Self Employed in Northern Ireland but Living in Monaghan.

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Struggling2019

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I have a question maybe someone else has similar experience, or can advise me. Basically ive been self employed in Northern Ireland for about ten years, and I live in Republic of Ireland, Monaghan. Each year I pay tax to the UK HMRC and do UK VAT returns, as I am vat registered in Northern Ireland. Then I declare my nett earnings to the revenue Commissioners in Republic of Ireland, and pay income tax here too. However I find myself in a situation now where I have a UK VAT liability of £20,000 and a self assesment personal income tax liability of £10,000, total of £30,000. The HMRC have wrote to me at my business address in Northern Ireland and say unless I pay everything within 7 days they will apply for a Bankruptcy order in Belfast. I have about £2,000 of assets in northern ireland. However my home address is in Republic of Ireland, Monaghan, and here I have a mortgage balance of €385,000 of which €30,000 is in arrears from about 5 years ago, although ive made full repayments for the last 24 months, and the house has recently been valued at €160,000. Im currently going through the MARP with my irish mortgage bank and theyre looking for me to increase repayments from my current €1,800 per month, up to €2,500 per month while going interest only too. My mortgage for our house is also in my wifes name, we have no other loans or property, and we own a very modest 10 year old car, and a 11 year old van for my work. I wonder if the HMRC make me bankrupt in Belfast, what will happen my house and mortgage across the border even though its in such negative equity?
 

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You house is valued ar 160k but has an outstanding mortg of 385k. What did you pay for your house and when did you buy it?
 
Hi Jim, we bought our house in Monaghan back in 2008 for 360k, and around 2012 got into difficulty paying the full amount and went into arrears. We were on a high interest rate at the time and the interest alone was around 1,200 per month. We were both out of work for a few months, but got various jobs after a few months to make do and get some money coming in. Since we weren't making full mortgage payments we didnt get trs either, and the arrears piled up. We ended up, at the banks insistance, capitalising arrears, which brought the monthly payment even higher. That worked for a few months but then we went into arrears again. We have been in the MARP with the bank for a few years now, and have entered various agreements with them to commit to making monthly payments, which we have honoured, and never missed, and even paid extra at times when we could. However the bank just seems to string us along saying the case manager is considering a range of options, then they kick the can down the road for another few months by saying they need a new valuation, or that the sfs we filled in is now out of date, and so on it goes.
 
O/s mortg is €385k but you bought for €360k....apologies i might be missing something but how does that reconcile?

So value is €160k...even in the depths of a recession i dont think a house could drop so much in value between 2008 and today esp as there is a recovery in prices...

Sounds like its been undervalued.
 
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