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Revenue and Phased Repayment Plan

  • 16-05-2019 3:08pm
    #1
    stmargarets4
    Closed Accounts Posts: 14 ✭


    Hi
    Has anybody here had any dealings with the Revenue in regards setting up a phased repayment plan in terms of repaying back taxes.

    I am going through this at the moment but the monthly figured expected from the Revenue are far beyond my means as in zero chance of being able to match them and I've no idea what will happen next.

    Anybody gone through this before?


Comments

  • #2
    duffysfarm
    Registered Users Posts: 846 ✭✭✭duffysfarm


    yes, i have gone through it. they are usually 12 to 24 months in lenght. as far as i am aware it is usually the taxpayer or their agent who proposes the period of repayment. did you not do this in your case?


  • #3
    stmargarets4
    Closed Accounts Posts: 14 ✭stmargarets4


    The duration is currently being discussed but the amount owed is not possible to repay over such a short period realistically I would need 7-8 years to repay the amount owed based on current available cash after basic outgoings. I have drafted a budget plan - removing any unnecessary outgoings which leaves me with very little each month.
    I doubt this will be accepted by the Revenue but I have no assets to sell and no way of getting a large deposit or increasing the repayment amount each month. So I am in a bit of a stuck situation


  • #4
    thesimpsons
    Registered Users Posts: 1,694 ✭✭✭thesimpsons


    got a 36 month repayment period without any trouble at all. i suggested and they agreed to lower my credits for the 36 months. It reverted back to correct full credits soon as the period was over, I didn't need to remind them.


  • #5
    stmargarets4
    Closed Accounts Posts: 14 ✭stmargarets4


    Thanks Thesimpsons - unfortunately I'll need to stretch things out longer than 36 months and more like 84 / 96 months which is the only realistic option but that will no doubt be flat out declined.

    I will just have to see what options they come back with but I am not optimistic at all.


  • #6
    duffysfarm
    Registered Users Posts: 846 ✭✭✭duffysfarm


    if i were you i would apply to a bank for a loan even knowing that you are more than likely get turned down. The reason been that at least you can show the revenue that you made an effort to get the money some where else.

    i think hat you really need to demonstrate to them that you cant do a short term agreement and this may involved a cash flow projection for a few years

    i think you would be better approaching revenue rather than your agent as they will deal with the individual easier than the agent.

    i had one client years ago who did manage to set up a much longer agreement than anyone else that i had ever seen. He just kept talking to revenue telling them he couldn't agree to a shorter term and they gave him an agreement in the end


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  • #7
    stmargarets4
    Closed Accounts Posts: 14 ✭stmargarets4


    Thanks for the feedback.
    I have done both - applied for a loan ( declined) and set up financial projection for the next 7 years - which makes for depressing ready. Basically even when trying to pay back an amount way below their expectations I will be left with next to nothing after all outgoings - granted that will in crease in a few years time when other financial obligations are cleared.
    At the moment, after trying to engage with the Revenue for well over a year, it looks like legal proceedings will be taken as the case has been passed to a solicitor. I don't think I'll have to have a day in court but I don;t really know what could happen.

    I have offered an amount I can just about afford to pay per month, no assets to sell or seize so I am in a bit of bind as to what the next steps will be.


  • #8
    Evd-Burner
    Registered Users Posts: 1,456 ✭✭✭Evd-Burner


    I have no real insight or information here but just wanted to ask this question anyway. If you have no assets to sell or seize surely there isn't much they can do other than accept whatever you can pay?


  • #9
    Tina82
    Registered Users Posts: 106 ✭✭Tina82


    if its passed to a solicitor the solicitor will try to work out a repayment plan with you. Are you in employment / still trading ?


  • #10
    stmargarets4
    Closed Accounts Posts: 14 ✭stmargarets4


    Evd-Burner wrote: »
    I have no real insight or information here but just wanted to ask this question anyway. If you have no assets to sell or seize surely there isn't much they can do other than accept whatever you can pay?

    that is What I am thinking and hoping the outcome will be and the Revenue are only pushing the legal side of things as this is the process set out for cases like this.

