150,000 tax debt to pay.


My question is please, will I be able to borrow the money for this reason? If so who from, as I thought mortgages can't be for business.
The tax debt is against my business self employed. However I can afford to pay this loan from my wages at work?

If I can't raise the funds the hmrc can make me sell my house for less.

[Deleted User]

A remortgage would appear to be the only possible solution.

miketaff1408

Sell House

Rent smaller house

Pay tax bill

Put aside money for tax from then on. You must have been living the life of riley if you owe 150k in tax. The earnings you must have made to owe that amount means you could probably afford to buy a new house outright within a year.

Loanadvice

Thank you for offering an opinion on my life style. I presume you must know me as you seem to judge without information.
I am happy to remortgage I would like to know if is possible for this reason. For a tax debt?
I intend to pay the tax bill (with it's included added interest and penalties) my tax is up to date other than this settlement that is coming soon.

I was just politely asking can I remortgage for a tax debt?

Pixie5740

The Mortgage and Endowments board has a few mortgage brokers who regularly contribute. You might get an answer there as I'm not sure if you can remortgage to pay a tax bill. If it is possible then it sounds like the best solution for you.

Voyager2002

My immediate thought: is the tax genuinely owed? If your business had made enough profit for a six-figure sum to be due as tax, then the profit should be around somewhere, and should be far more than needed to pay the bill|: unless, as a previous poster assumed, you had spent it all on high living without even paying off a mortgage that by comparison was little more than small change.

In that situation professional advice would make sense... and a tax professional would be in a better position to know how mortgages work than would random strangers on bulletin board.

My uninformed suggestion: ask about equity release mortgages. If the figures work out and you have twelve years in which to repay both the original mortgage and the additional borrowing then funds should be available.

Loanadvice

The tax is due to the new rules of the IR going back 20 years yes we have had tax advice.
I will post on the mortgage site, thank you.

antonic

As others have said, have you made sure that the debt is correct ?

If it is have you asked HMRC for a repayment arrangement for this debt ?

For that sort of amount HMRC will take enforcement action against you to get full payment.

HappyMJ

Loanadvice wrote: »

The tax is due to the new rules of the IR going back 20 years yes we have had tax advice.
I will post on the mortgage site, thank you.

That doesn't really make any sense. New rules would only affect your tax from then on...they can't tax you on previous years income if you've been paying the tax on the rules as they stood at the time and they create new rules. I'd be setting up a payment arrangement to pay it off over time to the HMRC rather than take out an interest bearing debt and paying more over the longer term.

The HMRC can take a charge over your house to ensure payment but it's very unlikely they'll force you to sell it at any price if you are making serious attempts to repay the debt.

antrobus

HappyMJ wrote: »

That doesn't really make any sense. ....

I believe that one should assume that these tax 'rules' are 'new' in the sense that the OP was either (a) not aware of them, or (b) chose to ignore them.

The references to the "tax bill (with it's included added interest and penalties)" that is "going back 20 years" suggests that the OP has been the subject of a reasonably thorough tax investigation into the tax returns for his business. The fact that HMRC have decided to go back 20 years tells you that they have concluded that he deliberately understated his tax liability.

Loanadvice

After working 60 hours a week in employment and 20 hours at weekends physically for the last 20 years this is all finally coming to an end due to mistakes my wife made on the weekend work paperwork I have been left in debt due to the tax issue. It has also destroyed my life, my health and my marriage , and now as hmrc can go back 20 years if you make mistakes! It is affecting my future.

I have found out from this site that a mortgage broker can help so that at least is good news, now I just have to work to retirement to pay it.

Thanks for being here to ask questions of.