Loan to pay HMRC

Grumpelstiltskin

JayJSeymour said:

When you say SOA - do you mean my HMRC statement of account?

We have no assets that do not have some form of credit. A car but with car finance outstanding. The house - we have tried to sell it twice but with no success. It was bought for £400k 17 years ago and is only worth £415k now. You could say we have been unlucky in that regard...

Read that thread I linked you to and you will see the link to the SOA, you need to fill it in honestly and post it on here.

ChillyP

JayJSeymour said:

When you say SOA - do you mean my HMRC statement of account?

We have no assets that do not have some form of credit. A car but with car finance outstanding. The house - we have tried to sell it twice but with no success. It was bought for £400k 17 years ago and is only worth £415k now. You could say we have been unlucky in that regard...

Hi, 

This is the link for the SOA. I found this a useful process. The budget that I had in my head was very different to what I saw on paper! Wishing you luck. It sounds as though you deserve a break
https://www.stoozing.com/soa.php

JayJSeymour

Thanks folks - I will fill the SOA in and post it back. I am very humbled by all of this.

I have tried so hard to get back on my feet and on top of things, some form of insolvency would just bring it all tumbling down again and really impact my family. I dont care about myself so much. I will either have debt to pay for the rest of my working life, or not have any meaningful employment because I cant do what I was trained to. So I have to focus on my family and not me. I'm a lost cause.

It might be tonight/tomorrow before the SOA gets done.

MattMattMattUK

JayJSeymour said:

Hi all.

I posted this on Loans category but was advised to put it in the debt section - I am not sure if this is now the right place?

I am overdue £49k income tax.

I am due other debts and am on a payment plan to RBS. They have placed default on my credit file - credit score is around 535.

I need to get a loan to pay off as much of the £49k as possible asap. I earn £110k, my wife £125k. I am 50 years old.

I have c.45k equity in property - £370k mortgage, property value £415k. Jointly owned.

It is a condition of my worker status that if I am declared bankrupt (or any other form of Personal Insolvency) I cant work in this sector anymore. So none of my debts are paid and I end up unemployed, family not provided for etc

1. I presume I am going to be credit scored out of a personal loan of any kind of decent amount/interest rate?

2. Is there any secured loan provider that could provide a secured loan over property up to 100% LTV?

3. Is there any reliable lender that would provide a loan secured to my pension? You can tell me "dont do it" but I need to know all options.

I have called HMRC to try and get a payment plan. Advisor told me to apply online as she knew what I was asking for would get rejected if she referred it. I am looking for two years minimum to pay. I was self employed am now employed - this will not be a recurring issue in future tax years.

Any info appreciated.

You have a post tax household income of £12,535 ignoring pension contributions which would reduce it, based on your age and mortgage amount you probably have payments of around £2,500, that should mean that there is more than enough spare cash to clear this in a year, two maximum, on a payment plan with HMRC. 

MattMattMattUK

JayJSeymour said:

Thanks folks - I will fill the SOA in and post it back. I am very humbled by all of this.

I have tried so hard to get back on my feet and on top of things, some form of insolvency would just bring it all tumbling down again and really impact my family. I dont care about myself so much. I will either have debt to pay for the rest of my working life, or not have any meaningful employment because I cant do what I was trained to. So I have to focus on my family and not me. I'm a lost cause.

It might be tonight/tomorrow before the SOA gets done.

I mean this as a serious piece of advice, do your best to care about yourself as well! Nearly everyone has to face mental health difficulties at some point in their life, staying motivated to help a partner, children, parents etc. is all well and good, but it does not help with the underlying issue and it can feel very draining, as if one is carrying a burden.

If you still feel that you are a lost cause then I implore you to seek professional help, your GP, a private therapist, whatever works for you, but please seek out professional help. 

EssexHebridean

JayJSeymour said:

When you say SOA - do you mean my HMRC statement of account?

We have no assets that do not have some form of credit. A car but with car finance outstanding. The house - we have tried to sell it twice but with no success. It was bought for £400k 17 years ago and is only worth £415k now. You could say we have been unlucky in that regard...

