inland revenue

Hi Paul

Sorry to read of your problems with the IR. This is particularly difficult when self-employed.

Also sorry to have to say that generally F&F settlement offers are not effective with priority debts, i.e. debts to creditors who have strong legal remedies available to them, e.g. Repossession, Eviction, Attachment of Earnings, Freezing of bank a/c's, CCJ's, Bankruptcy, Imrisonment.

Sometimes F&F offers may be accepted in respect of long-outstanding arrears of such debts, but usually other recovery action will have been taken well before this status is reached.

If your self-employment would be viable if you didn't have these debts and providing you do not own/part own the property where you live or your business premises, if any, then Bankruptcy is well worth considering.

You could continue with the same self-employment, provided you traded in the name in which you went bankrupt, and the business assets such as equipment, machinery, tools, vehicles, stock would be still available for use if shown to be necessary for continued trading. Ongoing expenses and liabilities would still have to be paid, of course, but debts outstanding at the date of bankruptcy would be written off subject to your ability to make any instalment payments during the period of undischarged bankruptcy (usually 1 yr in England & Wales).

Other factors may come into play if you have previously been bankrupt or if there is evidence of fraud or other illegal activity.

It is advisable to get professional FREE advice and assistance prior to and during the bankruptcy process, particularly when a business/self-employment is involved because of the additional financial records and paperwork.

There's loads of FREE help and info available. Check out the bankruptcy links in my other posts on this subject.

Very best wishes, Graham B

Well more of a ratification than anything, but the WiseSteward hit the nail on the head as there is no way the IR would accept a F&F settlement - otherwise hundreds of self employed citizens would start saving a lump sum and not pay their taxes then try to offer part of the lump sum in settlement!

So they can't take the risk of this - they are more likely to enforce the debt via repossession, attachment of earnings, charging orders and bankruptcy etc

The IR will vote on IVA's however, but by the sound of it you can afford to pay the arrears and you would be best to carry on living a cheap lifestyle until things get better.

Beans could be an option, blue stripe for 7p a tin or something