Archive for July, 2009

Liability for Debts and the Limitation Act

What the Limitation Act is:
The Limitation Act 1980 established the rules on the length of time a creditor has to take action (such as a lawsuit) against an individual for a debt the creditor is owed. Depending upon the type of debt the individual has, the time limits are different. In this article we want to explain when you can use the Limitation Act for unsecured credit debts.
Unsecured credit debt are debts that include bank loans, building society personal loans, catalogues, finance company loans, store cards, credit cards and other debt along these lines. In some situations people have a debt with a typical unsecured creditor and they have not heard from the creditor in quite some time. Perhaps they have even moved address or even assumed the debt had been written off.
If a letter arrives completely unexpectedly from that creditor or a debt collection agency who is telling you to make a payment you can sometimes argue that the creditor has run out of time or is ’statute barred’ from taking you to court for the debt.
This can sometimes work of if:
- The creditor has not yet obtained a judgement against you in court
and
- You or another person who owes money, if it is a debt taken out in joint names, have failed to make payments on the debt during the last six years
and
- The creditor has no written statement from you in the last six years, such as a letter, which states you owe on that debt

What the Limitation Act is:

The Limitation Act 1980 established the rules on the length of time a creditor has to take action (such as a lawsuit) against an individual for a debt the creditor is owed. Depending upon the type of debt the individual has, the time limits are different. In this article we want to explain when you can use the Limitation Act for unsecured credit debts.

Unsecured credit debt are debts that include bank loans, building society personal loans, catalogues, finance company loans, store cards, credit cards and other debt along these lines. In some situations people have a debt with a typical unsecured creditor and they have not heard from the creditor in quite some time. Perhaps they have even moved address or even assumed the debt had been written off.

If a letter arrives completely unexpectedly from that creditor or a debt collection agency who is telling you to make a payment you can sometimes argue that the creditor has run out of time or is ’statute barred’ from taking you to court for the debt.

This can sometimes work of if:

- The creditor has not yet obtained a judgement against you in court

and

- You or another person who owes money, if it is a debt taken out in joint names, have failed to make payments on the debt during the last six years

and

- The creditor has no written statement from you in the last six years, such as a letter, which states you owe on that debt

    Debt for Police Officers

    Research as shown us that theses may be some valuable suggestions for managing officers who are experiencing financial difficulties so we created this article to share these suggestions for Forces within the UK who are managing officers who have fallen into such financial troubles. This is in no way meant to be interpreted as a prescriptive document or official financial advice.
    While each case should definitely be dealt with based on the unique criteria of that situation, some basic suggestions could provide some uniformity and additional clarity to those who deal with these issues.
    According to research, more officers than in prior years are now going through financial difficulties for a wide variety of reasons. Relative pay levels for officers fluctuate at a near constant rate and at the same time, financial institutions are eager to enter into credit agreements with officers. This can even be the case in situations where they would not have done the same for a member of the public who was in a different line of work and in the same circumstances.
    How to Determine When an Officer is in Financial Difficulty
    Circumstances for each officer will be very different depending upon factors such as: the earning ability of their domestic partner if they have one, children involved in their relationships and how well they are able to manage their own debts. Considering these facts, then we will define ‘financial difficulty’ as:
    A situation in which an officer has little or no chance in the near future of being able to meet their current debt.
    It is important that Forces are aware that officers who have fallen into financial difficulty are usually in one of three primary situations:
    Those officers going through marital troubles
    Those officers who have experienced a change in their family’s or their own financial situations
    Those recruits who now have unmanageable debts
    In many instances a Debt Management Plan or an IVA (Individual Voluntary Arrangement) may be a solution you could advise such officers to look into. It’s always best to intervene early if you can and help them solve their situation before it ever becomes dire.

    Research as shown us that theses may be some valuable suggestions for managing officers who are experiencing financial difficulties so we created this article to share these suggestions for Forces within the UK who are managing officers who have fallen into such financial troubles. This is in no way meant to be interpreted as a prescriptive document or official financial advice.

    While each case should definitely be dealt with based on the unique criteria of that situation, some basic suggestions could provide some uniformity and additional clarity to those who deal with these issues.

    According to research, more officers than in prior years are now going through financial difficulties for a wide variety of reasons. Relative pay levels for officers fluctuate at a near constant rate and at the same time, financial institutions are eager to enter into credit agreements with officers. This can even be the case in situations where they would not have done the same for a member of the public who was in a different line of work and in the same circumstances.

    How to Determine When an Officer is in Financial Difficulty

    Circumstances for each officer will be very different depending upon factors such as: the earning ability of their domestic partner if they have one, children involved in their relationships and how well they are able to manage their own debts. Considering these facts, then we will define ‘financial difficulty’ as:

    A situation in which an officer has little or no chance in the near future of being able to meet their current debt.

    It is important that Forces are aware that officers who have fallen into financial difficulty are usually in one of three primary situations:

    Those officers going through marital troubles

    Those officers who have experienced a change in their family’s or their own financial situations

    Those recruits who now have unmanageable debts

    In many instances a Debt Management Plan or an IVA (Individual Voluntary Arrangement) may be a solution you could advise such officers to look into. It’s always best to intervene early if you can and help them solve their situation before it ever becomes dire.

