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HMRC Debt management why so slow?

HMRC Debt management why so slow?

Clients of mine, (pub tenants of course), have been the subject of a HMRC investigation resulting in unpaid tax plus penalties of more than a quarter of a million pounds - A sum they cannot possibly pay.
Thay have no assets and will be bankrupted.
However, following the first letter from HMRC's debt management unit on 21 December 2007 nothing has happened.
Nothing after NINE MONTHS
The clients contunue to operate their pub as though nothing has changed - they pay neither VAT, payroll taxes or income tax though.
A commercial business owed this sum would have acted months ago, anyone know why HMRC do not appear interested?
Gerard Somers

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06th Oct 2008 15:08

They haven't forgotten!
Its likely that the investigators have forgotten to remove the inhibit they placed on the company to suspend enforcement of the debt while their investigation was in progress. Unfortunately the problem will resurface sooner or later. If your client continues to trade without submitting tax and VAT returns then they leave themselves open to criminal prosecution. It may be difficult for your client to argue lack of intent to defraud the revenue second time around. They ought to instruct the services of an insolvency practitioner if they have no hope of paying the debt.

Regards

Malcolm Mcfarlin
www.mandrtaxadvisers.com

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