McCambridge Duffy provides debt help for Self Employed people. Read on to find out information on sole traders and how we can help with their debts.
A Sole Trader is the term used to describe a self employed business owned and controlled by one individual irrespective of whether there are any employees or not. As a sole trader you are personally responsible for all business debts, which as a sole trader are treated the same as personal debts. If your business fails or gets into financial difficulty you personally will be pursued for the debts and you could stand to lose everything including your personal assets.
It is relatively easy to set up as a sole trader, and the costs of running the business are much lower than more complicated businesses such as partnerships or limited companies. The main disadvantage to being a sole trader is the fact that there is no distinction between the business debts and personal debts, so the sole trader is personally liable for all debt and your creditors will pursue you personally for full repayment.
When a sole trader gets into financial difficulty there are a number of debt solutions available to them, such as debt management, an IVA or bankruptcy. The IVA legislation was launched in 1986 and was primarily created for self employed individuals struggling with debt. It was designed to allow viable businesses to continue to trade while returning monies to creditors. The IVA covers all unsecured debts such as trade creditors, overdrafts and any HMRC liabilities in addition to any personal liabilities such as loans or credit cards. Not only do the trade creditors and HMRC see a return on their outstanding debts, there is also the possibility of recovering even more as a result of ongoing trading.
HMRC are also very supportive of IVAs, they do however insist that all outstanding returns due for VAT, PAYE and self assessment are submitted before they will agree to the IVA. Ultimately, HMRC accept that individuals and businesses can get into financial trouble but there is no excuse for non submission of statutory returns.
If you are a sole trader and your business has got into financial trouble it is vital that you seek help from an insolvency practitioner [IP] as soon as possible. McCambridge Duffy has 4 in house IP’s that offer a free no obligation consultation to help put you and your business back on a sound financial footing while protecting your personal assets such as your home.
" I found McCambridge Duffy to deliver on what they said they would do and to do so quickly with a minimum of fuss. There were not endless phone calls and letters but they got the facts, assembled the proposal and put it in place very quickly. The process was made less stressful by the way in which they managed it."
Work out what your new monthly debt repayment could be by filling in our debt and budget calculator form.
Client was struggling with monthly debt repayments of £500 to several creditors. We were able to have this reduced to £250 per month, with all interest and charges frozen. In 60 months, any remaining debts will be written off and they will be debt free.
Click on the button to type a message to one of our live chat advisors. We are available now to answer any of your questions.
© 2021 McCambridge Duffy Insolvency Practitioners.
All rights reserved
McCambridge Duffy LLP is a Limited Liability Partnership
registered in England and Wales.
Registered number 0C309544
Registered office 17 Hanover Square, Mayfair,
London, W1s 1HT