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Her Majesty’s Revenue and Customs (HMRC) oversees various tax-related debts, including VAT, National Insurance, and income tax arrears. Timely resolution of these debts is crucial, as they are classified as ‘priority debts’, subject to severe consequences such as court action, bailiffs, and, in extreme cases, imprisonment.
Formulating a budget is pivotal in debt management. Begin by assessing personal monthly business income and essential outgoings, encompassing mortgage or rent, utilities, and food expenses. Deducting essential outgoings from income yields disposable income, forming the basis of feasible debt repayment.
Open dialogue with HMRC is paramount. Contact HMRC to establish a regular payment plan tailored to your financial capacity. While HMRC aims for debt clearance within the financial year, negotiating affordable payments based on your budget is essential.
Struggling with debt is never easy, and you might not know where to go for confidential debt advice. That’s where we come in. MyDebtPlan is dedicated to helping people deal with serious debt.
Tell us about your current debts and one of our experienced and friendly advisors can help you get the ball rolling.
Dependant on your circumstances and financial situation, we'll let you know if an IVA is a potential solution for you.
If you qualify for an IVA, we will take the necessary steps to set up and arrange this for you.
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Credit Score Pop Up Wording : An Individual Voluntary Arrangement (IVA) is a formal agreement with creditors to repay a portion of your debts over time, but it does have an impact on your credit score and it will be difficult to obtain further credit whilst on an IVA. Once an IVA is approved, it is recorded on your credit report and will typically remain there for six years from the date it starts.
However, it’s important to note this is the case for most debt solutions and your credit score will likely already have been affected by being in debt in the first place.
Once your IVA is complete you will get a fresh start to begin rebuilding your credit rating.
IVA costs are charged for the preparation of your proposal and the administration of the arrangement for the full term (usually 5 years) these costs are charged from the monthly contributions you make into the IVA and are not in addition. Costs will only be recovered on approval of your arrangement and once you commence making payments to it. The fees for preparation of the proposal to creditors and calling the meeting for creditors to vote on its approval are called nominees fees, the fees for running the arrangement once approved are called supervisors fees. There are also some expenses incurred in the running of the arrangement such as the registration fee and the statutory insurance that needs to be taken by law, these are called disbursements. For our arrangements, the total of all of these is £3,650 although this may be adjusted by creditors when they vote on whether to accept. No matter what the end total of costs come to, you can be rest assured that these will be taken from the monthly payment we agree with you.
