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Fines and penalties-will HMRC deal?

A partnership under investigation has both a determined VAT liability and a soon to be determined, income tax liability.
The 'Revenue' part of HMRC have advised that they cannot consider (and therefore negotiate a settlement on) both together and that the client would have to 'negotiate' a settlement with both the VAT people and the 'tax' people.
The VAT liabilty on it's own would force both partners into bankruptcy- with HMRC getting next to nothing- unless it could be reduced by negotiation.
Has anyone managed to get a VAT liabilty reduced?

Gerard Somers

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28th Jun 2006 09:45

Not hopeful
In a similar situation with a client approx 7 years ago. Revenue said they would be pragmatic and negotiate payment terms. Customs overuled them and client was made bankrupt.

Which made no sense as the client had no assets and as a consequence the whole debt was written off when the client had offered payment in full over a long period!

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28th Jun 2006 10:46

that's what I thought
Thanks for that confirmation-this situation is further complicated as one partner has some assets, the other, none.

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