Need to get this off my chest....

Walter_J

Its great news that you've got your head together and can see your way out. You actually sound very excited about it - a lesson to us all when times get tough!

Couple of words to the wise, however...

Buy the car on HP with minimum deposit rather than taking a loan out or using up your cash reserves. Under a hire purchase agreement the car belongs to the finance company until you make the final payment - until then you are merely hiring it from them.

So if things don't work out in your negotiations with HMRC and you are forced into bankruptcy anyway, you'll get to keep the car and your livlihood as a taxi driver. As the car doesn't belong to you it isn't an asset, and the HP company isn't a creditor as you don't actually owe them money at any time during the agreement. The payments to the HP company would be allowable expenditure as you quite obviously would need the car for your work, and this would reduce the liklihood of you having to make payments to your creditors during and after bankruptcy.

Be very careful about the new tax liability that is going to accrue from your projected earnings of 50k a year as a taxi driver. It would be awful to work your togs off for two years paying off your old tax bill only to to become liable for a new one of a similar amount! Of course most of your takings are going to be in cash so there may be a solution there somewhere.;)

Best of luck John, and keep in touch.

JPS29

Hi Walter,

cheers for the positive comments.

Fully understand what you mean about the deposit however I think that the big deposit may be what has helped me get the finance in the first place.

Post been today and no papers/info pack from licensing dept so I'm off there today, how they will wish they just sent me the pack, if I'm going to see them fact to face they are going to be bombarded with a mountain of questions:p

I know what you mean re the NEW tax but all i can say to that is that with the help of this board, the good people on here, and some fantastic willpower,(did i mention I haven't drunk for 8 years:j :j )
I will never be in a position of debt again. A portion of my new earnings will be put away in a high interest account, to work for me, then pay the tax off.

Also you mention that the cash handling will help me with my tax, my take on this is that I will pay for everything cash, fuel etc, and all my takings will be cash, should i lose any of these receipts getting in and out of my taxi;) I'm sure my accountant will see me right:D

Right, going to phone the tax man now. Huge mug of coffee here at my side, so should be coming back with a yes or no to an agreement soon.

Will update you all, wish me luck..........

tigerfeet2006

Will be keeping my fingers crossed for you.

JPS29

Hi Tiger,

Thanks for that.

Quick update.....

25 mins after being in a queue spoke to a lovely girl who has now given me another 0845 number to ring to discuss a payment plan, she even wished me luck!!

Fingers crossed again.......

tigerfeet2006

Still keeping 'em crossed then.

AmIdone4?

Me too ................

Toon_Dave

Good luck John..

You seem to have got your head in the best place now, its funny in a way to read the first posts to now to show how much you have already sorted and how much clearer things are after a few days of talking and advice..

i said it before and i'll say it again that this forum and site is absolutely fantastic...

Well done everyone and Good luck.

Dave.

AmIdone4?

Totally agree Dave

JPS29

Update number 2....

after waiting in another long queue to "Debt Management team" I have now been told that I need to ring my local debt management office:mad: :mad:

Now off to ring West Cheshire Debt management, anyone got any dealings with them?????

Poo ing myself now incase they ask me about the VAT outstanding, I only want to discuss my personal tax.......

At least its a 01925 number, not a bloody 0845.


Off I go again........

Waspeze

Starting to get cramp now with these crossed fingers!!!