Tips on Managing your Tax Debt
When you've done all the preventive and mitigating measures you could such as cutting costs to manage your taxes, some tax debts may still persist as a problem for your medium enterprise. The longer your tax debt stays, the more it becomes a threat to the stability of your business and life. Check out these tips know the affordable solutions to address debt management:
Discuss with your lender
No matter what happens, don't default or miss payments. Carefully explain to your lender why you're currently unable to pay, instead of just disappearing or blocking contact with them. You may face grave charges if you're deliberately escaping the debts that you need to pay.
Get government assistance
If you don't want to opt for commercial debt, there are two government schemes which can give you interest-free borrowing—local council support schemes and budgeting loans. The former grants each local authority the permission to help residents in an emergency situation, i.e. health problems, food security, hospital and prison concerns. However, this is a postcode lottery, meaning each council can decide who is eligible to receive financial help. On the other hand, budgeting loans and advances give interest free loans to those on income-based benefits for things that you cannot pay for in a lump sum, including but not limited to clothes, home accessories and furnishings.
Check secured loans
Before you choose this solution, be warned—a consolidation or secured loan may sound inexpensive at the beginning, but the rates are variable and the prices may skyrocket to a point that you won't be unable to catch up with the payment. In very rare situations, you can use this to cut interest rates of expensive debts and credit history issues.
Safe and rent back
With this option, you can sell your property (e.g. house) to a company, but you can still live there by paying rent. While it seems like a good deal on the surface, the security can be quite shaky. There's a high chance that you won't get 80-100% of your home's real value, and there might be loopholes in ambiguous arguments which can make you lose your property.
If you think any of the options above cannot precisely solve your tax debt problem, it’s time to get debt advice from the experts in the field. It’s always recommended to consult with financial advisers on dealing with your tax debts, since their knowledge and experience enables them to link important factors and options that you weren’t able to see before. Avail debt counselling to find the most feasible solution to deal with your tax debt problems.
With the help of expert financial advisers, you can get viable debt advice that corresponds to your needs and resources. Make sure you have all the information you need by getting in touch with D&V's experienced finance and accounting professionals. Contact us now.