Paying a Ltd Company that you know isn't paying it's Tax.

AdminQueen

Hi there,

We have recently discovered one of our suppliers isn't actually paying it's taxes. Not through some legal loophole - they just aren't paying.

As a Ltd company ourselves we ensure everything we do is 100% above board and are now reluctant to deal with this supplier.

The trouble is we owe this supplier some money and don't want to pay it until we know they are compliant. If we did go ahead and pay it, knowing they wouldn't be paying any tax, could we get into trouble?

Thanks for any advise,
AdminQueen.

malc_b

It's hardly up to you. It's HMRC business. Unless this just a troll as you want to avoid paying your bill? Your responsibility stops with telling HMRC of this.

heretolearn_2

Their tax situation isn't connected to yours. Pay them.

Lovelyjoolz

Their tax situation is none of your business. Your obligation is to pay for goods and services received in a timely manner.

Pay them.

How do you know so much about their tax affairs anyway?

AdminQueen

Thanks for the replies.

I just want to make sure that if we pay this company knowing they won't pay tax no one could come back to us and say we have collaborated with them.

earthstorm

AdminQueen wrote: »

Thanks for the replies.

I just want to make sure that if we pay this company knowing they won't pay tax no one could come back to us and say we have collaborated with them.

the only way them not paying their taxes would effect you is if they are served with an insolvency notice (closed down) for not paying taxes, therefore leaving you to find another supplier.

John_Pierpoint

Are we talking VAT here and the possibility of :

http://www.kpmg.com/global/en/issuesandinsights/articlespublications/taxnewsflash/pages/eu-measures-to-counter-carousel-vat-fraud.aspx

Danny_G

AdminQueen wrote: »

Hi there,

We have recently discovered one of our suppliers isn't actually paying it's taxes. Not through some legal loophole - they just aren't paying.

As a Ltd company ourselves we ensure everything we do is 100% above board and are now reluctant to deal with this supplier.

The trouble is we owe this supplier some money and don't want to pay it until we know they are compliant. If we did go ahead and pay it, knowing they wouldn't be paying any tax, could we get into trouble?

Thanks for any advise,
AdminQueen.

How did you find out they aint paying their tax?

and get into their tax info ?

spacey2012

You could just buy your coffee elsewhere, they are other non star coffe shops worthy of your bucks

paddyrg

Keep your own books clean, pay your bills, you've nothing to worry about.

CKhalvashi

paddyrg wrote: »

Keep your own books clean, pay your bills, you've nothing to worry about.

Spot on advice here!

My accounts are clean, and I really don't care if those I'm dealing with (provided they are VAT registered) aren't, as I'm not legally connected to it.

CK