    Dealing with Debt

    These days, credit in very easy to obtain for those living in the UK. Those looking to led money include small scale money lenders, mail order firms, credit unions, finance companies, insurance companies, credit card companies, building societies and banks. Most of us will eventually require credit in some form or another, whether it is a mortgage to buy a house or a loan to purchase expensive electronics, furniture or a new car. The definition of credit is buying a product or service under conditions that offer you time to pay it off. That credit itself is paid for in the form of interest. Those who borrow money would be wise to check the APR (Annual Percentage Rate) to make sure they are getting the cheapest credit possible.
    It’s easier than you might think to end up borrowing more money than you have the ability to repay and when you do that, the resulting money owed is called debt. To word it another way, credit is debt that you have under control while debt is credit that has gotten out of control. Many people end up borrowing even more money against their debts in the hope of clearing what they owe, instead creating an even larger debt for themselves.
    When people experience debt problems it is usually due to multiple debts they owe becoming overdue, such as:
    Overdue on Holidays (Particularly ‘Fly now, pay later’)
    Overdue on furniture payments
    Overdue on TV/Video/Stereo equipment
    Overdue on car payments
    Overdue on electricity, gas or telephone utilities with the result of being cut off
    Overdue on council tax with the result of bailiffs or worse consequences
    Overdue on mortgage with the frightening result of repossession and subsequent homelessness
    Debts have a nasty tendency to ruin lives when they get out of hand so it is crucial that you seriously consider borrowing money each and every time you do so. You and your family’s lives are what will be affected should the situation spiral out of your control. More often than is commonly believed, debt is a cause of the breakdown of a marriage. Your golden rule could be: Never borrow more money than you are absolutely certain you can pay back.
    If you do, despite your best intentions, find yourself struggling with debt, take a moment to consider your options for getting your financial life back on track.
    A Debt Management Plan or Individual Voluntary Arrangement (IVA) may be exactly what you need to get yourself back into financial health once again.

    These days, credit in very easy to obtain for those living in the UK. Those looking to led money include small scale money lenders, mail order firms, credit unions, finance companies, insurance companies, credit card companies, building societies and banks. Most of us will eventually require credit in some form or another, whether it is a mortgage to buy a house or a loan to purchase expensive electronics, furniture or a new car. The definition of credit is buying a product or service under conditions that offer you time to pay it off. That credit itself is paid for in the form of interest. Those who borrow money would be wise to check the APR (Annual Percentage Rate) to make sure they are getting the cheapest credit possible.

    It’s easier than you might think to end up borrowing more money than you have the ability to repay and when you do that, the resulting money owed is called debt. To word it another way, credit is debt that you have under control while debt is credit that has gotten out of control. Many people end up borrowing even more money against their debts in the hope of clearing what they owe, instead creating an even larger debt for themselves.

    When people experience debt problems it is usually due to multiple debts they owe becoming overdue, such as:

    Overdue on Holidays (Particularly ‘Fly now, pay later’)

    Overdue on furniture payments

    Overdue on TV/Video/Stereo equipment

    Overdue on car payments

    Overdue on electricity, gas or telephone utilities with the result of being cut off

    Overdue on council tax with the result of bailiffs or worse consequences

    Overdue on mortgage with the frightening result of repossession and subsequent homelessness

    Debts have a nasty tendency to ruin lives when they get out of hand so it is crucial that you seriously consider borrowing money each and every time you do so. You and your family’s lives are what will be affected should the situation spiral out of your control. More often than is commonly believed, debt is a cause of the breakdown of a marriage. Your golden rule could be: Never borrow more money than you are absolutely certain you can pay back.

    If you do, despite your best intentions, find yourself struggling with debt, take a moment to consider your options for getting your financial life back on track.

    A Debt Management Plan or Individual Voluntary Arrangement (IVA) may be exactly what you need to get yourself back into financial health once again.

    Bank Loans and Overdrafts

    Bank Loans and Loan Finance
    Loan Finance and Bank Loans are generally appropriate for those borrowing for an especially expensive item like a car that costs a great deal of money and will be repaid over a long term period of time such as 10 years. Interest rates are generally lower than they would be on a credit card, but higher than they would be on a mortgage.
    Overdrafts
    If borrowing for a short term and only in smaller amounts of money then a bank overdraft may be more appropriate. Interest rates on an overdraft are usually higher than they would be with a loan, particularly in instances where the overdraft hasn’t been agreed to by the bank in advance.
    If you end up having a permanent overdraft, you may be able to lower your interest payments by taking out a loan of some type in order to repay that overdraft. Sometimes you can take advange of a 0% credit card offer and save yourself money that you would otherwise have paid to a standard loan, in terms of interest. However, bear in mind that once that interest free period ends, the interest owed can rise very quickly and build up debt beyond what you had intended. Also, keep in mind that if you take out a loan and want to repay it earlier than the agreed time table you may owe penalties. An overdraft can be repaid on any time scale without any penalties.

    Bank Loans and Loan Finance

    Loan Finance and Bank Loans are generally appropriate for those borrowing for an especially expensive item like a car that costs a great deal of money and will be repaid over a long term period of time such as 10 years. Interest rates are generally lower than they would be on a credit card, but higher than they would be on a mortgage.

    Overdrafts

    If borrowing for a short term and only in smaller amounts of money then a bank overdraft may be more appropriate. Interest rates on an overdraft are usually higher than they would be with a loan, particularly in instances where the overdraft hasn’t been agreed to by the bank in advance.

