Bev Budsworth, MD of The Debt Advisor Ltd which incorporates The Business Debt Advisor “TBDA” comments, “The numbers of self employed have increased over the years and now account for around 15% of the working population. It is not a surprise therefore that the numbers of individuals struggling with tax debts is increasing as well”.
Dealing with arrears of tax debts is not easy. HMR & C generally will pursue the strategy that tax debts need to be paid as they fall due and if not you risk getting penalties and will face action. The longer you leave it, the more difficult it is to achieve an agreeable payment plan with HMR & C.
The Business Debt Advisor team have this year seen an increase in requests for help from self employed as well as company directors (who frequently end up with overdrawn loan accounts as well as tax debts in relation to dividends drawn).
If tax debts are the only problem, it is possible to set up time to pay plans with The Revenue. Depending on your circumstances, the Revenue will normally require the debt to be paid over a period of 12-18 months. We help you to put together a realistic cash flow forecast for your business, working out an affordable offer of repayment to HMR&C which will factor in provision for future tax payments.
Our most recent success was arranging a time to pay arrangement for a client who owed Self Assessment tax of just short of £20,000. He had been unable to agree an affordable arrangement to repay this directly. He felt his limited company was successful, but that he had been given bad advice by his accountant about his personal tax liability from his drawings.
After reviewing trading figures, we helped the client prepare both trading projections for the company plus a personal income and expenditure. After providing for future tax payments in both projections, it became evident that the client could repay his S A Tax in 18 months.
After written and verbal correspondence with HMR&C a time to pay arrangement was agreed to repay the previous year’s outstanding tax, as well as payments on account for January and June 2017.
‘’I cannot thank the team at The Debt Advisor enough for their professionalism and conduct, I would recommend anyone in my situation to give them a call, they are outstanding at what they do!’’ – Client Feedback
Bev Budsworth adds, “setting up the arrangement required tenacity on our part as we had to call the Debt Management unit repeatedly to ensure they had received the authority and the payment proposals. Once these were logged onto the system, the plan was set up on the phone relatively quickly.
If you find you need some help with self assessment tax or other problem debt, get in touch. There a range of solutions depending on whether you are salaried or self employed or you are a director or shareholder of a limited company. Should you enter into a debt solution with us, fees will apply. If you would like our team to call you, please use our contact form.
All debt solutions need to be carefully considered. IVA’s are formal solutions and failure to keep to the terms can result in your IVA failing and you could end up bankrupt.
There is also free debt help and advice available through a variety of debt charities. For more information, we recommend you visit www.moneyadviceservice.org.uk.
The Debt Advisor is Authorised and regulated by The Financial Conduct Authority (reg no: 659920)