Any self-employed person or business owner dreads a tax inspection, because any transgression can mean a massive bill. Many honest people have been driven into bankruptcy by a horrendous tax bill, which can mean losing their home, their livelihood and more.
Let’s analyze the different methods people opt when they face a Big Tax Bill and find out the right solution for you!
Х Wrong Solution: Selling your home through the Traditional Channels
When HMRC uncovers a major issue with your tax, they are not known for waiting for their money, so homeowners have found themselves issued with statutory demands and bankruptcy proceedings when they try to sell their home through the traditional channels. If that happens, all your debts are suddenly taken out of your hands and rolled into one huge number that is, effectively, due instantly.
Your business will be closed, your assets sold off and you’ll find yourself unable to make a living to support yourself and your family. Effectively, your home will be repossessed in any case, as if there is equity in your property, you will have to sell and the chances of finding a mortgage post-bankruptcy are severely restricted.
It can be a real snowball that, once it gains momentum, can create an avalanche of problems in your life.
- Administration Fees Make Things WorseWorse, by the time the administrators take their cut, you can often find that the money raised from your home won’t cover your debts and you’re left scrabbling for somewhere to live, a job, and then you can get saddled with an Income Payment Order that leaves you with virtually nothing once the essentials are dealt with for the next three years.
✓ Right Solution: A Quick Cash Sale Of Your Home
In almost every case, it would be better to settle the tax bill, which could mean a quick cash sale of your home is the best way to deal with the problem. With a guaranteed sale in all but the worst cases, you’ll have the revenue taken care of and a lump sum in your pocket that could give you a new start in life.
- Look To A Brighter Future
It means the taxman is dealt with, he will leave you alone, and you are free to continue running your business and trade your way to a brighter future. Of course, you will have to find an alternative place to live, like a smaller house or even rented accommodation, but your credit record will be unblemished, your business will be intact and you can take the tax bill on the chin and start again. Many people caught in the trap of a huge tax bill negotiate with HMRC, incurring interest along the way; they go the traditional route of selling their home and end up compromising anyway, accepting a lower amount. With the additional time, interest, worry and stress, many of them would have been better off with a guaranteed sale – the money in their pocket at the first possible opportunity and the chance to get out from the cloud above their heads.
- The Cost-Effective Solution For A Motivated Seller
Considering there are no fees, the legal bills are covered by the buyer, and the typical sale returns 85-95% of the market value of the home, a quick cash sale can be the most cost-effective way to sell too.
So if you have had a demand from the Taxman, or you know one is coming, you might be wise to Check how much you could get right now with a quick cash sale of your home!