    If you end up having a permanent overdraft, you may be able to lower your interest payments by taking out a loan of some type in order to repay that overdraft. Sometimes you can take advange of a 0% credit card offer and save yourself money that you would otherwise have paid to a standard loan, in terms of interest. However, bear in mind that once that interest free period ends, the interest owed can rise very quickly and build up debt beyond what you had intended. Also, keep in mind that if you take out a loan and want to repay it earlier than the agreed time table you may owe penalties. An overdraft can be repaid on any time scale without any penalties.

    When Your Credit is Refused

    You Shouldn’t Panic if You Are Refused Credit
    If you find yourself in a situation where you are refused credit, keep in mind that it could be for any number of reasons. Somtimes it is simply because the lender believes that based on the information obtained about you from a credit reference agency, it looks as though you may struggle to repay debts. It could also be due to information that you provided on an application form to the lender that triggered them to conclude the same thing. Also, it may simply be that the lender does not find you to fit the profile of the type person they want to give credit to. This could be due to the type of job you have, your age or a myriad of other specifications that lender has chosen to focus on when selecting candidates for credit.
    Keep in mind that no individual has a right credit in the UK. There are rules about refusing people due solely to their race, gender, sexual orientation, address or religion, but a lender can still refuse your application without giving you a reason. However, most lenders will tend to give you an idea of why they rejected your application.
    Don’t Feel Bad for Wanting to Know Why
    It’s perfectly natural to want to know what you were refused credit as well as wanting to learn what you can do to improve your attractiveness to lenders. That means you’ll want to ask the lender first, but be aware that lenders try to be careful about what they tell people. It’s not uncommon for lenders to score applications by weighing each piece of information with sub score and then adding those together to get an overall score. They normally tell you if this is how your application failed.
    If your application was refused due to credit reference information then the lender will give you the name and address of the agency from whom they obtained that information. You can then write that agency to get a copy of your file sent to you along with a guide to what the information means and how you can get it changed or add to it if you need to.
    Although credit reference agencies will not be able to tell you why you were refused for credit because they do not know themselves, they generally have quite adept customer service departments that may be able to help you with questions about your credit information.

    You Shouldn’t Panic if You Are Refused Credit

    If you find yourself in a situation where you are refused credit, keep in mind that it could be for any number of reasons. Somtimes it is simply because the lender believes that based on the information obtained about you from a credit reference agency, it looks as though you may struggle to repay debts. It could also be due to information that you provided on an application form to the lender that triggered them to conclude the same thing. Also, it may simply be that the lender does not find you to fit the profile of the type person they want to give credit to. This could be due to the type of job you have, your age or a myriad of other specifications that lender has chosen to focus on when selecting candidates for credit.

    Keep in mind that no individual has a right credit in the UK. There are rules about refusing people due solely to their race, gender, sexual orientation, address or religion, but a lender can still refuse your application without giving you a reason. However, most lenders will tend to give you an idea of why they rejected your application.

    Don’t Feel Bad for Wanting to Know Why

    It’s perfectly natural to want to know what you were refused credit as well as wanting to learn what you can do to improve your attractiveness to lenders. That means you’ll want to ask the lender first, but be aware that lenders try to be careful about what they tell people. It’s not uncommon for lenders to score applications by weighing each piece of information with sub score and then adding those together to get an overall score. They normally tell you if this is how your application failed.

    If your application was refused due to credit reference information then the lender will give you the name and address of the agency from whom they obtained that information. You can then write that agency to get a copy of your file sent to you along with a guide to what the information means and how you can get it changed or add to it if you need to.

    Although credit reference agencies will not be able to tell you why you were refused for credit because they do not know themselves, they generally have quite adept customer service departments that may be able to help you with questions about your credit information.

    Your Job and How Debt Affects It

    Employment and How Debt Problems Affect Your Job
    With this article we want to address the ways in which serious debt troubles can affect your ability to work and keep your job or even your career. Our hope is that you may learn information here that can help you if you or a loved one faces serious debt that has begun to affect your or their ability to work. It is never a positive experience to have your job at risk due to a terrible debt struggle.
    Debt solutions are available for those who do not wish to have their work life interrupted or even ruined do to debt. The effects can be much more long lasting than you might imagine. For example, a bankruptcy can have effects that last a decade.
    Here are a few solutions that may suit your needs:
    An IVA, the Individual Voluntary Arrangement
    - An IVA is an agreement for those who owe £15,000 or more. With an IVA, the advantage is that it will not affect your job or ability to keep working for almost all employers.
    A DMP, the Debt Management Plan
    - If your job is on the line due to debt then a Debt Management Plan may be for you. This popular solution has the advantage that it takes your unique individual circumstances into account.
    A Bankruptcy
    - Since your job may be impacted if you undergo a bankruptcy, particularly if you work in the legal sector, banking or finance, you will want to get sound advice before you consider this step.
    Once you have already lost your job due to debt, it is too late to do anything constructive about it. However, if you’re struggling with debt and you need answers, then you will want to act quickly because as we all know, debt piles up quicker than we hope it will.

    Employment and How Debt Problems Affect Your Job

    With this article we want to address the ways in which serious debt troubles can affect your ability to work and keep your job or even your career. Our hope is that you may learn information here that can help you if you or a loved one faces serious debt that has begun to affect your or their ability to work. It is never a positive experience to have your job at risk due to a terrible debt struggle.

    Debt solutions are available for those who do not wish to have their work life interrupted or even ruined do to debt. The effects can be much more long lasting than you might imagine. For example, a bankruptcy can have effects that last a decade.

