Hiding from HMRC and not paying tax - What is your advice?

Hello all,

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?

 

 

 

 

Comments
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you are

memyself-eye |
memyself-eye's picture

Yes he said his partner is

accountslady |

He was under the impression

accountslady |

walk away now

Jekyll and Hyde |

Custodial sentence

thisistibi |
thisistibi's picture

I didn't give him any advice

accountslady |

.

Monsoon |
Monsoon's picture

he may have nowt...

memyself-eye |
memyself-eye's picture

@memyself-eye

ShirleyM |
ShirleyM's picture

No, his partner in crime (I

accountslady |

This is to a certain extent why CIS was introduced

frustratedwithhmrc |
frustratedwithhmrc's picture

If he "hid" as you say and

Anthony123 |

I bumped into this guy again

accountslady |

Coming clean

Helen Crowley |

Yes, it does seem like he

accountslady |

I think your 'friend' may have no idea what is about to hit him.

frustratedwithhmrc |
frustratedwithhmrc's picture

If he does own up and HMRC

accountslady |

Lets hope so

Jekyll and Hyde |

Is a custodial sentence likely? Probably not, but it depends...

frustratedwithhmrc |
frustratedwithhmrc's picture

Surely his best option is to

accountslady |

Ps.....he is not my 'friend';

accountslady |

You know where you went wrong don't you...

frustratedwithhmrc |
frustratedwithhmrc's picture