HMRC have a help desk at most of the main tax offices which will help you finalise your accounts if you cannot afford to pay for an accountant and do not have the ability to do it yourself. This will also link in with your claim for Child Tax Credit as well.
You should only pay creditors now if you can afford to, and if you are going to pay anything make sure it is on a proportionate basis.
I was always taught that as the VAT money was received you really ought to always pay i.e. You had the money actually paid to you which really should have been put to one side. i.e. He can put you in prison???
I have just paid a VAT bill in full which became liable as became due from sales of assets to settle secured lending. Therefore I felt it was correct to pay him in full??. I have never allowed VAT to form part of the DEBT repayments so IMO that was correct.
At that point I was not actually even considering BR.
The VAT liability that is currently showing is from ongoing business sales so I will probably just leave this as an asset for the OR.
I have always run the business this way. Where I suppose the temptation is to take the money and settle other debt I suppose in a way have I been preferential???
HMRC have no preferential status these days, but there is an argument that the money you owe them was never yours to spend in the first place. Given that the amount you refer to is relatively immaterial in the great big scheme of things, whatever you do is unlikely to be too relevant.
The VAT bill I just paid was £3000.00. i.e. managfed to sell a fair bit of assett. I had it in my VAT appotioned area. As you say the money is the HMRC's as soon as the payment is handed over. You are just holding it in Trust.
Should I declare this VAT and the actual settlement of some creditors i.e. section 3.6 as a preferential on my form, i.e. I sold some assets and settled debt. However it was not with the direct intention of improving a position I just was trying to remove monthly payments to try and keep my business a float? I just don't like the wording on the form as it is basically asking you to confirm if it was done with the express intention of making their position better. More it was done to just get rid of some debt
A bit of guidance on that would be great additionally at this point he words BR had not even been uttered by me. I just want to know if I should declare it. I have detailed it all in my reasons for decalring bankrupt.
Sounds like bankruptcy is exactly the sort of fresh start you need right now. Make sure you let us know how you get on at Court and the outcome of your OR's meeting.
Sorry another question. It says on my Secured lending that I must not allow for a petition for Bankruptcy to be rasied against me. It is for some equipment and Van that I have.
Secured loans/HP?
Posted - 30 March 2008 : 17:14:21