    Here are a few solutions that may suit your needs:

    An IVA, the Individual Voluntary Arrangement

    - An IVA is an agreement for those who owe £15,000 or more. With an IVA, the advantage is that it will not affect your job or ability to keep working for almost all employers.

    A DMP, the Debt Management Plan

    - If your job is on the line due to debt then a Debt Management Plan may be for you. This popular solution has the advantage that it takes your unique individual circumstances into account.

    A Bankruptcy

    - Since your job may be impacted if you undergo a bankruptcy, particularly if you work in the legal sector, banking or finance, you will want to get sound advice before you consider this step.

    Once you have already lost your job due to debt, it is too late to do anything constructive about it. However, if you’re struggling with debt and you need answers, then you will want to act quickly because as we all know, debt piles up quicker than we hope it will.

    Tax Debt in the UK

    When You Can’t Pay Your Tax
    In this article we want to explore the primary aspects of an inability to pay one’s tax.
    Some terms to better help you understand this article are as follows:
    Collector – The person who purses those who have not paid tax. Today these individuals are part of the RMS (Receivables Management Service). However, before a collector will pursue you, an initial application for payment is sent from one of the two Accounts Offices in either Cumbernauld or Shipley. If, instead local enforcement action must be taken for payment not having been made, the Recovery Office will deal with this matter. Usually, the Recovery Office is named after the city or town where it is located and this office has jurisdiction for the area in which you live or trade. In cases where a bankruptcy is involved, the EIS (Enforcement and Insolvency Service) in Worthing will get involved. Those employed by the RMS may contact you if your returns are outstanding, but they do not process your return themselves.
    The issuing and processing of returns is handled by RMS offices which in this article will be called “tax offices” because that is what they are traditionally called in an unofficial sense. It’s important to realize that different people within the RMS have different roles so the “collector” who contacts you is usually a different person from the RMS who does not deal with your specific tax return – that would be the “tax office”.
    Warning Signs of Impending Problems
    Each year, thousands of individuals get into arrears with their tax. Normally, the individual is made aware of this situation when they see a debt on their Statement of Account. After a short time, a collector will generally get in touch via letter or telephone and ask for an immediate payment. It is important to remain calm and fight any sense of panic you feel.
    The RMS can frighten people by threatening them with legal action, but it is still crucial that you don’t panic if this happens because the situation may not be as dire as it seems. Remain calm as you work through the situation and consider your options, as well as how you got into the situation.
    The first thing to remember is that you should never ignore a statement of account or a demand from a collector because that is the worst action to take. If there is any chance that you can resolve your situation then you will want to act quickly because if you do nothing then you are inadvertently raising the risk that you will face legal action.
    Remember, the amount being demanded could be incorrect. You may find that you disagree with what either the collector or the Statement of Account state is the amount of tax owed. In some instances your statment may include what is called a determination, which is an estimate and made because the tax return (or tax returns) have not been completed. If this is the case it can be corrected.
    Unfortunately, the collector who is paid to pursue you for upaid tax may or may not be trained in how to understand the tax so you could well be wasting effort if you try to persuade them that the figure is incorrect. Generally you will need to contact your tax office to make the needed adjustments because they are the ones who deal with your tax return.
    You will end up liable for penalties, surcharges, interest and tax charged on determination if you have not completed your tax return (or tax returns) which is not only correct, but enforceable until you have submitted a completed return. Once you have submitted the return the amount of tax will be revised so that they reflect the amounts shown on your return. Then you will only need to pay the revised debt plus interest and any outstanding penalties or surcharges that are still due in respect of the revised debt.
    In cases of ‘non-return’, outstanding debts are pursued until the required return is submitted, so even if you pay all that is demanded, they will continue to take action in order to get that return submitted. Generally this means daily penalties. Therefore, it is not in your interest to always submit your returns in a timely manner.
    There are some instances where, if you do owe tax, you are allowed to pay it over time. Although tax should always be paid when it falls due, the RMS allows some people to pay their tax over a period of weeks, months or longer, in certain circumstances. This does mean, however, that interest will be added to the total amount due, but it’s possible this interest will be small. Generally  in these instances the RMS will keep reminding you that interest is being added to the total because they have no discretion and are unable to freze interest in order to help you clear the debt quicker.
    Interest rates on unpaid tax is actually lower than is commonly believed, right now it is set at 6.5% per annum. As an example, being one month late on a tax bill of £2,000 means you are charged £11.
    Many people are afraid that failure to pay tax in a timely manner leads to criminal prosecution and imprisonment, but this rarely happens. The RMS does prosecute a few people each year, but these are mostly cases where the person is alleged to have been seriously dishonest or trying to evade the tax. The RMS won’t take this course of action simply because an individual has not paid tax on time or if they are having trouble finding money to settle. Yet, at the same time it is important to be aware of the risk that the RMS may try to obtain a court judgment against you for the unpaid tax. If you fail to pay the tax after this you may receive a judgment summons which requires you to attend court and explain why you haven’t paid. Ignoring a judgment summons and not attending court could result in a prison sentence.
    It is important to understand that you have rights when you are a taxpayer. The RMS must hold to a Service Commitment and under this, it promises to treat taxpayers fairly and with courtesy. When you have clear evidence that the person who has dealt with your case was rude, unfair or overly harsh then you have a right to complain and ask that another person be assigned to your case.
    After you have been contacted regarding unpaid tax, you will want to consider what to do next:
    - Do you believe the amount being demanded is incorrect? If you do then do not hesitate to take action in order to get the figure corrected
    - If you believe that you do owe tax, but you can’t pay immediately then you want to work out an agreement with the RMS
    - In the instance that you are unable to work an agreement out with the RMS you may face enforcement action so it is important to understand each of those procedures and which defences could help you most.
    There are people who have never declared their income and as result do not receive any demands from the RMS because it is unaware that the person has earned any taxable income or has been misled regarding the total amount earned. This situation is dangerous because the person may end up receiving a penalty for failing to report their income and that means the risk of potential prosecution.
    If you are dealing with tax arrears, the situation can be stressful due to the complexity so you may benefit from outside counsel. You could benefit from help getting things straightened out through either a Debt Management Plan or, in more severe instances where you owe fifteen thousand pounds or more, an Individual Voluntary Arrangement (IVA).
    Get started today sorting these issues out because waiting only makes your life more stressful than it needs to be.

