Finding the way through a £100k hole

Isitdoable

I think also, that mine and OHs hobbies can come out of our personal allowance, so I can trim that.

enthusiasticsaver

Can you move your bank account to non packaged? Most fee charging current accounts are poor value.

The mobiles are high. Once out of contract they could be much lower if you don't suck into this mentality of getting a new phone every few years.

Do you really need sky tv or could you do without a home phone as you have two expensive mobiles?

Energy costs are high considering you pay oil and electricity.

As presumably you don't own a property I cannot see the logic of HMRC making you bankrupt unless the business has significant assets. I hope you come to a mutually agreed arrangement.

Isitdoable

Sadly I know that logic makes no difference to HMRC....I have a hope I can cobble enough together to keep them happy but we shall see.

Energy is high, I’m not sure why 😫

We use the phones for work so I guess I should be claiming some of that back.

The bank account includes travel insurance, car breakdown and personal accident so I thought it was quite good value?

ohdearhowdidthathappen

Thought I'd repay the visit

HMRC are absolute !!!!!!s. If you have no personal assets, I'd be tempted to go down the bankruptcy route tbh and clear the £100k. It'd be a long haul to pay all that back if you're already drawing £60k per year out of £65k profit, especially if your industry is volatile.

You don't say how old you are, but you've got 2 young children, no savings and no pension. Do you or OH have any other source of income other than your business?

In terms of monthly expenses, there's quite a lot of trimming you can do; mobiles, food, personal expenses, entertainment are all very high. We pay £35 per month for 5 SIM only phones, £600 to feed 7 and OH and I only have £50pm each for personal spends.

If you search for the SOA calculator it has different categories and the format is easier to read through, might be worth a try for a really accurate SOA.

Good luck with your journey, I'll check in to cheer you on

Isitdoable

ohshithowdidthathappen wrote: »

Thought I'd repay the visit

HMRC are absolute !!!!!!s. If you have no personal assets, I'd be tempted to go down the bankruptcy route tbh and clear the £100k. It'd be a long haul to pay all that back if you're already drawing £60k per year out of £65k profit, especially if your industry is volatile.

You don't say how old you are, but you've got 2 young children, no savings and no pension. Do you or OH have any other source of income other than your business?

In terms of monthly expenses, there's quite a lot of trimming you can do; mobiles, food, personal expenses, entertainment are all very high. We pay £35 per month for 5 SIM only phones, £600 to feed 7 and OH and I only have £50pm each for personal spends.

If you search for the SOA calculator it has different categories and the format is easier to read through, might be worth a try for a really accurate SOA.

Good luck with your journey, I'll check in to cheer you on

Believe me I've been back and forward on the bankruptcy thing so many times, and it is just my pride stopping me. I've been self employed for so many years, I love it, and I don't know if I would just feel like a fraud continuing in the future when I have had to make myself bankrupt. I have another new project I am going to get started on, and I think the original business will just go to my OH now. All above board and valued correctly by our accountants so if there is a bankruptcy it does not come back and bite me in the !!!!!!

Isitdoable

I've had another conversation with HMRC this morning. They are being very helpful to be fair, and are still talking to me and keen for a resolution. Speaking to them on a regular basis also helps my mind a bit as I feel more in control of the situation.

ohdearhowdidthathappen

It's tricky, isn't it. My brother had a similar situation 8+ years back, although he was a home owner and it didn't involve HMRC. For 4 years, he ploughed on repaying creditors etc and then 1 lost patience and forced him into bankruptcy... he had to sell his house and all those 4 years were for nothing. He's still gutted about it now as he's been discharged now, he sees those original 4 years as a waste of time and effort.
I agree though, ideally always best to repay yourself and I really respect the mindset and pride that's pushing you to do so.

Isitdoable

ohshithowdidthathappen wrote: »

It's tricky, isn't it. My brother had a similar situation 8+ years back, although he was a home owner and it didn't involve HMRC. For 4 years, he ploughed on repaying creditors etc and then 1 lost patience and forced him into bankruptcy... he had to sell his house and all those 4 years were for nothing. He's still gutted about it now as he's been discharged now, he sees those original 4 years as a waste of time and effort.
I agree though, ideally always best to repay yourself and I really respect the mindset and pride that's pushing you to do so.

I feel like at least if I have tried, I can look myself in the eye and know I have done that. Sometimes I think I'm crazy, sometimes not :rotfl:

I'm smashing through the work budgets tonight, and I am feeling fairly positive. Just a lot of diligence and hard work over the next year needed.

Isitdoable

In an effort to give us a boost on the household finances, I now have a big pile of baby stuff to Ebay. Everything I make will go straight off one of the cards.
OH has some collectibles that he has not touched in about a decade....I'm getting them valued - they are doing absolutely nothing for us sat in the loft, and no one really wants them. I have dreams about them being worth £75k but I'm thinking probably not!

Isitdoable

A long time since updating but mostly because I have been flat out working.

On recommendation, I have started reading The Millionaire Next Door'. Fascinating. And so insightful as to where I have been going wrong my whole life!! It's sinking in.

-HMRC, we are still talking. I have two weeks to put together proposals. Working on that.
-Waiting for my tax return to be done by accountant. This will probably not make me happy
- have a pile of eBay stuff I am currently photographing
- have a company who will value OHs collectibles, just need to arrange that
- Need to go to ALDI and see what changes we can make, grocery bills are horrendous, I have to start making inroads into this!

I feel a bit overwhelmed today if I'm honest. I've not lost my determination, but the mountain looks big today