Mum's gone to the High Court

A well known (apparently) celebrity chav slapper has been declared bankrupt for the non payment of her taxes. Whilst advisers all over must be wondering over how the hell that happened (or, more likely, thanking their lucky stars they do not have the misfortune to act for her) there is, perhaps, a timely reminder to be had for us mere, ordinary folk who are not so fortunate as to rake in a few million quid for flogging frozen junk food.

With finances being tight for many, the temptation to string out one's creditors is always going to be present. To this end, the Revenue has long since taken umbrage at being used as an involuntary source of ready borrowing and, all the more so by those who the Revenue perceive to be maintaining a level of lifestyle way beyond the means of civil servants, whilst still, of course, pleading poverty. We never cease to be amazed at the lack of perspective some people display when their attempts to justify the necessity of any number of luxury, high cost items fall on the death ears of a civil servant on an average wage and in a polyester suit.

With the Revenue adopting an increasingly aggressive approach to both the assessment of taxes, and their collection, many people would be well advised to consider their cashflow planning. We are now, for the first time since the introduction of self assessment, in a recessionary climate and one in which looking to pay last year's tax out of this year's income is really not a good idea (if it ever was).

With the potential for surcharges and interest on unpaid taxes to be considerably more expensive than the costs of alternative finance, some people, and, in particular, the relatively newly self employed facing their first large tax payment in January 2009, will need to be looking ahead and attempting to plan their cashflow accordingly. Others could be well served by reviewing the levels of their payments on account, and their choice of accounting dates. All could do with not leaving their tax return preparation until January, only then to find out they have a tax bill they were not expecting and for which they have barely a few days notice in which to find the funds to settle the liability.