Borrowing money for your tax assessment is more topical than ever, many people have bought a new house, but have not yet sold the old one. This means that at a given moment you may no longer deduct the interest paid from your tax return, which in turn means that it will be higher than you are normally used to.
If your tax assessment turns out to be very high, you will have to borrow money to be able to pay it pending the sale of your old house. Read where you can take out a reliable loan the best and the fastest and what kind of loan you can use.
Borrow money for your tax liability
If you already have a tax debt or have just received a proper tax assessment, then of course it is best to contact the tax authorities as soon as possible to see if you might be able to make a deferment, cancellation or payment arrangement.
With a payment arrangement you also pay interest on your tax liability but usually it is lower than when you have to take out a personal loan or a revolving credit.
Repay the tax debt
With a tax debt it is especially important that you pay it quickly, otherwise you will have to deal with all kinds of increases, interest and fines that will increase the amount even more.
If you prefer to pay quickly in one go and have to borrow for that, the best option is to take out a personal loan. You pay this back in a number of years, this way you have a low monthly charge because the total amount is spread out over a number of years.
With a personal loan you can pay a large amount in one go, that’s what this loan is for. You get the money deposited in your account and can then immediately pay your tax liability with it.
It does give a bit of rest if you can pay it off right away, because if you do not pay fast enough then all kinds of annoying letters will follow that will force you to pay. The interest rate of a personal loan depends on the amount you borrow, but varies from 3.9% to around 9% on an annual basis
Remission of the tax authorities’ debt
If you have a tax debt and you do not pay it quickly enough, a number of sanctions are awaiting you, it starts with reminders, you do not respond quickly enough that a bailiff’s visit follows and in extreme cases your property will be auctioned. You can apply for debt cancellation, but then you have to meet a number of conditions.
The tax authorities have a number of forms on the website that you can apply for remission. The forms are for remission tax, premium national insurance and premium disability insurance for self-employed persons.
Fill in the forms precisely, because if you make mistakes with this, your application will be irrevocably rejected.
Death of partner
While the death of your partner often causes enough stress and misery, you must also take into account a high tax assessment, especially if there is a house at stake that has already been paid for and you continue to live there alone. The part of your partner will then be in your name, but you will have to pay tax on that part.
So without getting one cent richer from it you can still look forward to a blue letter. This can also result in you having to take out a personal loan to be able to repay this debt in one go. If you need to borrow money for your tax liability then it is best to arrange this as quickly as possible.