Hi marine engineer

Good question. If you work almost on a self employed basis and pay tax at the end of the year, then this will be taken into account in calculating your net income. In addition, if you sign a Trust Deed, then any tax due in the current financial year will be a claim in the trust deed up to the date of signing.

Mark

This is something I have to keep explaining to KPMG - they look at my bank statements and think I earn more than I say I do because they forget I have to put some of it aside for tax!

Do i have to supply tax returns to prove to the creditors i have paid the tax each year?

Hi marine engineer

No, not the creditors. However the Trustee would need details of this for annual reviews etc.

Mark

What would happen the years i work outside and i qualify tax exempt that year?

Hi marine engineer,

As Mark said it fairly straight forward and easily to calculate for the purpose of working out your net income. It's your Trustees job to review this and then advise your creditors.

Sounds like your having a tricky time fcwalker. If someone takes the proper time to sit down and work things it there shouldn't be a problem. Where the problem can be is that some of the big firms that complete 800-1,000 Trust Deed's per year don't perhaps have staff who understand how to work things like that work out. They need to run it almost like a call centre as opposed to having skills qualified advisors as your relationship manager.

Can you give us an idea of your current situation marine engineer and we can give you some advice on what options you may have available to look at? Do you have any assets i.e. car, house, what you think your total debt is and also how much you feel you could afford to pay to a plan per month if you didn't have to pay your debts.

The main thing to do when considering a Trust Deed or any other option is to sit down with an advisor in person to work through your situation in full.

Hi marine engineer

The easiest way to look at it would be that matters would be reviewed and any change in income and expenditure would be assessed. If you were exempt from tax, then your net income would increase and therefore likely your contribution amount, however any increase would also have to take account of any additional expenses etc.

Mark

I have roughly 37000 debt and 34900 pa salary, i usually don't pay tax, as i mainly work overseas, i have roughly 1900 outgoing a month on mortgage, credit cards, loans, house insurance etc, i also support my partner as she is from south africa and we are trying to get visa's etc, i find myself in my overdraft more and more but the time i am at sea i can rebuild the cash to pay off my overdraft but always end up back in it when at home due to expenses of this visa process. On paper though i am still left with £200 disposable so i doubt i could qualify for a trust deed as i still have disposable income.

Hi marine engineer

The best way is always to sit down and look at all the options and see what best suits.

It may be that the Trust Deed would work on the basis of the £200, but to increase if there is additional income or tax free income etc.

The figure of £37k will be difficult to deal with over a reasonable period of time without some formal solution in place to at least stop interest and charges etc. There are always options, it's just a case of finding which one best fits.

Mark

Hi Mark i think its you i have a meeting with tomorrow at 3pm.

Hi marine engineer,

Best thing to do is sit down with an advisor.

Good luck with things. As Mark said there are always options it's just finding the correct one which suits you best.

Let us know how you get on.

Hi marine engineer

I did think it was a bit of a coincidence. We can have a chat through things tomorrow and work out some plan. I'm sure it will be fine.

Mark

That's good marine_engineer.

You can hold him to what he's written here!

It was only when i looked on your avatar i seen your second name and thought i think i am speaking to the guy i will see tomorrow! 🙂