Compliance Letter

dori2o

Bobby_Bouche wrote: »

Thanks to all for info. Full disclosure it is then!
Ordered bank statements from periods asked for. Accountant primed and ready.
Bankrupt in the next 12-18 months then!

That's not necessarily the case.

As Pennywise said a good accountant will look to end this asap and will ensure that you are claiming all relevant reliefs, and try to reach settlement with HMRC on all counts.

As an aside, a good compliance officer would also ensure that you are claiming the expenses etc that you are entitled to. They have to do in order to ensure that their assessment is strong enough to stand up to a Tribunal.

That doesn't mean they would come up with the same as your accountant as its dependant on what information the officer knows and is given.

Both sides want this resolved quickly. Officers in compliance don't want cases on their desk for months at a time and in most cases I find that settlement is the usual result.

Being honest and providing necessary documents in a timely manner is the best way to keep penalties to a minimum.

As this seems to be some form of discovery, I.e. HMRC have discovered this undeclared income, its likely that some level of penalty will apply.

Whether or not you use an accountant, once the final amount of tax/penalty/any interest is known, then you should be able to agree a payment plan with HMRC.

They will initially look for recovery over a maximum of 12 months, but clearly will be open to negotiation if this is not financially viable. You would however likely have to provide Income & Expenditure details to be able to agree repayment terms over a longer period.

I hope things work out for the best.

Bobby_Bouche

Just an update on this matter.
I sourced a good accountant and submitted tax for all the outstanding years.

HMRC was actually very fair and patient with me.
So now I don't have to worry about going bankrupt and my final tax bill and fine were quite reasonable.

At no stage did I feel able to do any of this without good professional help.
My accountant set a fee from start to finish including letters to/from HMRC, I did speak with another company but felt fees would mount up far beyond the initial quote.

If I could go back in time to the very first HMRC letter I would have got professional help straight away.
Instead, I worried myself sick for months instead.

So If you are in a similar position I advise you get help straight away. Do not bury your head in the sand as I did for a few months!

csgohan4

for others out there wondering, HMRC is big brother And will catch to you if you don't pay up eventually

https://en.wikipedia.org/wiki/Connect_(computer_system)