    When You Can’t Pay Your Tax


    In this article we want to explore the primary aspects of an inability to pay one’s tax.


    Some terms to better help you understand this article are as follows:


    Collector – The person who purses those who have not paid tax. Today these individuals are part of the RMS (Receivables Management Service). However, before a collector will pursue you, an initial application for payment is sent from one of the two Accounts Offices in either Cumbernauld or Shipley. If, instead local enforcement action must be taken for payment not having been made, the Recovery Office will deal with this matter. Usually, the Recovery Office is named after the city or town where it is located and this office has jurisdiction for the area in which you live or trade. In cases where a bankruptcy is involved, the EIS (Enforcement and Insolvency Service) in Worthing will get involved. Those employed by the RMS may contact you if your returns are outstanding, but they do not process your return themselves.


    The issuing and processing of returns is handled by RMS offices which in this article will be called “tax offices” because that is what they are traditionally called in an unofficial sense. It’s important to realize that different people within the RMS have different roles so the “collector” who contacts you is usually a different person from the RMS who does not deal with your specific tax return – that would be the “tax office”.


    Warning Signs of Impending Problems


    Each year, thousands of individuals get into arrears with their tax. Normally, the individual is made aware of this situation when they see a debt on their Statement of Account. After a short time, a collector will generally get in touch via letter or telephone and ask for an immediate payment. It is important to remain calm and fight any sense of panic you feel.


    The RMS can frighten people by threatening them with legal action, but it is still crucial that you don’t panic if this happens because the situation may not be as dire as it seems. Remain calm as you work through the situation and consider your options, as well as how you got into the situation.


    The first thing to remember is that you should never ignore a statement of account or a demand from a collector because that is the worst action to take. If there is any chance that you can resolve your situation then you will want to act quickly because if you do nothing then you are inadvertently raising the risk that you will face legal action.


    Remember, the amount being demanded could be incorrect. You may find that you disagree with what either the collector or the Statement of Account state is the amount of tax owed. In some instances your statment may include what is called a determination, which is an estimate and made because the tax return (or tax returns) have not been completed. If this is the case it can be corrected.


    Unfortunately, the collector who is paid to pursue you for upaid tax may or may not be trained in how to understand the tax so you could well be wasting effort if you try to persuade them that the figure is incorrect. Generally you will need to contact your tax office to make the needed adjustments because they are the ones who deal with your tax return.


    You will end up liable for penalties, surcharges, interest and tax charged on determination if you have not completed your tax return (or tax returns) which is not only correct, but enforceable until you have submitted a completed return. Once you have submitted the return the amount of tax will be revised so that they reflect the amounts shown on your return. Then you will only need to pay the revised debt plus interest and any outstanding penalties or surcharges that are still due in respect of the revised debt.


    In cases of ‘non-return’, outstanding debts are pursued until the required return is submitted, so even if you pay all that is demanded, they will continue to take action in order to get that return submitted. Generally this means daily penalties. Therefore, it is not in your interest to always submit your returns in a timely manner.


    There are some instances where, if you do owe tax, you are allowed to pay it over time. Although tax should always be paid when it falls due, the RMS allows some people to pay their tax over a period of weeks, months or longer, in certain circumstances. This does mean, however, that interest will be added to the total amount due, but it’s possible this interest will be small. Generally  in these instances the RMS will keep reminding you that interest is being added to the total because they have no discretion and are unable to freze interest in order to help you clear the debt quicker.


    Interest rates on unpaid tax is actually lower than is commonly believed, right now it is set at 6.5% per annum. As an example, being one month late on a tax bill of £2,000 means you are charged £11.


    Many people are afraid that failure to pay tax in a timely manner leads to criminal prosecution and imprisonment, but this rarely happens. The RMS does prosecute a few people each year, but these are mostly cases where the person is alleged to have been seriously dishonest or trying to evade the tax. The RMS won’t take this course of action simply because an individual has not paid tax on time or if they are having trouble finding money to settle. Yet, at the same time it is important to be aware of the risk that the RMS may try to obtain a court judgment against you for the unpaid tax. If you fail to pay the tax after this you may receive a judgment summons which requires you to attend court and explain why you haven’t paid. Ignoring a judgment summons and not attending court could result in a prison sentence.


    It is important to understand that you have rights when you are a taxpayer. The RMS must hold to a Service Commitment and under this, it promises to treat taxpayers fairly and with courtesy. When you have clear evidence that the person who has dealt with your case was rude, unfair or overly harsh then you have a right to complain and ask that another person be assigned to your case.


