Tax man is leaving me no option

[OllieBirmingham]

Try and condense this as much as possible. Started a business when I was 17 because I was young and naive (sp?) and thought I knew better than anyone else. Mismanaged the whole thing from start to finish and pissed and snorted any money I may have actually made. Wrapped it up and got a proper job, however due to a number of external influences (Shockingly inadequate accountant being one of them) the whole tax situation got rapidly out of hand. Upshot is, I owe them a lot of money. I am in a relatively low paying job currently and have very little money left over at the end of each month after fuel expenses, rent etc. They are demanding I pay them, I'm telling them I can't. I have offered to pay it off monthly as much as I can reasonably afford, they tell me this would take too long and is therefore not an option. They said get a loan to pay it off, I approached the bank who politely said no. They keep sending me letters of distraint, saying they will take away my assets to pay my debt, but I don't f*cking have any. What am I supposed to bloody do? Its driving me up the wall, can't barely sleep at night sometimes. Does the PH collective have any idea of a way out of this mess for me? Any help hugely appreciated.

[Zod]

You are not going to get rid of them without producing accounts to show you didn't make a profit.

[hornetrider]

You can lie, rob, cheat, steal, nick cars, do people over in the street.

But don't you ever, EVER try and fk the taxman

You're going down son. Down to Chinatown.

[BigLepton]

OllieBirmingham said:

Try and condense this as much as possible. Started a business when I was 17 because I was young and naive (sp?) and thought I knew better than anyone else. Mismanaged the whole thing from start to finish and pissed and snorted any money I may have actually made. Wrapped it up and got a proper job, however due to a number of external influences (Shockingly inadequate accountant being one of them) the whole tax situation got rapidly out of hand. Upshot is, I owe them a lot of money. I am in a relatively low paying job currently and have very little money left over at the end of each month after fuel expenses, rent etc. They are demanding I pay them, I'm telling them I can't. I have offered to pay it off monthly as much as I can reasonably afford, they tell me this would take too long and is therefore not an option. They said get a loan to pay it off, I approached the bank who politely said no. They keep sending me letters of distraint, saying they will take away my assets to pay my debt, but I don't f*cking have any. What am I supposed to bloody do? Its driving me up the wall, can't barely sleep at night sometimes. Does the PH collective have any idea of a way out of this mess for me? Any help hugely appreciated.

Start a new business and use the profits to pay off your debt.

[outlaw biker]

OllieBirmingham said:

Try and condense this as much as possible. Started a business when I was 17 because I was young and naive (sp?) and thought I knew better than anyone else. Mismanaged the whole thing from start to finish and pissed and snorted any money I may have actually made. Wrapped it up and got a proper job, however due to a number of external influences (Shockingly inadequate accountant being one of them) the whole tax situation got rapidly out of hand. Upshot is, I owe them a lot of money. I am in a relatively low paying job currently and have very little money left over at the end of each month after fuel expenses, rent etc. They are demanding I pay them, I'm telling them I can't. I have offered to pay it off monthly as much as I can reasonably afford, they tell me this would take too long and is therefore not an option. They said get a loan to pay it off, I approached the bank who politely said no. They keep sending me letters of distraint, saying they will take away my assets to pay my debt, but I don't f*cking have any. What am I supposed to bloody do? Its driving me up the wall, can't barely sleep at night sometimes. Does the PH collective have any idea of a way out of this mess for me? Any help hugely appreciated.

You can PM me anonymous details if you like and I can find out. My dad is ex high ranking customs and excise.

[Eric Mc]

Are the liabilities the Revenue seeking based on the actual profits of your former business or are they estimated "determinations" of liability?

Was your business a sole-tradership or a limited company?

[OllieBirmingham]

They have seen my accounts. They know how much profit I made.

[OllieBirmingham]

Sole trader. Just want to put it to bed and forget about it and concentrate on my new career. The point is, they are asking me to pay them £**** RIGHT NOW and I don't have the money, the ability to borrow it, or the assets to cover it.

[whoami]

OllieBirmingham said:

Sole trader. Just want to put it to bed and forget about it and concentrate on my new career. The point is, they are asking me to pay them £**** RIGHT NOW and I don't have the money, the ability to borrow it, or the assets to cover it.

Did you think it would just go away then?

[Zod]

OllieBirmingham said:

They have seen my accounts. They know how much profit I made.

in that case, you are stuffed, unless you can somehow go back and find some big losses to cancel out the profits.

[Eric Mc]

Your stuffed - sorry.

If the liabilities are real and not based on estimated profit figures, there's not much you can do. However -
did your accountant make all the right expense and Capital Allowance claims?
Is there any scope at all in reducing your liabilities?

The Revenue can and do make people bankrupt. Just look at what happened a week or so ago to Kerry Katona.

Edited by Eric Mc on Friday 29th August 20:56

[Eric Mc]

Non payment can mean a jail sentence - but usually only for very large unpaid liabilities. Ask Lester Piggot.

[Wings]

The next option open to HMR&C might be to bankrupt you, and certainly that will draw a line under many of the debts you have, and could create.

[Jonny_]

Fake your own death and bugger off to somewhere warm.

HTH

[spannerman]

anonymous said:

[redacted]

No they dont, if you go bankrupt you can include it in your bankruptcy. The only debts that you cannot include are criminal fines and CSA arrears

[Swilly]

Ummmm you have no money, you have no assets..... you have no problem !!

[mattley]

Assuming you're not in a position to dispute the amount they're after.....

Draw up an Income and expenditure spreadsheet. Make sure it's realistic (include things like central heating or car if you need it for work breaking down contingency) . This sort of documentation makes them take you a bit more seriously. Send them this along with supporting copies of all your bills and stuff, and make your offer per month.

Also make sure you tell them you're considering bankruptcy, as the only alternative and I'm sure you'll both come to a satisfactory arrangement.

Good luck.

[Eric Mc]

How much do you owe?

Are you currently paying tax under PAYE?

Have you a negligence case against your former accountant?

Was he qualified with a recognised accounting body?

Does he have professional indemnity insurance?

[mattley]

spannerman said:

if you go bankrupt you can include it in your bankruptcy. The only debts that you cannot include are criminal fines and CSA arrears

And student loans.

[krap]

If you have no assets then it might be an option to go bankrupt. If you have any savings or a decent car then pass it all over to a friend/family so nothings in your name - believe me I know!!