Business Debtline is the UK’s sole free debt advice service for self-employed people and small businesses, run by the Money Advice Trust. Offering practical self-help as well as tools and resources, Business Debtline aims to assist with debt problems by offering advice, practical help, and resources designed specifically to assist them.
Utilizing their website, you can access information, fact sheets, a budget tool for both household and business use and debt advisers that can provide personalized solutions tailored specifically to you. They even offer phone or webchat consultation services so that they may assist with finding a solution tailored specifically to you and your situation.
Sole trader
Sole traders are self-employed individuals responsible for running their own business on an everyday basis. While they do not pay Corporation Tax or submit company Tax returns, they must maintain accurate accounting records to provide an accurate picture of profits earned and expenses incurred by their business.
Sole trading can be an excellent option for people looking to start their own business, providing flexibility and freedom in decision-making. However, sole traders have unlimited liability which means they are personally liable for all losses and debts of the business they run alone.
However, sole traders are still permitted to take out loans and hire employees to assist with running their businesses. Before taking out any loans however, sole traders should ensure they have enough funds available so as to cover repayment of debt; failing which, this could result in them losing personal assets to repay any outstanding balances.
Partnership
Partnerships can be an ideal way of running a business, providing more flexibility than operating independently. They make raising capital simpler by inviting additional partners in and are usually tax-friendly structures.
However, like any business venture, partnerships may present their own set of unique challenges. You should make sure to understand all your options and seek support when necessary.
Un appropriate debt advice service can assist in helping to resolve any trading challenges and help keep your business operational.
The Money Advice Trust, the charitable organisation behind both National Debtline and Business Debtline, offers free and confidential support to self-employed and small businesses alike.
Their website is packed with useful information, fact sheets and resources that you can utilize. Furthermore, you can call, email or webchat with one of their specialist advisers to find out what services they have available – maybe even finding solutions to some of your more complicated financial questions! You can also utilize online tools and calculators from them in making informed decisions regarding your finances.
Limited company
If you are operating a limited company, Business Debtline can offer assistance in managing debt. This charitable organisation managed by the Money Advice Trust provides assistance for self-employed people and small businesses seeking assistance in dealing with their debts.
An initial step in managing debts is creating a budget for both your business and household. Doing this will allow you to identify where there may be areas for savings while simultaneously aiding negotiations with creditors.
Your business should exist as an independent legal entity separate from you so it can be legally shielded against personal liabilities and assets, protecting it in case it goes into administration or is sued, eliminating the need for you to sell off assets in order to pay any outstanding debts.
Companies House requires limited companies to submit regular filings such as accounts and confirmation statements that can give an indication of how your business is faring. Public viewing provides you with an insight into its performance.
HMRC
Her Majesty’s Revenue and Customs (HMRC) is an independent non-ministerial department responsible for tax collection, payment processing and customs duties. HMRC collects funds for Treasury while also providing targeted financial support to individuals and families in need.
Authorities hold various responsibilities that involve collecting taxes such as income tax, Corporation Tax, VAT and stamp duty land tax as well as administering forms of state support such as Child Benefit and Tax Credits.
HMRC strives to collect and pay taxes impartially and efficiently. However, dishonest minorities may attempt to dodge their obligations, so HMRC stands ready to take legal action against those who try to dodge paying their dues.
If you find yourself owing HMRC money, contact their business debtline by phone, email, webchat or email for advice and assistance. They can even help set up a payment plan so your debt can be paid in installments.
