Looks like bankruptcy for me.................

novak1984 · 15 May 2018 at 9:16PM

I've been trying to reach an agreement with the HMRC for paying off a large sum of money owed.

The figure they want is approx double the amount of tax owed due to penalties and interest.

Long story short. I have no assets. They want it paying within 12 months which i cannot afford. I have provided them a income/expenditure and an amount i can pay per month. However, it would take 7 years to pay it off at this amount.

It appears they would rather make me bankrupt then getting money back. I want to pay the money back but can only afford the amount i have proposed, but they are going to send it to the solicitors office now and looks like they will probably make me bankrupt (i assume thats what happens). I still find it bizarre they would rather get zero then X amount of 7 years, but they tell me that's the way it is.

So the employment i am in, i will lose my job and obviously puts me in a bad position to pay anything back.

I am not sure what my next steps should be........any advice welcome.

John-K_3 · 15 May 2018 at 9:36PM

Can you borrow enough to pay it off?

When you say that you have no assets, do you not have any electronics that you could put on eBay, old books or CDs that you can sell or similar?

Can you get a second job, pub work at the weekends, for example?

novak1984 · 15 May 2018 at 9:46PM

John-K wrote: »

Can you borrow enough to pay it off?

When you say that you have no assets, do you not have any electronics that you could put on eBay, old books or CDs that you can sell or similar?

Can you get a second job, pub work at the weekends, for example?

Thanks for the reply. However i would need a lot of CDs.

We are talking 220k (116k is actual tax). I've offered 1800 per month and they aren't interested.

sourcrates · 15 May 2018 at 11:07PM

novak1984 wrote: »

Thanks for the reply. However i would need a lot of CDs.

We are talking 220k (116k is actual tax). I've offered 1800 per month and they aren't interested.

I would suggest you call National Debtline and get more specific advice on your personal situation.

I don’t think your offer is that bad to be honest, they may be able to get your voice heard.

National_Debtline · 16 May 2018 at 10:36AM

Hi Novak

novak1984 wrote: »

I've been trying to reach an agreement with the HMRC for paying off a large sum of money owed.

It appears they would rather make me bankrupt then getting money back. I want to pay the money back but can only afford the amount i have proposed, but they are going to send it to the solicitors office now and looks like they will probably make me bankrupt (i assume thats what happens). I still find it bizarre they would rather get zero then X amount of 7 years, but they tell me that's the way it is.

So the employment i am in, i will lose my job and obviously puts me in a bad position to pay anything back.

No easy answers to this one. HMRC are quite a particular creditor in that they will often pursue bankruptcy as a matter of policy, regardless of whether this actually recoups any of their debt. Your payment proposal would no doubt be readily accepted by many creditors, but HMRC are a case apart in this respect.

At this stage I can only recommend that you begin making the payments you've already offered and make them aware that you are doing so, as well as pointing out (if you haven't already) the adverse effect bankruptcy would have on your employment.

Dennis
@natdebtline

maxmycardagain · 16 May 2018 at 6:26PM

HMRC are cold heartless soul less swines

they kept after £10K they said i owed, BR stuffed em on that

they send their own collector out, ours was slower from the front door to the gate than our dog...

maxmycardagain · 16 May 2018 at 6:28PM

at least if they make you BR you save £700+ in fees

roughsea · 16 May 2018 at 7:13PM

I was also part of a bankruptcy due to HMRC and after years of worrying, it was the best thing that happened.

It's a very easy process and did not affect me in my daily life but instead took some time off from work and reduced my hours due to all the stress of HMRC.

1 year soon passes and I am now discharged and it feels great

I would advise paying for the bankruptcy as HMRC can drag it on and looking back would have been quicker to do it myself rather than wait nearly a year for HMRC to do it

John-K_3 · 16 May 2018 at 8:13PM

It!!!8217;s hard to see how you can owe so much and yet not have kept on top of it but yes, they will likely make you bankrupt. If nothing else it serves as a warning to others who may consider delaying payment, or spending the money which was supposed to be paid in tax.

There is really no advice to give here, if you cannot raise the money then they will likely make you bankrupt.

What happened?

maxmycardagain · 17 May 2018 at 8:21PM

John-K wrote: »

.

There is really no advice to give here, if you cannot raise the money then they will likely make you bankrupt.

What happened?

I doubt they will, they get nothing that way, they will keep pestering you though

Gemsy81 · 17 May 2018 at 9:46PM

I think with HMRC it really depends who you get dealing with it. Some of them are great, some of them not so much. From experience, I know their protocol is to have it paid back within a year - sometimes they will negotiate slightly longer, but not to 7 years I doubt. Its all about ticking boxes with HMRC, and they don't want an unticked box for 7 years.

If it was me, I would apply for bankruptcy myself to keep some control over the situation. Its not the end of the world, and I can imagine the relief of having £200k + of debt off your shoulders would be more than worth the initial discomfort. Good luck.

Looks like bankruptcy for me.................

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