I think that line I've emphasised in bold should probably act as a bit of a red flag to you.  While it's very true that people often do live up to their income - and certain areas of employment that come with high salaries can also come with an expectation of a certain form of lifestyle being lived too - your income is more per month than some here would see in the best part of a year, so there is unquestionably scope for you, going forwards, to be cutting your cloth and ensuring that you save for things rather than using credit. the SOA will be an incredibly useful exercise as it will mean that all your income and expenditure will be laid out in front of you, and more importantly, you will be able to see what surplus your priority bills and budgeted discretionary spending leave you with each month - that often surprises a lot of people. 

I really would strongly suggest that a loan is absolutely the worst way forwards for you at this stage. Not least as you're not going to get anything unsecured at that value and any sort of sensible interest rate. The best approach is to work out a payment plan with HMRC, but if they say "A year" then you need to be aware right now that 12 months is precisely the time you have to get it sorted - you can't be going back to them in 11 months time and pleading for more time. In that case then just knuckle down to a very lean year where the lifestyle has to get cut to the bone, and get it done though. HMRC really will go for bankruptcy if they get messed about, so once a plan is set up you really must stick to it. As already said, you are at least in a position where there should be sufficient surplus able to be created to make that doable. 

JayJSeymour said:

<snip>

We do have the income to service a loan to pay this off it is just about getting that loan - even to pay half of it off as a lump sum now.

I have two guaranteed "bonus" payments due in Sept and May 25 - of £10k and £8k (before tax).

The first paragraph above - what do you mean by the bit in bold - that you have half the money owing in savings? If that is the case, then hold back 5k of it as an emergency fund and offer the balance to HMRC as a starting payment to reduce the debt. 

As for the bonuses - nothing is guaranteed until the money is in the bank, so put those right out of your mind for the time being. 

JayJSeymour

EssexHebridean said:

JayJSeymour said:

When you say SOA - do you mean my HMRC statement of account?

We have no assets that do not have some form of credit. A car but with car finance outstanding. The house - we have tried to sell it twice but with no success. It was bought for £400k 17 years ago and is only worth £415k now. You could say we have been unlucky in that regard...

I think that line I've emphasised in bold should probably act as a bit of a red flag to you.  While it's very true that people often do live up to their income - and certain areas of employment that come with high salaries can also come with an expectation of a certain form of lifestyle being lived too - your income is more per month than some here would see in the best part of a year, so there is unquestionably scope for you, going forwards, to be cutting your cloth and ensuring that you save for things rather than using credit. the SOA will be an incredibly useful exercise as it will mean that all your income and expenditure will be laid out in front of you, and more importantly, you will be able to see what surplus your priority bills and budgeted discretionary spending leave you with each month - that often surprises a lot of people. 

I really would strongly suggest that a loan is absolutely the worst way forwards for you at this stage. Not least as you're not going to get anything unsecured at that value and any sort of sensible interest rate. The best approach is to work out a payment plan with HMRC, but if they say "A year" then you need to be aware right now that 12 months is precisely the time you have to get it sorted - you can't be going back to them in 11 months time and pleading for more time. In that case then just knuckle down to a very lean year where the lifestyle has to get cut to the bone, and get it done though. HMRC really will go for bankruptcy if they get messed about, so once a plan is set up you really must stick to it. As already said, you are at least in a position where there should be sufficient surplus able to be created to make that doable. 

JayJSeymour said:

<snip>

We do have the income to service a loan to pay this off it is just about getting that loan - even to pay half of it off as a lump sum now.

I have two guaranteed "bonus" payments due in Sept and May 25 - of £10k and £8k (before tax).

The first paragraph above - what do you mean by the bit in bold - that you have half the money owing in savings? If that is the case, then hold back 5k of it as an emergency fund and offer the balance to HMRC as a starting payment to reduce the debt. 

As for the bonuses - nothing is guaranteed until the money is in the bank, so put those right out of your mind for the time being. 

I don't have savings no - but my mum may have savings. She is 75 though, so I dont want her to be short of cash at this age. Anything might happen to her.

I will get my SOA sorted and posted.

Thanks for the advice so far everyone.

Grumpy_chap

JayJSeymour said:

I don't have savings no - but my mum may have savings. She is 75 though, so I dont want her to be short of cash at this age. Anything might happen to her.

I agree with you that bank of Mum is not a good option.

Try to take heart that you have made the first step by starting this thread.  
People here will do their best to offer constructive advice - you may not like it all.
Take one step at a time - the next step, as you acknowledge - is the SoA...