    I am currently in full time employment and no longer trading ( company is still active as it can't be dissolved until all taxes are clears so if it take 7-8 years to clear those taxes I will still need to submit null returns and pay an accountant to do this - another expenses)

    From talking to the solicitor last week he has already started the court process as the repayment plan proposed to the solicitor and passed to the revenue has been rejected.

    We initially had a case worker assigned but the revenue have changed the way they operate so now we are just dealing with a team so I have a feeling my proposal has been rejected on face value rather than considering the past 12-18 months of dialog which is unfortunate.


  • #11
    drunkmonkey
    Registered Users Posts: 28,091 ✭✭✭✭drunkmonkey


    When you say you have nothing left to cut, have you a house, car, other financial commitments.
    They took a friend of mine to the bone, had to move back to his folks, default on other commitments which didn't help his reputation and destroyed his business. Car went from new to one worth a couple of hundred euros. It pushed him to to very edge, we were all really worried he'd come out of it alive.
    He's got through it now but he's lost a good few years of his life trying to fix it.
    He's back in the game now and doing well again. Not sure what advice to give but get these guys off your back before anyone else, cut deals with suppliers it's better than no deal for them. Don't let it break you down you'll get through it in the end.


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  • #12
    Evd-Burner
    Registered Users Posts: 1,456 ✭✭✭Evd-Burner


    stmargarets4 wrote: »
    Evd-Burner wrote: »
    I have no real insight or information here but just wanted to ask this question anyway. If you have no assets to sell or seize surely there isn't much they can do other than accept whatever you can pay?

    that is What I am thinking and hoping the outcome will be and the Revenue are only pushing the legal side of things as this is the process set out for cases like this.

    I am currently in full time employment and no longer trading ( company is still active as it can't be dissolved until all taxes are clears so if it take 7-8 years to clear those taxes I will still need to submit null returns and pay an accountant to do this - another expenses)

    From talking to the solicitor last week he has already started the court process as the repayment plan proposed to the solicitor and passed to the revenue has been rejected.

    We initially had a case worker assigned but the revenue have changed the way they operate so now we are just dealing with a team so I have a feeling my proposal has been rejected on face value rather than considering the past 12-18 months of dialog which is unfortunate.

    Have you spoke to your accountant or solicitor about declaring bankruptcy? To see if its even an option.


  • #13
    stmargarets4
    Closed Accounts Posts: 14 ✭stmargarets4


    drunkmonkey wrote: »
    When you say you have nothing left to cut, have you a house, car, other financial commitments.
    They took a friend of mine to the bone, had to move back to his folks, default on other commitments which didn't help his reputation and destroyed his business. Car went from new to one worth a couple of hundred euros. It pushed him to to very edge, we were all really worried he'd come out of it alive.
    He's got through it now but he's lost a good few years of his life trying to fix it.
    He's back in the game now and doing well again. Not sure what advice to give but get these guys off your back before anyone else, cut deals with suppliers it's better than no deal for them. Don't let it break you down you'll get through it in the end.

    Thanks for the advice.
    No house - renting.
    Car is owned by the bank - still paying it back

    I used the business when contracting as an IT consultant so no assets to speak of – the company was just a means of invoicing really.
    I have outlined to the revenue my current cash flow – showing wages and all outgoings leaving a very small pot at the end. Even if I were to give them that pot and leave me with zero at the end of the month – not realistic – this still wouldn’t match what they would expect to receive each month.


  • #14
    stmargarets4
    Closed Accounts Posts: 14 ✭stmargarets4


    Evd-Burner wrote: »
    Have you spoke to your accountant or solicitor about declaring bankruptcy? To see if its even an option.

    I need to bring this back up as an option to my accountant. I believe when I first mentioned it there was push back on the cost of having an audit completed but now that I say that it doesn't really make sense as the cost would be less than the total liability owed.


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