BR threat from the HMCR

dojoman

As the others have said you really need to do something ASAP, HMRC will not hesitate to start BR proceedings unlike most other creditors.

newyearnewme_2

I would close down the joint account ASAP and dis-associate you and your other half. As, HMRC will want the debt pqid back ASAP (normally over a course of around 1 year). You say some of the debt is from after you eased trading?
1) did you notify them?
2) if not can notify them now of the date you ceased as this may help to remove some of the arrears?
3) Have you got records from when you traded if so is it possible to put returns in then at least any debt is based on true figures and not assessments

holly_hobby

Its already been said ... and I can only reiterate that there are only 2 things unavoidable in life, death and the payment of taxes.

HMRC have far reaching powers - and although I know it does not help your case, but you really should have been putting away monies for tax and nic purposes when you were earning it (as I do myself).

Vat = well each quarter you get a VAT form to complete (compulsory on line March 2012), if you haven't traded you naturally just complete it with all zeros. If you fail to return it, you get reminders and also fined. Its an academic question now but why didn't you at least return this form when you were no longer trading ?

The simple facts here are that you have earned the income, yet not paid taxes, which we all have to do - HMRC will have little sympathy that you did not make provision or any attempt to pay os taxes , or make any attempt to do so before their threat of bankruptcy.

This sounds harsh I know, but I am self emp myself, and the first thing I do is put away monies to take account of all company outlay (corp tax & income tax, employer/employee Nics and VAT) - its simply foolish not to, as they have to be paid whether you have already spent the monies or not ..

You need to get some advice and negotiate a payment schedule. If you can get together a good sum of monies to pay it off in one go, you may be able to negotiate a discount on some of the interest that has been applied. NB - You will not be able to obtain a loan to pay off some or all of your tax bill

This won't go away - HMRC are powerful - so best to play nicely with them to minimise the fallout.

Speak to them and ask for help, they will think more of you and it may help your case, if they see that you acknowledge your error and are happy and want to be a willing participant in its resolution, (rather than them consider you a willing tax avoider), !!

Please make tackling this the first thing on tomorrows "to do" list - its vital that you grasp the nettle with this, as HMRC as already stated, will have little hesitation in filing for your bankruptcy - and this will have a far reaching and long lasting effect on any application for finance and in some cases employment.


Hope this helps & I wish you luck in settling this ...

Best wishes

Holly

peloloco

Thank you all, I shall be calling Tax Aid 1st thing Monday.

I can see a lot of it is VAT where they have been taking a guess but
I have not been trading in VAT for those years.


Kind Regards


P

acb

Hi

Please please do sort this out with HMRC they are a real nightmare to deal with. Hence me looking on this site my partner and I have been fighting HMRC for last year with 3 apperances in High Court the last now going to be in September.

Like you in 2006 we did not pay and to be truthful were stupid. In November 2007 started paying them weekly. My partners tax has been approx £4500 per year since 2005. Since November 2007 we have paid £34,931.33 yes that right a horrendous amount. We still owe according to thier figures £23,000 in VAT !!! This was suddenly adjusted at the last court appreance.

For two years they were quite happy to accept weekly payments as the figures were not being adjusted and the figures never seemed to go down despite payments being made. So I went to a Business Link Advice day on Tax Debt spoke to a very nice man gave me his business card. To cut a long horrendous story short I emailed him he looked at the account and confirmed the payments had'nt been allocated as they should have been causing more interest. This was also confirmed by the Debt Management Team in Worthing .I have managed to check on line every payment we have made since 2005. The difference of HMRC figures and the amount we have paid is £5432 which we have overpaid !!!!!!!. Yet no one will explain or talk to us properly why. The allocation of payments well, since Jan 2010 we have paid over £20,000 yet last week it showed £12.29 still outstanding from 2009 !!! yet we are up to date with the July payment due.

We have made complaints and even got the MP involved he agreed its an awful situation. HMRC well, all they say is "you owe it you pay it" even the top bods at HMRC as I can't name names lets just say they simply will not listen. They even wrote to the MP in a very patronising attitude. There is a particulay nasty individual in Worthing who has threatened to make my partner bankrupt by hook or by crook. I think our next step is the Ajudicator with our complaint. As for the HMRC Charter well thats a load of fiction.

My Partner has one credit card we are in the process of getting a loan. The Judge also said get your 84 year olds Mothers name off the deeds of her house and raise the money you have 3 months to do it and pay the money or I will make you bankrupt. Bloody awful. I must admit I had thought of going to the papers with our story.

Please though sort this out it has destroyed our family life I have been in hospital twice with suspected heart attack. Our last court apperance the solicitors from HMRC was quite frankly one of the worst days of my life and it makes me cry now thinking about it. They are the most awful bullies.

I wish you the best of luck dealing with them you must be very brave and have nerves of steel but you must be prepared to go back over the years and supply then with as much info as possible.

acb