    After you have been contacted regarding unpaid tax, you will want to consider what to do next:


    - Do you believe the amount being demanded is incorrect? If you do then do not hesitate to take action in order to get the figure corrected


    - If you believe that you do owe tax, but you can’t pay immediately then you want to work out an agreement with the RMS


    - In the instance that you are unable to work an agreement out with the RMS you may face enforcement action so it is important to understand each of those procedures and which defences could help you most.


    There are people who have never declared their income and as result do not receive any demands from the RMS because it is unaware that the person has earned any taxable income or has been misled regarding the total amount earned. This situation is dangerous because the person may end up receiving a penalty for failing to report their income and that means the risk of potential prosecution.


    If you are dealing with tax arrears, the situation can be stressful due to the complexity so you may benefit from outside counsel. You could benefit from help getting things straightened out through either a Debt Management Plan or, in more severe instances where you owe fifteen thousand pounds or more, an Individual Voluntary Arrangement (IVA).


    Get started today sorting these issues out because waiting only makes your life more stressful than it needs to be.

      Debt Advice for Gay and Lesbian Couples

      While there is a rather unhelpful stereotype in the media that depicts the stereotype as wealthy gay male couples who both have incomes with neither having any children, the reality is often quite a bit different. Gay and lesbian people face as much debt as any other people in the UK.

      A community funded survey done in Brighton in 1999 showed that most gay couples in that community and in surrounding areas were living on annual incomes of less than £15,000.

      An income that low means that a couple cannot save against potential income interruptions or other unexpected misfortunes and that means there can be no real long term financial security. If there is no genuine ability to save for the future then it is quite difficult to plan for a future where uncertainty is the only given.

      Debt at this income level can be catastrophic for both partners, leading to needless stress and causing difficulties within the relationship itself, regardless of the lifestyle the couple leads together. If creditors are hassling you or your partner, then it is important not to let things go too far. Gay and lesbian couples face the same financial challenges that all couples face and because of this, they are able to benefit from the same solutions because all people are equal when it comes to financial and legal rights, as well as challenges.

      If your debt is still near being under your control then you may want a Debt Management Plan, a sensible solution to re-structuring your payments into a single payment you can afford. More severe debt may require an Individual Voluntary Agreement (IVA) that can help manage debt that’s gone too far. Even a bankruptcy may help if it’s gone so far that repayment is no longer an option for you.

      Don’t let debt control your life, seek help online where you can get quality advice from a trained professional.

      Credit Card Debt

      With debt in general hitting a record high recently, and debt from credit cards soaring to excruciatingly high levels, many people fund themselves completely unable to repay their debt. What we want to do now is take a look at credit card debt and learn about some of the causes and solutions with which we can handle it.
      Credit card debt is all too easy to run up, but it can be quite difficult to alleviate once you’ve stacked the bills high enough and interest begins to set in. Credit cards and unsecured debt are one and the same so because of this, they must be treated that way. The first step towards tackling this problem is to get serious before the situation gets serious with you. Sit yourself down and begin creating a budget. It’s very simple, just list your income and your expenditures – be thorough. This particular budget should not include payments you make on unsecured credit, that includes overdrafts, credit cards and personal loans. You can deal with those later on.
      In order to get yourself back into financial balance as quickly as possible, you will want to open up a bank account that has no overdraft and no cheque facility. This is where you can save your money without having it be accessible to you for spending. It’s an important part of digging yourself out of debt.
      The major solutions to debt that is entirely out of hand, in the thousands of pounds and rising, are listed below:
      Debt Management Plan (DMP) – With a DMP, you work with a professional Insolvency Practitioner (IP) who will assist you in your efforts to free yourself from debt. A DMP will allow you to make a single monthly payment that you can afford instead of trying to juggle multiple bills. Under a DMP you have a responsible plan to repay your debts and creditors look favorably upon that. Many times, your IP can have your interest frozen by your creditors during your repayment period and once your DMP is completed, you are debt free.
      Individual Voluntary Agreement (IVA) – This form of insolvency is far less severe than a bankruptcy. It allows you to pay back your debt with a single, affordable monthly payment that is customised to your financial means by your IP who will work with you because each IVA is uniquely designed for the person taking it on. Because of the committment an IVA shows, once completed it does not have the same negative effect upon your credit rating as a bankruptcy.
      Bankruptcy – It is a major decision to declare bankruptcy and usually a last resort but once a person is truly so far behind they can never reasonably repay then it may be the right solution. Keep in mind that major assets can be lost and your credit rating will be affected for some time.
      If you are in serious debt, it is best not to wait to take action. Learn about the solutions that may fit your situation above. You owe it to yourself to ease the stress of any debt, especially from credit cards. It’s easy to get the help you need and you will be able to sleep through the night once again so why not take action now?

      With debt in general hitting a record high recently, and debt from credit cards soaring to excruciatingly high levels, many people fund themselves completely unable to repay their debt. What we want to do now is take a look at credit card debt and learn about some of the causes and solutions with which we can handle it.

      Credit card debt is all too easy to run up, but it can be quite difficult to alleviate once you’ve stacked the bills high enough and interest begins to set in. Credit cards and unsecured debt are one and the same so because of this, they must be treated that way. The first step towards tackling this problem is to get serious before the situation gets serious with you. Sit yourself down and begin creating a budget. It’s very simple, just list your income and your expenditures – be thorough. This particular budget should not include payments you make on unsecured credit, that includes overdrafts, credit cards and personal loans. You can deal with those later on.

