Need advice on tax problem

Mailsa1978

My partner confessed to me the other night that he's not been paying tax for about 10 years. He gave me reasons why and I understood how the problem occurred but now he wants to correct the problem and fix the issue. We're both scared about sorting the problem and I personally have no idea what to do or were to start. I know he has his bank account and information of equipment cost, plus fuel cost with working self employed, but we're both scared the cost is going to be huge with his work being slow and low in cash of the bill is huge. Do they give sentences in prison if you can't pay. Need some advice please.

FTBFun

He needs to speak to an accountant and probably a solicitor ASAP.

antrobus

Your partner certainly needs to see an accountant if they want to bring their tax affairs up to date. It is not uncommon for people to approach HMRC and confess that they have failed to disclose any or all of their income in previous tax years. As a general rule, HMRC do not seek to prosecute in such cases.

Randvegeta

Not that I condone this, but what would happen if you just didn't declare it? Obviously I'm asking others, rather than the OP.

Why would you not be able to just start fresh? Again, I do not condone the evasion of TAX, but it is certainly a complicated and SCARY step for the OP to all of a sudden and out of the blue start declaring income for the last 10 years.

What's the worst that could happen if you just start fresh and say, 'okay, as of 2012, I will declare myself self employed and file for taxes properly'.

Presumably the OP's husband has not complete self assessment at all. He has, then that's serious fraud, BUT it does mean HMRC are probably happy with the way things are now (isnt ignorance bliss?).

Any way, just curious.

Mailsa1978

I think it's best we both compile all his information and put it in order to before visiting an accountant. Thank you for the advice, think a visit to citizen advice might be needed. You guys have helped thank you.

Mikeyorks

Randvegeta wrote: »

(isnt ignorance bliss?).
.

But they won't be ignorant any more. One of the first questions will be - 'why haven't you been on the radar for 10 years - where have you been and what have you been doing''?

Randvegeta

But they won't be ignorant any more. One of the first questions will be - 'why haven't you been on the radar for 10 years - where have you been and what have you been doing''?

- Living abroad?
- Living off savings?
- Living off money earned while abroad?
- Receiving gifts from friends/relatives?
- Living off the spouse
- Gambling income?
- Winnings from playing games (like gambling)?
- Won the lottery?

I'm sure there are more.

I'm off the radar now since I don't have a job in the UK and quite frankly I want to keep it that way.

My Dad, who is a UK citizen but a non-resident, was hounded by the GOV every year, sending him silly SA forms to fill out even though he wasn't in the country for YEARS. A bit off-topic I know, but I'd rather not have the bother.

spadoosh

Mailsa1978 wrote: »

I think it's best we both compile all his information and put it in order to before visiting an accountant. Thank you for the advice, think a visit to citizen advice might be needed. You guys have helped thank you.

Citizens advice probably won't be able to help you. Theyll give you websites and little info. They definately will not be able to work out how much tax is owed.

No disrespect to yourself or partner but looking at the situ of avoiding tax for 10 years id assume that your not too good with accounts. I would definately seek an accountant because its extremely unlikely your calculations will match theirs (ie theirs will be a lot less to pay) They do unfortunately have to/supposed to report it to SOCA (serious organised crime agency) with respect to avoiding tax. But i think its best to be honest at this stage.

If they find out your partner has been avoiding tax and he hasnt told them it will be more likely that he faces criminal charges and could face prison.

I would try and do everything in your power to correct this situation as soon as possible, delays and hiding more will make it worse or at least the consequences much worse.

Randvegeta

spadoosh wrote: »

Citizens advice probably won't be able to help you. Theyll give you websites and little info. They definately will not be able to work out how much tax is owed.

No disrespect to yourself or partner but looking at the situ of avoiding tax for 10 years id assume that your not too good with accounts. I would definately seek an accountant because its extremely unlikely your calculations will match theirs (ie theirs will be a lot less to pay) They do unfortunately have to/supposed to report it to SOCA (serious organised crime agency) with respect to avoiding tax. But i think its best to be honest at this stage.

If they find out your partner has been avoiding tax and he hasnt told them it will be more likely that he faces criminal charges and could face prison.

I would try and do everything in your power to correct this situation as soon as possible, delays and hiding more will make it worse or at least the consequences much worse.

If that doesnt tickle your fancy, then there's always moving country. OR:

- Living abroad?
- Living off savings?
- Living off money earned while abroad?
- Receiving gifts from friends/relatives?
- Living off the spouse
- Gambling income?
- Winnings from playing games (like gambling)?
- Won the lottery?

:rotfl::rotfl::rotfl::rotfl::rotfl::rotfl:

spadoosh

Randvegeta wrote: »

If that doesnt tickle your fancy, then there's always moving country. OR:

- Living abroad?
- Living off savings?
- Living off money earned while abroad?
- Receiving gifts from friends/relatives?
- Living off the spouse
- Gambling income?
- Winnings from playing games (like gambling)?
- Won the lottery?

:rotfl::rotfl::rotfl::rotfl::rotfl::rotfl:

And when they ask for bank statements?!

HMRC arent very good but there certainly not complete idiots, and at that stage you have to prove your income not the other way round.

I know your joking but this is quite a serious situation in which someone could end up in jail for a mistake they want to correct, any misinformation/misguidance should be avoided really.

Randvegeta

spadoosh wrote: »

And when they ask for bank statements?!

HMRC arent very good but there certainly not complete idiots, and at that stage you have to prove your income not the other way round.

I know your joking but this is quite a serious situation in which someone could end up in jail for a mistake they want to correct, any misinformation/misguidance should be avoided really.

Indeed I am joking, so I apologize to the OP if you thought my comments were serious.

To be perfectly honest with you, depending on how much money your husband earned, and how much tax you estimate is owed, and how much you have in cash to spare, would greatly affect MY decision as to weather or not I would come forward with HMRC.

For example, if you estimate taxes of 10,000 are due, and you are sitting one 100,000, then by all means, fess up and pay. That's probably the safest and easiest option.

But if you owe 100,000 and are sitting on 10,000, then you could be setting yourself up for some serious financial hardship by 'going clean'.

I'm not saying you, or anyone else should continue to evade taxes, but if I assume your husband has filed for self assessment every year for the last 10 years, and therefore understated his earnings, then as far as the TAX man is concerned, all is well. Do you really need that drama?

If on the other hand he hasn't even filed for SA, then this is a whole different problem and much more difficult to ignore, unless earnings were all in CASH rather than payments to a bank account. In which case (and yes I say this in humour):

- Living abroad?
- Living off savings?
- Living off money earned while abroad?
- Receiving gifts from friends/relatives?
- Living off the spouse?
- Gambling income?
- Winnings from playing games (like gambling)?
- Won the lottery?

:rotfl::rotfl::rotfl::rotfl::rotfl::rotfl::rotfl::rotfl: