Bankruptcy or agreed offer to Inland Revenue
My client, due to personal problems, has only just got round to filing the last 5 year tax returns! The IR has started to threaten bankruptcy over the estimated debt of £52K. The actual debt outstanding following the submission of all returns is now £8.5k.
We have contacted the Revenue to try to put a stop to the bankruptcy and come to some arrangement over the outstanding debt. He cannot afford to pay it all now and has no assets.
The Revenue has asked him to put an offer in writing for them to consider.
Does anyone know what a reasonable offer is bearing in mind he currently has very little work. My client has suggested £500 per month but my feeling is that is too low.
Any comments would be appreciated.
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