Sole trader - BR due to VAT help

Taxinfo_2

Was wondering if anyone could assist. Due to economic downturn, increased prices of material, food and energy I can no longer sustain my small buisness with negligible profit, on top of that hmrc now insists I repay vat back from 2009 which I cannot possibly pay, I have contested against their case and they still insist I owe them vat from previous years :mad:. After doing some research on the net I found that these cases are likley to resort to tribunals with an upper tier success of 20% of mitigation.
I am seriously thinking that personal bankruptcy is the only way to deal with this problem. Can anyone shed some light on the pros and cons?

Thanking anyone helpful in advance

JCS1

Is the company limited or a sole trader?

Taxinfo_2

Sole trader

Thanks

Pobby

Wish you well as someone who also was not a limited company. I had a tax bill for £12,000 which I was not expecting and was unable to pay it. They gladly negotiated a payment plan.

Do you think that in time you could pay what you owe back? I am sure that rather than they getting little or nothing , they would enter into some sort of plan.

As a foot note. I would love to see the staff of the tax and customs departments running their own shows. Think a touch of the real world might change their attitudes.

Taxinfo_2

Thanks pobby, I feel ashamed to even suggest br, I have never had any dept in my life, I work hard and earn enough money to live on the breadline which I am proud of. I would never think of living off the taxpayer. The hmrc is in my opinion not being reasonable as there counter arguments suggest I'm not undertaking my buisness efficiently? They are telling me how I should run my buisness which I have been doing for way in excess of 30 years, times are tough and I want to just make it through the storm. Them suggesting I pay back 3 years worth of vat is ludacris, I'm barely staying afloat now. I don't know what they want??? Also my partner has a house in her name. I have no assets to mine both personal or buisness, is she at risk from this mess?

Thanks again

gas4you

Do you own your own home? If so have you any equity in it?

If the answers to the above is no, then go bankrupt, as there is nothing they can take from you.

If the answers are yes, then they could make you sell up to give them the equity.

There is no stigma in being bankrupt these days.

Taxinfo_2

gas4you wrote: »

Do you own your own home? If so have you any equity in it?

If the answers to the above is no, then go bankrupt, as there is nothing they can take from you.

If the answers are yes, then they could make you sell up to give them the equity.

There is no stigma in being bankrupt these days.

Hi I don't own no equity in the house, just a very old car worth nothing. The only thing I can't deal with is the vat bill. If I could I would of done it already. I feel like the government wants to make me redundant just so I can live off the state sometimes? Is that what they really prefer??????!!!!!!!!

Thanks

Tiddlywinks

So, what is the VAT assessment for? Did you use an accountant?

What is the nature of your business?

googler

Why didn't you settle the VAT returns in 2009 at that time?

I was reg'd as a sole trader a while back, and every 3 months I tallied input and output tax, sent the return off, with a cheque payable to HMRC if required, and that was it. Why didn't you?

Taxinfo_2

To the 2 questions above, I run a small food buisness and due to turnovers below 77k per annum I am exempt from paying vat, was visited by hmrc and from purchase records and they're buisness plans they have miss calculated my turnover by a huge margin and are arguing I am over the vat threshold. I have provided answers to all they're queries but most of their counter arguments are they in their 'opinion' it doesn't hold water. I feel like its a complete waste of money paying my accountant £k just to play ping pong with hmrc. Which is why knowing it is likely going to a tribunal with little success rate I would be better off declaring bankruptcy which is ashame as I enjoy working for myself and for a living of course.

I have an accountant which does my self assessment annually. And from the recent visit they are demanding I repay back the previous years vat even though they cannot prove it :S

The whole situation is very stressful to say the least, I have no criminal record, never done anything wrong in my life, i must admit I have had the odd parking ticket but never stepped outside the law, being accused of what I have done now knowing I can't defend myself without spending even more money which I can't afford is crippling. And makes me feel like I'm some criminal or somthing.

tigerfeet2006

Have a chat to these guys and see if they can help

• Business Debtline
  - Website: Business Debtline Telephone: 0800 197 6026
• TaxAid - Help with tax debts.