HMRC bankruptcy letter received

TTR

Hi
I have had on/off contact from hmrc since 2013 regarding non payment of capital gains tax on 3 properties I bought and sold consecutively in 2006 to 2008. I didnt pay any tax as I was living in a rental property and each property was owned solely ( I wrongly believed this meant I didn't have to pay CGT ) . When they first got in touch in 2013 they had the purchase and sale figures for each property from the land registry so were suggesting I owed CGT on a figure of approx 350k. They asked me to give them figures for my costs in the refurbishment work and legal costs in the buying and selling. I didn't keep any labour or material receipts so told them I would have to try and remember and make up the numbers. I gave them these numbers and they then came up with a number. My debt to them is now approx 28k. At the time they approached me I was and am unable to pay the debt, I was in a depressed state and on anti depression medication and feel that my guessing of figures was unfair. Also the properties were bought with equity from a house sale and the money was both mine and my soon to be ex wives. They arent going after her for this debt.
They sent me a letter warning bankruptcy in April which i have only just read as it was at my ex partners house. Since that letter was sent I have had a phone conversation in July with a hmrc debt collector who said that she would report back that I am not earning enough to go into a monthly agreement and that at the time I was of no fixed abode. My questions are; Can I contact them and tell them that I feel the figures I gave where given when I wasn't of sound mind ( I also didn't put in any charge for the time I spent doing up each property.)
I didn't put in any tax returns from 2005 to 2009. Can I raise objections as to the fact that they are only coming after me? I haven't given the tax office my new rented address although they maybe able to find it via council tax should I give them it? I am worried that they could send debt collectors and take my old car, furniture etc. I am sorry if this is a bit of a ramble.

Bluecar2

Hi cant offer much advice about your personal circumstances, but i also had problems with HMRC and no they wont come round and take your car etc but they are very likely to make you Bankrupt if its what they have threatened, I would say dont hide from it but try and contact them, In my case they wouldnt agree a payment plan and did make me bankrupt, If i had my chance again i would have petioned it myself and saved a lot of headaches

TTR

Hi,
My circumstances are that I now don't own a property or much if anything that they can take. Am i being naive to think that by them making me bankrupt it saves me the cost of filing for one by myself and that its a good step to getting the whole thing off my back? . The bankruptcy doesn't worry me.

Pennywise

TTR wrote: »

I didnt pay any tax as I was living in a rental property and each property was owned solely ( I wrongly believed this meant I didn't have to pay CGT )

As you now know, you need to live in the property for it to be exempt from capital gains tax.

TTR wrote: »

Can I contact them and tell them that I feel the figures I gave where given when I wasn't of sound mind

You could give them the correct figures and ask them if they're substitute the correct figures for your earlier estimates.

TTR wrote: »

( I also didn't put in any charge for the time I spent doing up each property.)

Your own time isn't an allowable deduction so is irrelevant.

TTR wrote: »

I didn't put in any tax returns from 2005 to 2009.

Which is why they've come after you with their assessments/determinations. Why didn't you submit tax returns at the time?

Where did the money go from the profit on those properties?

Bluecar2

Having had HMRC petion my Bankruptcy and all the headaches and hassle they have caused while waiting i would 100% pay for it and get it done and finished with and be in control, I to had nothing for them to take and thought that they wouldnt go ahead with it as there was nothing to gain, they messed it up so much it was embarrasing, it was postponed 3 times due to there incompency and i was left in limbo for 8 months with other debtors chasing me as i stopped making payment to everybody the month before the original hearing date so i had some money to spare, they were also charging me interest on a daily basis and fining me sometimes upto a £1000 for the court postponment even though it was there fault each time that the judge threw it out of court, once it was done i had to face a 3-4 hr face to face interview rather than a 1 hr one on the phone

TTR

Which is why they've come after you with their assessments/determinations. Why didn't you submit tax returns at the time?
I didn't submit returns as I received incorrect info that as I was in a rental property the new bought property was my one and only owned so CGT wasn't a concern.

Where did the money go from the profit on those properties?
I do feel that my current circumstances aren't a concern of this enquiry however I was in a marriage where the wife was in charge of finance and liked lots of holidays and living the high life.

Cavalino

I know rules are rules but HMRC are like vultures circling ready to tear the shirt off your back.

gary83

Cavalino wrote: »

I know rules are rules but HMRC are like vultures circling ready to tear the shirt off your back.

Paying tax isn't optional though. If HMRC was a soft touch, or if there were no consequences for not paying the tax that you are liable for then why would anyone pay it? The system goes after everybody to pay what they were due to pay.

BoGoF

You're lucky you are not being prosecuted for tax evasion.

Sounds like you are not facing up to your responsibilities by not giving your current address.