      In order to get yourself back into financial balance as quickly as possible, you will want to open up a bank account that has no overdraft and no cheque facility. This is where you can save your money without having it be accessible to you for spending. It’s an important part of digging yourself out of debt.

      The major solutions to debt that is entirely out of hand, in the thousands of pounds and rising, are listed below:

      Debt Management Plan (DMP) – With a DMP, you work with a professional Insolvency Practitioner (IP) who will assist you in your efforts to free yourself from debt. A DMP will allow you to make a single monthly payment that you can afford instead of trying to juggle multiple bills. Under a DMP you have a responsible plan to repay your debts and creditors look favorably upon that. Many times, your IP can have your interest frozen by your creditors during your repayment period and once your DMP is completed, you are debt free.

      Individual Voluntary Agreement (IVA) – This form of insolvency is far less severe than a bankruptcy. It allows you to pay back your debt with a single, affordable monthly payment that is customised to your financial means by your IP who will work with you because each IVA is uniquely designed for the person taking it on. Because of the commitment an IVA shows, once completed it does not have the same negative effect upon your credit rating as a bankruptcy.

      Bankruptcy- It is a major decision to declare bankruptcy and usually a last resort but once a person is truly so far behind they can never reasonably repay then it may be the right solution. Keep in mind that major assets can be lost and your credit rating will be affected for some time.

      If you are in serious debt, it is best not to wait to take action. Learn about the solutions that may fit your situation above. You owe it to yourself to ease the stress of any debt, especially from credit cards. It’s easy to get the help you need and you will be able to sleep through the night once again so why not take action now?

      Store Card Debt

      In the UK there are more than 11 million people who hold store cards and the total outstanding balances on those cards now exceeds £2 Billion
      Problem Areas in Regards to UK Store Card Debt
      There are quite high interest rates attached to store card debt that you will want to be aware of because it is extremely easy to allow debts on your store card to pile up. In the UK this is becoming an increasingly difficult problem due to the public embracing the convenience that store cards offer them.
      For British shoppers, the allure of saving up to 20% on purchases via store cards is nearly irresistible. However, the downfall of giving in to this temptation is that interest rates on store card debt can be as high as 30% so as you can see, the savings are then nullified and the store card companies end up profiting quite handsomely. Millions of consumers are facing debt trouble from this situation.
      What a store card is:
      A store card is a branded credit card that is useable only in a single shop or chain. Traditionally, they are the most expensive method by which you can borrow money because the APR (Annual Percentage Rate) is 30%, double the rate of a high street credit card.
      Understanding the benefits store cards offer:
      - Consumers can use store cards during a significant period of no interest being charged and take advantage of incentives or special offers that the retailers have in order to compound their savings
      - Certain customers want a relationship with a certain store or brand and since they are able to obtain discounts from these favored stores or brands they feel the card is beneficial to them. Often, they are told about new merchandise before customers who do not have that store card. These customers appreciate the ‘designer label’ feel of owning and using a store card.
      Understanding the disadvantages store cards can pose:
      While credit is an extremely useful tool for millions of people in the UK, it is still important to be aware of the risks posed by any unsecured credit. A lack of financial education can leave people vulnerable to poor decision making when it comes to balancing their finances. Those who are already struggling financially face danger when they give in to temptations of ‘interest free’ offers or ‘pay nothing for six months’ programs that sound more beneficial than they end up being in light of that individuals real monetary circumstances. Often, consumers who spend this way are simply hoping the future will be brighter than the present and so they willfully take on unwise debt knowing the consequences that can result and hoping they will avoid them.
      Many times, over eager sales people promote store cards to customers that are uneducated in how to use them properly. With these customers, offering incentives can really win them over because they do not understand the full ramifications of what will happen when they are unable to avoid the high interest rates by paying off their debt in time. It is extremely easy to talk a person into signing up for a store card because the benefits are real, but unless the customer can truly pay the debt back within the time frame then the store card is a liability, rather than an asset. While it is tempting to try to benefit from the discounts offered on your shopping expenditures, it is all too easy for that store card debt to rise out of reach.
      Since the incredibly high interest rates are the danger with store cards, it is commonly advised that consumers avoid them unless they intend to and are able to pay down their store card bill as soon as it arrives. Shoppers who have budgeted money to pay off the balance during the period without interest can benefit from these borrowing tools.
      Who provides the majority of store card debt?
      Over 20 million store cards are issued annually in the UK and in 2007 alone, store card debt totaled over 2 billion pounds. Approximately 70 UK retailers offer store cards, primarily those in the department store and retail clothing sectors.
      Research indicates that the following store cards are the most expensive in terms of debt:
      - Dorothy Perkins
      - Warehouse
      - Miss Selfridge
      - Laura Ashley
      - Burtons
      - Topshop
      - Oasis
      - Russel and Bromley
      - Toys R Us
      To give you an idea of exactly how severe the interest charges on store cards can be, the average store card charges close to 25% APR. At this rate, an £800 balance would end up costing £126.83 in interest per year. Yet due to the easy application process for store cards versus lower interest rate credit cards, UK consumers continue to be seemingly obsessed with this method of borrowing.
      Debt troubles from store cards have led many people to seek solutions and here are a few of those that have worked for others:
      Debt Management Plan – With this option, you can make one payment per month that is divided up between creditors for you by a professional Insolvency Practitioner. You can find out more about Debt Management Plans in the UK by using the web.
      Individual Voluntary Agreement (IVA) – This form of insolvency is growing in popularity each year because it is not as severe in consequences as a bankruptcy, but does free a person from debts over time. Creditors appreciate an IVA and often work with those who seek them since they are more likely to recover their debts than with a bankruptcy. Since an IVA is less devastating to your credit, it makes it easier to obtain credit once again after you’re back on you feet financially. Also, while you cannot force any creditor to work with you, your Insolvency Practitioner who sets up your IVA will often be able to negotiate a freezing of interest to rein your debt in.
      Bankruptcy – Typically, this is a last resort means of dealing with store card or other debts. It generally comes with the loss of all the major assets owned by that debtor.
      If you are struggling under the weight of debt from store cards, the important thing is not to wallow in the guilt, but to seek out a solution. Those outlined above may be right for your situation so do not hestitate to find out because you deserve a chance to get your finances back under control.

