Readers’ forum: Mitigating factors to avoid bankruptcy

Our 48-year-old company director client died suddenly last year leaving only a 25% share in what could become quite a valuable company.

His widow now faces three years’ self-assessment liabilities totalling nearly £10 000 derived from a salary and dividends from the family company. She cannot meet these and has no knowledge of the situation as her husband filed the annual returns and was somewhat secretive.

Would there be any point in letting HMRC know this or are readers aware of what other mitigating factors can be used to avoid bankruptcy? Phased payments supported perhaps by a solicitor’s undertaking comes to mind however I suspect not only are there no assets but no equity in the family residence.

Any advice would be appreciated.

Query 20 128 – DW.

Obtain more information before contacting HMRC.

DW needs to obtain the full facts before contacting HMRC. In...