Self Assessment and Bakrupcy

codesmith

Hi All,

The long and short of it is that I owe HMRC around 23k in self assesment, from when I was contracting in 2013. I have enough to make a serious dent in the bill in one go (between a third to half of it). However I can only pay the rest back over time (around 2 years). From what I read, it seems like HMRC are only interested in payment plans that last less then 6 months.

Is it worth even proposing such a 'long' payment plan? or should I start mentally preparing myself for bankruptcy.

egrescrimp

I would approach them with a written offer, if you can stump up a large sum and then propose a fair monthly amount you might be able to get them to do a longer term repayment plan.

It may need to go through a few rejections and departments at first though

codesmith

Thank you egrescrimp, alot of sleepless nights at the moment. It seems that they do sometimes agree to longer term payment plans, but I can't tell what the deciding factor is. I'm currently a full time employee, no assets for them to seize, but my salary can cover a payment plan over the time I suggested. I also fail to see what my bankruptcy would gain them (if it came to that). The 2 year term is really all I can afford.

codesmith

Update,

it turns out my student loan deductions where included in that 23k, the debt is now smaller (around 14k). Additionally the student loans company have been erroneously taking deductions from my income for years. After speaking with them I'm owed a refund of around 6k, which should take the debt down to around 8k.

With the amount being so much smaller, are HMRC more likely to accept a payment plan?

Thanks in advance.

National_Debtline

Hi codesmith


Going by your original post where you said:

codesmith wrote: »

I owe HMRC around 23k in self assesment, from when I was contracting in 2013. I have enough to make a serious dent in the bill in one go (between a third to half of it).

Now that you are expecting a debt nearer £8K after the student loan rebate, doesn't this mean that the lump sum you expected to be able to pay will more or less wipe out the remaining balance?


Please let us know if anything has changed since your initial post, or for that matter if you think I have my sums wrong!


Thanks


Dennis
@natdebtline