      In the UK there are more than 11 million people who hold store cards and the total outstanding balances on those cards now exceeds £2 Billion

      Problem Areas in Regards to UK Store Card Debt

      There are quite high interest rates attached to store card debt that you will want to be aware of because it is extremely easy to allow debts on your store card to pile up. In the UK this is becoming an increasingly difficult problem due to the public embracing the convenience that store cards offer them.

      For British shoppers, the allure of saving up to 20% on purchases via store cards is nearly irresistible. However, the downfall of giving in to this temptation is that interest rates on store card debt can be as high as 30% so as you can see, the savings are then nullified and the store card companies end up profiting quite handsomely. Millions of consumers are facing debt trouble from this situation.

      What a store card is:

      A store card is a branded credit card that is usable only in a single shop or chain. Traditionally, they are the most expensive method by which you can borrow money because the APR (Annual Percentage Rate) is 30%, double the rate of a high street credit card.

      Understanding the benefits store cards offer:

      - Consumers can use store cards during a significant period of no interest being charged and take advantage of incentives or special offers that the retailers have in order to compound their savings

      - Certain customers want a relationship with a certain store or brand and since they are able to obtain discounts from these favored stores or brands they feel the card is beneficial to them. Often, they are told about new merchandise before customers who do not have that store card. These customers appreciate the ‘designer label’ feel of owning and using a store card.

      Understanding the disadvantages store cards can pose:

      While credit is an extremely useful tool for millions of people in the UK, it is still important to be aware of the risks posed by any unsecured credit. A lack of financial education can leave people vulnerable to poor decision making when it comes to balancing their finances. Those who are already struggling financially face danger when they give in to temptations of ‘interest free’ offers or ‘pay nothing for six months’ programs that sound more beneficial than they end up being in light of that individuals real monetary circumstances. Often, consumers who spend this way are simply hoping the future will be brighter than the present and so they willfully take on unwise debt knowing the consequences that can result and hoping they will avoid them.

      Many times, over eager sales people promote store cards to customers that are uneducated in how to use them properly. With these customers, offering incentives can really win them over because they do not understand the full ramifications of what will happen when they are unable to avoid the high interest rates by paying off their debt in time. It is extremely easy to talk a person into signing up for a store card because the benefits are real, but unless the customer can truly pay the debt back within the time frame then the store card is a liability, rather than an asset. While it is tempting to try to benefit from the discounts offered on your shopping expenditures, it is all too easy for that store card debt to rise out of reach.

      Since the incredibly high interest rates are the danger with store cards, it is commonly advised that consumers avoid them unless they intend to and are able to pay down their store card bill as soon as it arrives. Shoppers who have budgeted money to pay off the balance during the period without interest can benefit from these borrowing tools.

      Who provides the majority of store card debt?

      Over 20 million store cards are issued annually in the UK and in 2007 alone, store card debt totaled over 2 billion pounds. Approximately 70 UK retailers offer store cards, primarily those in the department store and retail clothing sectors.

      Research indicates that the following store cards are the most expensive in terms of debt:

      - Dorothy Perkins

      - Warehouse

      - Miss Selfridge

      - Laura Ashley

      - Burtons

      - Topshop

      - Oasis

      - Russel and Bromley

      - Toys R Us

      To give you an idea of exactly how severe the interest charges on store cards can be, the average store card charges close to 25% APR. At this rate, an £800 balance would end up costing £126.83 in interest per year. Yet due to the easy application process for store cards versus lower interest rate credit cards, UK consumers continue to be seemingly obsessed with this method of borrowing.

      Debt troubles from store cards have led many people to seek solutions and here are a few of those that have worked for others:

      Debt Management Plan – With this option, you can make one payment per month that is divided up between creditors for you by a professional Insolvency Practitioner. You can find out more about Debt Management Plans in the UK by using the web.

      Individual Voluntary Agreement (IVA) – This form of insolvency is growing in popularity each year because it is not as severe in consequences as a bankruptcy, but does free a person from debts over time. Creditors appreciate an IVA and often work with those who seek them since they are more likely to recover their debts than with a bankruptcy. Since an IVA is less devastating to your credit, it makes it easier to obtain credit once again after you’re back on you feet financially. Also, while you cannot force any creditor to work with you, your Insolvency Practitioner who sets up your IVA will often be able to negotiate a freezing of interest to rein your debt in.

      Bankruptcy – Typically, this is a last resort means of dealing with store card or other debts. It generally comes with the loss of all the major assets owned by that debtor.

      If you are struggling under the weight of debt from store cards, the important thing is not to wallow in the guilt, but to seek out a solution. Those outlined above may be right for your situation so do not hesitate to find out because you deserve a chance to get your finances back under control.