Not paid tax for 10 years. Help!

taxing

HMRC have an amnesty for plumbers at the moment BUT it has been extended to cover all trades so I suspect your trade would come in to it, too. Details at www.hmrc.gov.uk/trades-disclosure/index.htm
You have until 31 May to register to use the disclosure facility and then need to make the full return and pay the tax you owe by 31 August 2011. You will be given the opportunity to spread the payment if you cannot pay all at once and the penalty will be lower for a voluntary disclosure. There is a link to more information and a calculator at www.hmrc.gov.uk/trades-disclosure/guidance.htm
You can deal direct with HMRC if you want to but I would strongly recommend that you seek out professional help.

patman99

Personally I would get your accounts put together by a book keeper and then go see an accountant.
I used to work with an ex-accountant (he got divorced so his ex liquidated the company). Both he and his accountant brother used book keepers to do the hard work, then pass the bill on as though they had done the books.

When it comes to NI, you have a choice of Classes, Class 1 entitles you to claim benefits when not working, as you pay the same as a PAYE, Class 2 is a token payment (I believe it is about £9 p/y). With Class 2 you can't get any benefits when the work dries-up.
As you need to pay full (C1) NIC for a minimum of 2 years in order to qualify for benefits, then I would suggest that when you speak to your accountant you tell him you wish to pay NIC 1 for the last 3 years and NIC 2 for the rest.

taxing

patman99 wrote: »

Personally I would get your accounts put together by a book keeper and then go see an accountant.
I used to work with an ex-accountant (he got divorced so his ex liquidated the company). Both he and his accountant brother used book keepers to do the hard work, then pass the bill on as though they had done the books.

When it comes to NI, you have a choice of Classes, Class 1 entitles you to claim benefits when not working, as you pay the same as a PAYE, Class 2 is a token payment (I believe it is about £9 p/y). With Class 2 you can't get any benefits when the work dries-up.
As you need to pay full (C1) NIC for a minimum of 2 years in order to qualify for benefits, then I would suggest that when you speak to your accountant you tell him you wish to pay NIC 1 for the last 3 years and NIC 2 for the rest.

Sorry, this is mis-information. The only type of national insurance you can 'choose' to pay is class 3 voluntary , currently £12.05 per week. You would only do this if not in a job (where you have class 1 nic deducted through payroll by a legal obligation placed on your employer) or self employed where you then must pay class 2 nic which is currently £2.40 per week. (there are exceptions for low earnings - below £5075 per annum - which you need to claim, otherwise you pay).

In addition the self employed pay class 4 nic - this is basically additional tax as it doesn't accrue any social security rights or benefits. It kicks in after profits of £5715 and you pay 8% until your profits reach £43875, then the rate drops to 1% on remainder. This is in addition to the income tax due on your profits.

GO SEE A PROFESSIONAL.........a Chartered Institute of Taxation member - chartered tax adviser (CTA) or a qualified accountant will give you correct & proper advice, and help negotiate a settlement with HMRC. Use the plumbers amnesty mentioned above.

bonethrower

Breakingpoint wrote: »

Now I don't know what to think!

My main problem is I Know I am not going to be able to afford anything they ask for which is the problem.

Your plan appears good but I know it's only going to end up with me jail and I am far too good looking for that. :P

I'm going to throw you a major bone here, so pay attention!
Believe it or not, in the UK we are governed by consent, and all acts and statutes on taxation etc, require our consent to be valid in a court of law.
The reason you were left alone by HMRC is that all tax laws basically boil down to contract law, and if there is no valid contract, the law cannot be enforced. When you register something with a government agency, you are passing ownership to that agency, and must adhere to the terms of the contact (registration). No contract = no agreement with HMRC = no legal enforcement possible. What can happen is you will be tricked into thinking you're getting a large bill and will also be fined, and that you should register immediately, but as soon as you register the contract is in place and UK tax law now applies to you. You could choose to register a new business from this day forward and get your affairs in order, but withold information about your perfectly lawful private activities over the last 10 years. Tax laws only apply to registered businesses and employees of registered businesses, as HMRC owns them through the registration process!
That was more of a large spanner than a bone, and many of you won't like it, but the truth sometimes cuts deep, and often the solution is staring you in the face.
HMRC are only owed the amount you agreed to pay???
This document will self destruct in 10 seconds!

