I have been reading this site for the past few days and the advice on here for other people has been great and I have learned a lot from this. I’ve been the Director of my own Ltd Company for the past 4 years after the Government legislation effectively closed down Multi Service Company schemes. I chose the Limited Company route as this was the most tax efficient route, as I am sure many others in my situation did. This had worked alright for me as I was putting money aside every week to meet my Tax payments as they became payable. But this year I don’t have enough put aside for paying the Corporation Tax because the money I normally put aside, I’ve had to use for personal purposes. My end of year accounts show that around £13K will be due to pay, I have not submitted the End of Year accounts yet. I was hoping that I would be able to come to some sort of payment plan with HMRC to pay this in instalments. The problem is HMRC recently contacted me and asked me to submit Self Assessment Tax Returns for the last 4 years. I didn’t realise that I had to do these (I know ignorance is no excuse) but after doing them it turns out I owe HMRC another £12K in tax. I have called them to try and agree a repayment plan, but they have refused and have now submitted a Notice of Distraint! I called them again to plead with them to allow me to pay it off in instalments and this debt is only there because it has built up without my knowledge. Had I known I would have budgeted to pay it off when it became due. They will not budge and have demanded full payment immediately and have threatened me with Bankruptcy!! What would happen to the Corporation Tax debt, (although accounts not filed yet) my Ltd Company and my SA Tax if they make me Bankrupt? I am still working through my Ltd Company, should I go PAYE or Umbrella, or should I open another Ltd with my wife as Director and me a shareholder? If I become Bankrupt will the OR take my wife’s income into consideration as my monthly income, she is not currently working but in case she created a Ltd? Would she become Bankrupt with me or remain unaffected? We don’t have any joint accounts.I live in a rented house and don’t really have any assets of any value, just a car worth around £1K. If I petitioned for BR myself, would that stop the Distraint? Would I get in trouble for the using the money that I should have put aside for the Corporation Tax? What will the OR ask me?Please, please, please any advice would be very much appreciated.

just wondering if anyone knows im going to court tommorow for bankruptcy,two weeks ago hmrc sent in an afficer to my house and they put a distraint walking possesion on my car,which now the auctioneers are going to come and pick up on thursday.if i get my bankruptcy order tommorow will they be able to take the car?

i have a outstading debt from overpayments from 2004 with tax credits up until may i was paying them £100 month to clear it but when the overtime finished at work i have not paid them.on thursday i got a visit froma n officer who took down details of my outgoings and incomings anjd also at the same toime put a distraint order on my car which i use for work and childrens school drops. My ex partners car was also parked on the drive which he leaves hear as we are quite ammicable with each other and even though i told the officer it was not mine he took details of this car too whcih is worth alot.he told me to fax over the log book and insurance documents for proofe of ownership and also any receipts of the sale of the car which i have,however the insirance policy is in my name and my ex is named driver we did this as i had 11 years no claims which would work out cheeper for him. My question is will they take this car and mine which is only worth about £400 after 5 days whcih is the time they have given me to pay the balance of £140,000 ,which clearly i will not be able to pay.my ex is furiuos as this car is worth £15,000 which he paid for and hasa receipt to proove,but because the insurance is in my name im concerned they will take it! I am very stressed about all this and do not know what they will do,i have faxed to them today all the paperwork for the car,so they can see its not mine.can someone please help me as i am so stressed i just want to keep crying all the time. Will they let me carry on paying as ive told the officer i would be willing to start paying again,please can someone advise me.

Hi, I am new to this forum and hoping someone can help me. I have been struggling to pay my tax bill and have been paying the last bill in installments regularly. When the latest bill came through in March i phoned them up and asked if I could pay in installments they said someone would get back to me. No one phoned and I had no further letters so I continued to repay 1000 per month. On Wednesday someone knocked on my door from the tax office and I thought they were coming to discuss my case so let them in.(big mistake) He issued me with a Distraint order to take my car, computer and tv. The car is essential to my work as I am freelance and need to carry my tools to do my job. The computer is also essential to my work. Reading online I was meant to have had a warning letter that this would happen to give me chance to sort things out- I didnt get one. I phoned the tax office to try and come to an arrrangement but they said I have only 5 days to pay in full or my goods will be seized, I also asked for the date of the last letter sent to me and they confimed it was March 2012. Sorry for waffling my questions are: Can they do this without warning? Can they seize goods that are essential to my job? Is there anything I can do to put a hold on the distraint order while this is sorted out? Thanks

Hi guys, I wonder if someone can help me. I am self-employed and last year had a tax bill of around £6000. A tax inspector visited my property and put a distraint on my recreational vehicle. During that year I managed to - with the help of CAG - delay removal, thwart the bully-boy baliffs and reduced the debt to £800 by February this year. All of this time the distraint remained on the vehicle. Now that I had a run of contracted work I was able to employ an accountant to assess my tax from the previous year and also file my return for this financial year. She deduced I had been taxed £1800 more than I should have been. This cleared the debt to the HMRC and reduced my latest tax bill to just £600. Work has dried up and I am unable to pay the debt. The bully boys are e-mailing and sending threatening letters demanding that I pay or they will act upon the distraint and seize my vehicle. I have two pertinent questions: i) The distraint was executed in regards to a debt for the tax year 2009, this has now been cleared. Can they still act upon it, for a further debt? ii) The debt is £600 and my vehicle is worth £5500. I read somewhere they could only seize assets that were less than 5x the amount of debt? Am I correct in thinking this?