Hi debtfreewannabee

I would have hoped that the IP could have explained the position with HMR&C.

Very simply, any tax that you are due as at the date of the signing of the Trust Deed will be a claim. Even if this has not yet been calculated, the Revenue and IP will agree a figure up to the date of signing. If you have made any payments prior to signing, then this will be offset agains the tax, leaving a balance as a claim in the Trust Deed.

In effect, any tax you are liable to pay will be from the date of the Trust Deed onwards.

Hope this helps

Mark

Hi Mark

Thank you very much for answering.

I was going to ask my IP but it was worrying me so thought I'd jump on here first 🙂

I think you're saying that the payments on account due on Jan 31st 2011 and Jul 31st 2011 for the current tax year (2010/11) will be reduced to cover only earnings in the period from the date the trust deed is signed (this week) until 05/04/2011.

I'm trying to work out how much I'll have to pay at the end of both January and July of next year.

Thanks again.

DebtFreeWannabee

Hi debtfreewannabee

yes, you're correct. It only covers the post TD period.

You're accountant could do some projections, which should be fairly easy.

I'm sure it will all work out.

Regards

Mark

Thank you Mark.

It's great to have an expert confirm what you were thinking yourself.

What a great resource this is 🙂

Cheers again.

DebtFreeWannabee

Hello DebtFreeWannabee.

I just wanted to welcome you to the forum and say thank you for your kind words. Everyone involved in the site is genuinely pleased whenever we hear that a visitor to the website has found it to be useful.

Best wishes with your trust deed and please let us know how everything goes.

For anyone else reading who is concerned regarding their self-employed status or tax debts, you can read more at:

https://www.trust-deed.co.uk/self-employed-company-director.html

Thank you TDA.

Today was a milestone. My wife and I signed the TD.

Sure it's not a place we wanted to be in our lives. That said, I could not be happier today.

And better still, I was able to fire off a letter to one of the credit card companies I've been dealing with to say (very politely of course), please don't contact me again, contact ___ instead. That was a wonderful feeling.

Thank you again for your advice. I'll post back as things progress because I found reading other peoples stories very useful when I was deciding what to do.

Cheers,

DebtFreeWannabee

Hi DebtFreeWannabee.

I'm glad to hear that you feel a sense of relief today. Well done on taking such a major step to move your financial situation forwards.

Your continuing to share your experience here would be much appreciated as we know from speaking to many this website's visitors that the sense of support from other people facing up to similar financial challenges is equally as important as the expert advice provided by Julie, Kevin and Mark.

Thanks again TDA - I'll certainly post back as things progress.

In the meantime, I have another question that I thought of and I'm sure it would help others too.

While researching online, I have read conflicting information about whether it's possible to remain as a director of a limited company while in a TD.

Is it simply not allowed at all by law, or does it actually depend on whether it's disallowed by the Articles of Association of the company? Or maybe it's something else?

Again, thank you.

Cheers,

DebtFreeWannabee

I wanted to double-check the answer to this question a few years ago and was taken aback by the mass of conflicting information available on various websites. So I called Mark instead!

My understanding is that you can continue to serve as a Director, though according to the company's articles of association there may be some steps that need to be taken.

One of our experts will, I'm sure, shed further light on this soon...

Thank you TDA. That's what I was thinking too.

I guess if it's not enshrined in law then it's going to come down to what the Articles of the company allow.

Cheers,

DebtFreeWannabee

The insolvency legislation in scotland only refers to sequestration inthis regard - and makes clear that it is not possible to be director of a ltd co and an undischarged bankrupt. There is no such bar on being a director whilst in a protected trust deed.

As I understand it, however, there is a regulation buried somewhere in the Companies Act which states that a ltd co director entering into an insolvency arrangement should resign their post. There is nothing to say that the individual cannot resume their directorship as long as it is allowed under the company's articles of association though.

Sorry if this is not a clear answer, but it is a bit of a grey area. Essentially, it is possible to be director of a ltd co whilst in a protected trust deed, though in order to strictly comply with company law it may be necessary to resign first/amend the articles of association of the company to allow it.

Thank you Kevin.

That has given me food for throught and something tangible to investigate.

Again, thanks.

Cheers,

DebtFreeWannabee