Taxation problems

hcrunchie

Hi, this is my first post and something that I have felt needs dealt with as it has been going on sometime and I am becoming increasingly worried about it.

The story starts about 20 years ago when I was a single, happy go lucky guy of 30 years. I had left a regular job where my tax and nat ins had always been dealt with to become self employed in the construction industry. Well I subcontracted my work and tax was deducted at source prior to me being paid, and I thought that this was fantastic and that I had nothing else to do.

Well this situation went on for some 8 or 9 years, until someone said to me that I should have been making tax returns. Maybe I had been naive but I assumed that I did not have to.

So instead of throwing myself prostrate at the tax mans feet, I bottled it and continued, but also my status changed from being tax deducted at source to being fully selfemployed and working for various clients up to the present day.

I have not earnt great amounts over the years, probably averaging at 12/15k per year. Now I have a partner and children, shes paying her tax but does know something of my story, so it should not be too problematic with her.........I am trying to get sorted because of her and the kids and know that I must face the music.

With my non payment of tax, I have not been claiming, or able to claim, as a family the various tax credits that we would probably be entitled to, and am also worried because my eldest is about to enter the phase of her life that includes university.

Looking for honest and constructive advice. Thank you

xylophone

http://search2.hmrc.gov.uk/kb5/hmrc/contactus/results.page?affinity=2042

Get together all your information and get in touch with HMRC.

alwaysonthego_2

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antrobus

hcrunchie wrote: »

....The story starts about 20 years ago .....

Oh crumbs! That's one heck of a back duty case.

The good news would be that, for that ten years or so that you were getting paid through the CIS, then HMRC probably owe you a tax refund. (You'll likely have had basic rate deducted on all your earnings, without any account being taken of your personal allowance).

Of course for the decade that you were 'fully selfemployed' you will owe them tax. And the bad news is that you owe 20 years worth of flat rate NI contributions.

Best advice, get yourself an accountant. Preferably one who doesn't go pale and look like fainting when you tell him there's 20 years to deal with.

hcrunchie

Ok, thank you for advice so far:)

Looks like the course of action is to go chat with tax man. I see the point with the accountant. Is the actual cost that this will incur going to be worth the help received? A lot of the info needed for this chat could be long gone too.

And on another but crucial point for me. Is there a danger that I might get sent to prison?

Thank you in advance for your help

PlutoinCapricorn

HMRC are easier on people who step forward to report themselves and co-operate with them, as opposed to being caught.

There may be interest and penalties to pay, but you can sometimes arrange payment plans. Going to prison seems to apply only to a few people who deliberately evade tax on a very large scale. HMRC just want what you owe them.

If you have records for these years, the self employment expenses may bring your profit down and this will reduce the tax owed. Doing an archaeological reconstruction may be time consuming, but it needs to be done and will give you peace of mind.