Company owes unpaid VAT & PAYE going back many years. Reluctance on part of owner to seek "expert" help in the form of Business Recovery experts which is making life difficult. The reason for the unpaid VAT & PAYE is due to a former staff member missappropriating funds for years. This has now came to light. HMRC have still not quite caught up with the full amount owing but they eventually will. When they do, what options are there for negotiation of this large debt. Obviously year end accounts can now be revised (they had been altered to conceal the thefts) and huge losses will mean there is a lot of tax to come back - would they be open to doing a deal based on this? Would they be keen to write off any of it or is this a no go area.
Just seeking some general guidelines.
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VAT
Just to comment on some of the issues you have raised. HMRC still likes to be 2 different departments when it suits them. You therefore need to make a disclosure to cover all 3 aspects, corporation tax, VAT & PAYE. Ideally that means a HMRC officer from the three tax departments to attend any meetings.
That will put you in a better position to negotiate time to pay on a global basis. As a general rule you are likely to get longer time to pay the penalties rather than the tax
Malcolm McFarlin
I assume there will be a Corporation Tax rebate if profits have been falsely inflated or is that similarly owed. It is very unlikley that HMRC will write off any of the debt. I assume your client is suing the felon for restitution and pursuing anyone else who has benefited from the crime up to and including bankruptcy
2 time to pay numbers are as follows but I suggest it is in your client's interest to come clean immediately to avoid penalties as HMRC will not do any deals without full knowledge of the amount outstandinq. This will require statutory information being up to date
0845 302 1435 corporation tax
0845 302 1435 vat
Paye is normally negotiated with the debt collection office
As a matter of interest how much is owed?
Client is a sole trader so no CT involved. Amount outstanding is six figures. Unfortunately no hope of reclaiming any of the stolen funds.
Many thanks for your replies.