Welcome to the forum skintagain.

Windfalls will typically be used to help repay your creditors. The most you'll pay will be your debts, interest on the debts, and the trust deed fees/costs.

If the debt to your accountant existed on the date you signed your trust deed it can be included. Your accountant is unlikely to be fully repaid.

The debt to accountant wass after i signed the trust deed does this change anything?

It does skintagain.

A new debt remains your responsibility to repay.

Thanks

If the £200 fee from the accountant was for work that resulted in a repayment of £1000 from HMRC, wouldn't it be reasonable that his fees be taken from that and the remaining £800 go to the TD?

Hi saabrina.

I can see where you're coming from. However, if the trustee didn't instruct the work they may not feel that this is appropriate.

I'd have thought that most trustees would see it that way, saabrina. If someone is self-employed and needs the professional services of an accountant from time to time then that would surely be an acceptable expense in the normal course of trading, so an allowance would have to be made for it to be paid somehow.

Presumably that's the sort of expense that would be sorted out upfront in the allowances normally Kevin?

I do agree, self-employed people are going to need help from accountants to keep their affairs straight.

Generally self employed people need the services of an accountant only once a year in order to file their tax return. As they would be billed at the time the service was used then perhaps wouldn't have thought to include such an expense in their monthly expenses. Hopefully people who are in this situation could discuss the fees/tax refunds with their trustee before hand

They should do for sure saabrina.

It is important to remember these types of occasional expenses (rather than weekly/monthly expenses) when creating the budget at the start of protected trust deeds or any other debt solution. That way a little money can be set aside each month ready for the bill when it comes.

Though setting that bit of money aside each month is much easier said than done unfortunately!