Randvegeta

bonethrower wrote: »

I'm going to throw you a major bone here, so pay attention!
Believe it or not, in the UK we are governed by consent, and all acts and statutes on taxation etc, require our consent to be valid in a court of law.
The reason you were left alone by HMRC is that all tax laws basically boil down to contract law, and if there is no valid contract, the law cannot be enforced. When you register something with a government agency, you are passing ownership to that agency, and must adhere to the terms of the contact (registration). No contract = no agreement with HMRC = no legal enforcement possible. What can happen is you will be tricked into thinking you're getting a large bill and will also be fined, and that you should register immediately, but as soon as you register the contract is in place and UK tax law now applies to you. You could choose to register a new business from this day forward and get your affairs in order, but withold information about your perfectly lawful private activities over the last 10 years. Tax laws only apply to registered businesses and employees of registered businesses, as HMRC owns them through the registration process!
That was more of a large spanner than a bone, and many of you won't like it, but the truth sometimes cuts deep, and often the solution is staring you in the face.
HMRC are only owed the amount you agreed to pay???
This document will self destruct in 10 seconds!

Got anything to back this up? It's a wonderful idea but I wouldn't risk running my affairs without something to back it up. And it best be solid!

On a separate note, I'm not in, and have never been in the system (meaning UK tax system). Never been on PAYE and not regsitered as self employed and don't file self assessment. How's that going to look if I apply for a job one day?

PlutoinCapricorn

This thread is more than 1 year old, so the original poster has probably sorted everything out by now - I hope!

I wonder what the HMRC people on this forum will think of this 'major bone'.

bonethrower

Randvegeta wrote: »

Got anything to back this up? It's a wonderful idea but I wouldn't risk running my affairs without something to back it up. And it best be solid!

On a separate note, I'm not in, and have never been in the system (meaning UK tax system). Never been on PAYE and not regsitered as self employed and don't file self assessment. How's that going to look if I apply for a job one day?

You need to see past the fear of HMRC and understand what the real problem is. I do own a registered business, and i do pay tax & nic's, but i subscribe to the theory of understanding the game before you agree to play. If you were taken to court by HMRC, once you see past the legal jargon, it would simply be for breach of contract, and for that to stick, there must be a legally binding contract in the first place. The real eye opener is the registration process, what most people don't understand, is that you are handing over your right to be in business, in return for limited rights with conditions attached. That 'slight of hand' registration process also applies to many other aspects of our daily lives. Chew on that for a while and draw your own conclusions.

bonethrower

bonethrower wrote: »

You need to see past the fear of HMRC and understand what the real problem is. I do own a registered business, and i do pay tax & nic's, but i subscribe to the theory of understanding the game before you agree to play. If you were taken to court by HMRC, once you see past the legal jargon, it would simply be for breach of contract, and for that to stick, there must be a legally binding contract in the first place. The real eye opener is the registration process, what most people don't understand, is that you are handing over your right to be in business, in return for limited rights with conditions attached. That 'slight of hand' registration process also applies to many other aspects of our daily lives. Chew on that for a while and draw your own conclusions.

EDIT: HMRC actually has 'legal' ownership of my business.

FTBFun

bonethrower wrote: »

I'm going to throw you a major bone here, so pay attention!
Believe it or not, in the UK we are governed by consent, and all acts and statutes on taxation etc, require our consent to be valid in a court of law.
The reason you were left alone by HMRC is that all tax laws basically boil down to contract law, and if there is no valid contract, the law cannot be enforced. When you register something with a government agency, you are passing ownership to that agency, and must adhere to the terms of the contact (registration). No contract = no agreement with HMRC = no legal enforcement possible. What can happen is you will be tricked into thinking you're getting a large bill and will also be fined, and that you should register immediately, but as soon as you register the contract is in place and UK tax law now applies to you. You could choose to register a new business from this day forward and get your affairs in order, but withold information about your perfectly lawful private activities over the last 10 years. Tax laws only apply to registered businesses and employees of registered businesses, as HMRC owns them through the registration process!
That was more of a large spanner than a bone, and many of you won't like it, but the truth sometimes cuts deep, and often the solution is staring you in the face.
HMRC are only owed the amount you agreed to pay???
This document will self destruct in 10 seconds!

What a load of toss.

I_know_my_ABC_and_my_CMYK

bonethrower.

It's all well and good coming out with statements such as these but you really do need something to back this up, otherwise it helps no one and this site is about helping people.