Urgently need loan for paying overdue tax

essexreboot

I've been a complete idiot and buried my head in the sand for a long time about my self empyed accounts and tax returns and now things have come to a head and i have to find £3500 to pay HMRC before i get taken to court.

I've been reading the site on and off for years and fairly intensely for the last few days looking for information and trying to find my best way out of the hole i have dug myself in.

I'm on a joint mortgage with a relative, have virtually no savings, my business is going terribly at present and i have moneys owed to me that would cover the tax bill, but collecting it and clearing the cheques will take too long to help me to pay the tax bill.

I've exhausted all the avenues i realistically have and i've been looking this weekend trying to find out if i would be able to get some kind of loan to give me enough time and space to give myself a kick up the backside and stop burying my head in the sand.

I've had credit before when i was a student, and ended up paying that off until around a year ago after falling behind with it a few years back. I have a barclaycard with £250 on it which has stayed the same for some time, a Virgin card with £1500 which is in a similar situation, and when applying for a loan 6months or so ago to consolidate my bank overdraft and credit cards and give back some money i had been lent i was refused credit and decided it was best not to keep applying.

Although i want to try and bring all this out in the open with those around me i really can't face it and although i feel ill thinking about it i have been wondering if some kind of secured loan on my house is a possibility, but i am a joint holder on the account with a member of my family.

I'm sitting down and trying to go through all my accounts and tax returned etc and post on the boards here for some wisdom in the next few hours and in the next day or two, but this money owed to HMRC is the most pressing thing.

Does anybody have any advice for me, thank you in advance

jenni1188

Go over to the debt free wannabees forum and write a staement of affairs they will help you more than me but looking at the things you say,

Self employed
Missed payments on past credit
No savings

Do you have a regular income?

Good Luck

iolanthe07

Try negotiating with HMRC - they may well be prepared to accept payments on account if they know your situation. If you're up front with them they are not usually unreasonable (and no - I am not a tax collector!)

essexreboot

Thanks for replying. I'll have to look at writing a SOA.

I have a regular income but recently it has not amounted to much, probably in the region of £600-800 per month. My main problem right now is having ignored things for so long and being owed thousands of pounds.

If i was paid up to date tomorrow i would be able to pay the HMRC but i still have other problems i need to sortout and start getting things together.

I'm in the process of going through and completing the tax returns i am owed, which will help in the HMRC being more giving regarding the monies owed.

I am currently a headless chicken running around trying to fix things and take responsibility.

Kez100

If the tax being demanded is estimates and penalties get those returns completed and in as quickly as possible then you will know exactly what the level of tax and class 4 is. Until then you may be borrwing to fund something not really due.

If the tax being demanded is accurate, obviously you need to get it paid or come to some sort of payment arrangement with debt recovery as well as bringing your returns up to date.

essexreboot

I'm nearly done with my prep on completing my 03/04, 04/05 and 05/06 returns and i feel hugely relieved as i can't possibly owe anywhere near what's been estimated.

03/04 is when i started the business (during Christmas '03) and turnover was ~£3500 including Jobseekers allowance and Jury Duty Allowances but that's before ~500 expenses. That's only £3000 left so i should be left with no tax to pay and no NI.

04/05 turnover was ~£9500 with expenses of ~£4500, although i've got to check through that and exclude non-allowable expenses. The largest expenses are those for items bought for customers and then claiming fuel allowance of 4000miles. I've estimated a final profit of around £5500, so presumably i will have ~£110 worth of Class2 NI and then ~£100 Class4, plus ~£80 tax.

05/06 turnover was ~£10,500 with expenses of ~3500, again i need to rule out anything not allowable, but most is spent on supplies and components for clients, then another 3000miles of fuel allowance. Approx final profit is ~£7500 so i work it out as ~£110 Class2 NI, ~£280 Class4 NI and ~£260 Tax.

Adding all that up should be under £950 owed in total not the £4000 that i had been estimated and is the cause of most of the panic i've had.

Hopefully i can clear some cheques in the meantime and just pay it and start being more organised about all this.

paddyrg

Gary, your loans are pure spam, and most likely pure scam too.

Apples2

I hate Gary even more for making me read such an old thread.

KingElvis

Wonder if the guy owing the tax has been in pokey yet?