Hiding from HMRC and not paying tax - What is your advice?
I work in management accounts, so I could only answer this with a broad overview.
Someone recently asked me for my advice. Here is his situation:
Ran his own business as a sole trader for many years...didn't ever pay any VAT (and should have done) and didn't may much income tax. The HMRC caught up with him and sent him a huge bill which he initially paid on a quarterly basis, then stopped paying, sold his house and all other assets and lived on the cash for 2 years. He is now working as a sole trader again (different company name), putting everything through his partners bank, and not paying any income tax (doesn't turn over enough for VAT). He has basically 'disappeared' on paper and is hiding from HMRC.
He is now 8 years on from HMRC first finding out he owed them money. He thinks because it's over 6 years now that HMRC can no longer chase him for the initial money owed for VAT and income tax.
My advice to him was go see a qualified tax advisor, seek legal advice and start paying income tax now!!!
I'm just curious as to where he does go from here? I thought that there were no statute of limitation on tax owed, so there is no such thing as a '6 year rule? Am I right?
- Excel Instances 58 1
- Just for fun. 841 28
- Does the AR01 reflect the actual money invested in a company 89 6
- How to pay national insurance 538 17
- P11DX: change of requirement by HMRC 1,731 13
- Spam blocking 475 28
- Has auto-enrolment tipped the scales? 169 2
- Are solicitors worth the money? 1,338 13
- Can we learn from the financial services industry? 210 8
- A little silliness 276 3
- Is interest still due? 62 1
- AccountingWeb is unworkable 339 2
- How long to process paper 64-8 (SA)? 139 2
- Ex-gratia payments 283 6
- Splitting PAYE tax code between two jobs both with variable hours 126 4
- Director needs to withdraw 45k lump sum from company 358 6
- HMRC & daft penalty 622 6
- TOMS - the other side of the fence 138 2
- &^$%ing Mollom? 242 2
- Employment status 282 4
- Theatre Tax Relief 492
- Has anyone been affected by the RBS payment breakdown? 383
- Windows 10 on-going support ... 374
- Straight line write off of Purchase Goodwill ??? 348
- Perkbox 315
- Self Assessment - What to enter on the return 310
- Compensation - Taxable or not then CGT or IT 274
- FRS 102 compliant illustrative accounts for an insurance company 271
- Document Management Systems 253
- WIP Software 240