Self employed - sole trader

mardatha

Friends son is sole trader and in a mess financially. He told her he cannot pay his tax bill and they wont let him do instalments. He told them he hasn't got it - What happens now and what powers have the tax people got? We're in Scotland btw.

chrismac1

This is the sort of line I have successfully run in the past 3 months with 3 separate clients - note it is important that it is true and honest.

"My client owes you £5,000 in tax and has other creditors and no assets worth speaking of. He / she has offerred to pay you £500 per month until the balance is cleared. I believe he or she will stick to this pledge.

Alternatively, you can spend money going through the Courts and end up with more or less nothing if you bankrupt the client / liquidate his or her company. In my professional opinion the UK Treasury's best option is to accept my client's offer."

I put this stuff in writing. It's what I call the "George Osborne" angle. If the officer then decides to carry on playing hardball, their arrrse is personally on the line if I write to their superior / my MP / George Osborne pointing out the commercial realities.

Beleive me, no-one in HMRC ever wants their arrrse on the line for even the smallest decision. So far this plan of attack has staved off two company liquidations which were "imminent within a week" - one from Nov 11 and one from Jan 12 - and one personal liquidation from Feb, so at this stage we can't be sure if the third one has worked yet.

mardatha

Ok thanks will pass that on, its an idea

Skint_yet_Again

The following link is what to do if cannot pay:

http://www.hmrc.gov.uk/payinghmrc/problems/cantpay.htm

If HMRC refuse a request for extra time to pay there is no right to appeal. However you can make a complaint

http://www.hmrc.gov.uk/complaints-appeals/how-to-complain/make-complaint.htm


This link will explain what will happen in cases of "failure to pay a demand scotland"

http://www.hmrc.gov.uk/payinghmrc/problems/dontpay/debts.htm

Hope this helps.

mardatha

Thank you! will pass that on