HMRC self assessment tax debt

Booboo18

Hi guys

This is my first post so not sure if this is the right section to post

I was self employed director through my own Ltd company.
For 3 years I worked on building sites and was getting paid directly to my Ltd company bank account. The contractor was deducting 20% cis tax. I completed self assessment returns on my personal tax account from the money I got paid through my Ltd company. With expenses, tools etc I got roughly £4000 a year back,

Anyway HMRC started investigating and basically said that I owe them around £32000 with penalties included. They have been a bit hard to deal with demanding money etc, it is now in to the enforcement stage. They have been to my house but I wasn’t home so they hand delivered a letter saying they will take goods if I don’t pay them. I tried setting up a payment plan but they said no I need to pay off a lump sum first. I have the lump sum of about £20000 that I borrowed off family so I will owe around £12000, which will work out £700 a month for 18 months.
I don’t own any assets of value.
My question is, is it best to transfer the money to my OH and just go bankrupt or pay the lump sum etc.
I’m looking for advice and people that have been in similar circumstances

Thanks

Norman_Castle

If you've borrowed the £20,000 from friends and family returning it to them rather than to your OH would be better.

Booboo18

Sorry it wasn’t borrowed it was given

BoGoF

So firstly you defraud the taxman and now want to deceive the OR.

MEM62

Struggling to see how you would rack up £32K in unpaid tax in just three years - particularly when 20% has already been deducted by your 'employer'.

Can you expand on how HMRC arrived at this?

Booboo18

Hi MEM62

So they investigated me and found that I underpaid tax around 10 k got a penalty for 12k and and had to pay back the 3 years worth of self assessment repayments that I took around 10-12k
Like I said I was getting deducted 20% CIS from agency’s through my Ltd company UTR but I claimed back the expenses through my personal UTR.

So the tax was paid I just did it the wrong way, I didn’t pay myself a wage or anything either. I am simply a electrician getting paid Ltd through contractors

Any help is appreciated
TIA

Mouse007

Where did you declare the income you received from your compnay on your personal tax return?


Dividends

or self employed income ?


Did the company file its tax returns ?

Joewasherein2019

So it’s the expenses of you paid 20% I’m confused to see how you owe anything in tax it’s more expenses been claimed incorrectly?

Joewasherein2019

Did you use accountant?

Minkym00

Beware. If the OR discovers that you had £20k of assets that you “disposed of” i.e transferred to your wife, shortly before declaring bankruptcy then you could be looking at both a bankruptcy offence and a criminal offence. They will look at your bank statements.

The prolixity of disposing of the asset to the bankruptcy order would be an aggravating factor and I would think you’d be getting a BRO of 6-8 years.

Booboo18

Filled the money earned through my company on my personal tax return