An unfortunate turn of events for you, Freedom and I can easily understand why you paid those funds to HMRC. Unfortunately your trustee firm is right, those funds should really have been declared to your trustee first as it isn't your decision to make to pay them directly to HMRC.

How much are the figures involved? If your income would have been less had you been taxed correctly in the first place maybe you could make a case that your creditors have already had the benefit of this extra money by receiving higher contributions than would have been available otherwise?

Thank you so much for responding Kevin very Kind.

Its £1900.00 net(Bonus) I did not pay full amount. Total Vehicle tax £3024.46p my adjustment in code leaves me to pay £1124.46 -HMRC advised my code will be adjusted accordingly to collect through my salary.

I want you to be aware that I feel like shouting down the phone however I have been very calm biting my lip as well as sadly to say in an undignified manner pleaded with her.

She seem's to be quite determined after my call last Friday that this will stand. It just does not make logical sense.

My thought now is to leave my Job, Go self employed and reduce my income to the original amount set at the start in 2012.

I have lived on the income for the past 3years 8 months all I have done is pay the additional monies and bonus which I can understand and which I agreed to.

This situation so close to the finish line seems not fair.

My intention after the trust deed certificate was received I would go self employed anyway my customers have asked me to consult on their behalf.

My question is this?

Would that force another review and a reduction in pay thus reducing time of closure or am I to late.What do you think of going self employed?

How come it is a 2-year extension then, Freedom? If the figure you paid to HMRC was only £1124 and you have been paying £252pm, then surely only another 5 payments would be required to compensate for that?

What happened to the remainder of the £1900 bonus?

Hi Kevin,

£1900.00 was my total net bonus. I paid all to HMRC. Total Owing to HMRC was £3024.00 now its £1124.00 ballance.

Just to update you and after reading other Forum posts as well as talking to another advisor in Glasgow called Trustee and insisted to speak to senior manager.

Outcome seems to have resulted in more favourable position. He advised that his colleague(Minion) should not have stated that I would be in for an additional 2 years. He also asked that I disregard error in correspondence.

What he said was that the £1900.00(Bonus) should be 50% of pay i.e. thus £950.00 is what needs to be paid back thus only 4 months extra.

However in the same breath he advised that he would be looking into this further and with no Promises will come back to me regarding additional £950.00.

Seems to be now moving in right direction...really have learnt a lot from posts on Forum. My lesson for the day is don't be rude just be firm and speak up for yourself for to long have just been the yes man thinking that I have no rights and have been embarrassed about this situation for to long.

Really want to thank you Kevin and this forum.

No problem, Freedom. That makes a lot more sense - glad it seems to be coming to a reasonable conclusion.

Thanks for coming on and sharing your experience with us - it serves as a good example for others to be aware of. Any bonuses need to be declared to your trustee and while it might make sense to you to use the funds for something else you really need to run it past your trustee first otherwise could end up in a pickle.