Struggling to pay taxes aftr setting up business Tier1

[silhoutte]

Hi ,
I received my entrepreneur visa in 2013 , whereby i setup my own company and invested the required funds inot a business i took over. Unfortunately the business isnt doing very well and i am facing difficulty in paying the Council tax. I am planning to appeal using financial difficulty. Should i declare bankruptcy , if so then how will it impact my Tier 1 Entreprenuer visa status? Basically what are my options?

[hham1224]

You can claim small business relief up to 50% of the annual council tax.

I do not recommend to go for the bankruptcy as this will seriously harm your credit history i.e. no loans, no credit, no phone contract, no directorship, in other words it will be hard for you to live in the present time. Think million times before going for this.

[silhoutte]

Thanks Hamm ad for your reply,
I think my business does not classify into a small business category. I think in terms of area I have a bigger commercial property.is there any other recourse apart from bankruptcy or small business rebate? I agree bankruptcy is not an option.

[Olasunkanmi]

@ silhoutte, you ask this question ''Should i declare bankruptcy'',

How on earth do you want to declare bankruptcy over council tax debt except if you have some other big debt problem which you are not telling us. Why don't you move to another business if your present business isn't turning profit.

If I may ask, how much council tax are you owning the council?

[silhoutte]

I have no debt apart from council tax for the year and VAT. I had already submitted a finsncisl hardship form and wanted to know what my options are. Obviously bankruptcy id not an option which brings me to my next quedtion.How does one move to another business in terms of procedure involved.thanks

[MTZ510]

I have no debt apart from council tax for the year and VAT. I had already submitted a finsncisl hardship form and wanted to know what my options are. Obviously bankruptcy id not an option which brings me to my next quedtion.How does one move to another business in terms of procedure involved.thanks

The best way to move on is to sell your existing business. You said that you bought this business from some one and now its going in loss, so sell it to some one who can make it profitable. I know you might no get the best price but keeping in view ongoing losses you can decide to cut your losses by selling it out.
You have mentioned that you have a commercial property is it owned? or on lease? With limited information all i can say is to sell this business and look for some thing else.

On a separate note can you please share how did you accounted the payments made to vendor who sold you this business. Did you bought his limited company or just business?