Debt Help IVA? DRO? PLEASE HELP

electrician81

fatbelly said:

Not likely. It's a last resort. Wife's assets not taken in your bankruptcy.

I've asked for the thread to be moved so more people can contribute.

Hi What do you mean wife assests not taken? so they couldn't take our home then?

No I dont have an accountant. 

surely if I go back and reduce my profit now after all this time they will become suspicious? 

sourcrates

Only assets fully belonging to the debtor can be taken in bankruptcy, a jointly owned home should not be affected.

But this is only my opinion on the matter, HMRC has far ranging powers to do what they need to do, and there may be clauses and exclusions I am unaware of.

Errors, deliberate or otherwise, should be corrected without hesitation, never mind what they might think.

You really need to get professional debt advice using the links fatbelly has previously posted.

fatbelly

With a business producing a tax bill of 30k you really need an accountant

electrician81

fatbelly said:

With a business producing a tax bill of 30k you really need an accountant

I dont have a business producing that figure im a sole trader electrician I just put that figure in as that's what mortgage said id need to achieve borrowing figures. 
no probs anyway ill muddle on looked into options are aren't any that dont cause loosing or possibly loosing my house so ill offer £500 per month for now and hope I can keep to it.

fatbelly

If you don't owe 30k in tax, sort it out now. The longer you leave this, the worse it will get

RAS

HMRC are probably more amenable to altering your tax bill if you can prove evidence of reduced profit than your mortgage provider will be if they identify mortgage fraud. 

Get an accountant now, sort it and pay the penalty.

Floss

electrician81 said:

I dont have a business producing that figure im a sole trader electrician I just put that figure in as that's what mortgage said id need to achieve borrowing figures. 
no probs anyway ill muddle on looked into options are aren't any that dont cause loosing or possibly loosing my house so ill offer £500 per month for now and hope I can keep to it.

You really need to take notice of RAS, fatbelly & Sourcrates as they have a lot more knowledge than you do.

Look into how you amend an error on your tax return here:

https://www.gov.uk/self-assessment-tax-returns/corrections

[Deleted User]

electrician81 said:

fatbelly said:

They are unlikely to escalate it while you are talking to them.

You know that if you made a 'mistake' on your tax return, you have 12 months to correct it?

In answer to your question, it's regarded as a priority debt mainly because they can use field agents (effectively bailiffs) without a court order. Ultimately they can petition for your bankruptcy, where all your assets become owned by the trustee in bankruptcy. So it's a sort of 'yes'

Do you have an accountant who helps you with your tax affairs? What are they suggesting?

this was my 2021-22 accounts so its too late now to adjust them surely?

The tax return for 2021/22 can be amended up to 31st January 2024 - you have seven weeks. 

Log into your return - choose the 2021/22 year and the ‘amend this return’. 

One word of warning - amendments do attract the attention of HMRC and increase the likelihood of an enquiry - don’t forget that you declared that the return was accurate to the best of your knowledge. In itself nothing to be very concerned about if you have detailed records but knowingly submitting an incorrect return is not advisable at all. Take advice.

katsu

What is the downside of taking advice from a source recommended by Fatbelly on page 1?

Find out what you really owe to HMRC... maybe nothing more now if you've been paying all this extra tax?  That might help you make ends meet on your other debts? 

There's a difference between what you now tell HMRC and what you've told the mortgage company in the past. 

I imagine an accountant could perhaps reassure you that as long as you pay the mortgage, the mortgage company are unlikely to be checking up on your tax returns now?  I can't see why they'd do that randomly. 

Please go get some advice as you've got this 7 week period where its easier to get this fixed with HMRC.

Good luck and either way there's help here on restructuring your other spending so I'm sure you can improve your situation. 

pelirocco

fatbelly said:

Not likely. It's a last resort. Wife's assets not taken in your bankruptcy.

I've asked for the thread to be moved so more people can contribute.

I will have to disagree with you ,HMRC  are very likely to push for bankruptcy , they don't like long term payments plans , and don't seem to care if it means they wont get what they are owed . A petition for bankruptcy can be fought , however it also gives a chance for other creditors to jump on the petition .
The OP needs some expert advice , and quickly