HMRC Sent me a Letter re Unregistered Business

uknick

Why assume a neighbour shopped you? For all you know someone at HMRC just happened to find your Facebook page and put 2 & 2 together.

Years ago the former lead singer of Iron maiden was done for benefit fraud through a YouTube video.

https://www.theguardian.com/music/2011/mar/11/iron-maiden-paul-dianno-jailed

I was working at DWP at the time and we were led to believe the video was spotted by a staff member in their own time whilst they were idling surfing YouTube.

hoping4calm

I know I have messed up but I had a cancer battle a few years ago and worry about the stress of all this on my life and health.

I just cannot believe they would go to such an extent as to ask me to pay so much back or threaten me with jail. Can I ask for any mitigation on health grounds? Would a note from my GP help in any way?

Has anyone here been through this before?

Astar1809

hoping4calm wrote: »

I know I have messed up but I had a cancer battle a few years ago and worry about the stress of all this on my life and health.

I just cannot believe they would go to such an extent as to ask me to pay so much back or threaten me with jail. Can I ask for any mitigation on health grounds? Would a note from my GP help in any way?

Has anyone here been through this before?

Unfortunately for you personal circumstances do not come into play when it comes to tax, You have very little chance of not paying in in full and jail time IS a real possibility due to the longevity and severity of the crime here, this is why people are telling you to be honest as its your best chance to avoid them throwing the full book at you.

Look it up, proven tax evasion is between 6 month and 7 years prison time so do your best to help them and not tempt them to go down that route.

The below is the official stance from HRMC

What are the penalties for tax evasion (UK)?
Depending on the circumstances, tax evasion can result in heavy fines and the maximum penalty for tax evasion in the UK can even result in jail time. Punishment and the average tax evasion sentence can vary, so below are a few examples of penalties that can be incurred:

Income tax evasion penalties – summary conviction is 6 months in jail or a fine up to £5,000. The maximum penalty for income tax evasion in the UK is seven years in prison or an unlimited fine.

spadoosh

hoping4calm wrote: »

I know I have messed up but I had a cancer battle a few years ago and worry about the stress of all this on my life and health.

I just cannot believe they would go to such an extent as to ask me to pay so much back or threaten me with jail. Can I ask for any mitigation on health grounds? Would a note from my GP help in any way?

Has anyone here been through this before?

And you are still looking for ways of avoiding your responsibilities.

Unfortunately a cancer battle a few years ago is not mitigation for not paying tax.

What did you think they would do, let you off? You owe tax, they will expect you to pay. If you dont pay tax that is owed, you risk going to jail.

I cant see a doctor willing to give you a note saying your health is at risk from a cancer battle a few years ago becuase you are currently being investigated. Never mind HMRC accepting that as mitigation. They wouldnt even if you had cancer right now, theyll still expect to be paid.

Only two things guaranteed in life, death and taxes.

Pennywise

hoping4calm wrote: »

I never imagined HMRC would care or be too interested in big companies to chase small fry like me. Surely they would prioritize much bigger companies making millions over me?

The official figures show the biggest component of the "tax gap" is the black economy, i.e. people like you, which totals billions of pounds of tax lost each year. HMRC have task forces etc targeting shops/takeaways, ebayers etc who havn't been declaring all their profits.

hoping4calm

ok, if I get an accountant, what is the likely cost of this?

Pennywise

hoping4calm wrote: »

I worry that they will want my records, can they really do this?

Yes, they can and yes they do.

kazwookie

Amusing


Tax fraud and avoidance


£30K or so over 20 years or so = £600K or so, plus £12 x 20 years approx, £240K = £840K @ 20% for the first tax then the rest @40% = £200K plus interest.


Just out of interest what did you do with the £30K per year?


You are in a MAJOR mess, as someone has already said get a proper tax accountant / then get them to try and limit the damage and payment you need to make.


The tax accountant will cost you, but then you have been making money, so must have some somewhere to pay up or of had the money.


I suggest you start ringing round to find someone who can help you, try the big accountants in a large town/ city near where you live and ask them how much they would charge, my guess is thousands.



Again what did you do with it?



HMRC will take a VERY dim view of tax dodging and if you don't pay up, they may take assets or take you to court and who knows where that may lead.


https://www.gov.uk/government/publications/penalties-and-other-sanctions-for-serial-tax-avoidance/penalties-and-other-sanctions-for-serial-tax-avoidance


Deleting your FB page will have no effect, as they will more than likely have screen shots etc already.

Pennywise

hoping4calm wrote: »

Why the heck would somebody report me :mad:

You don't know if anyone did. HMRC have been publicising their counter tax evasion plans for years. It was well known that they were getting info from Ebay etc as to their sellers, transaction history, etc., and they'll have been doing the same from other platforms too.

comeandgo

hoping4calm wrote: »

ok, if I get an accountant, what is the likely cost of this?

An accountant will not be cheap, I would think you are looking in the thousands area. They will have years of records to try and negotiate, it may be cheaper to just agree with the figures HMRC come up with and pay that. Would you have any expenses to reduce your profits?