HMRC policy on debt
I would appreciate thoughts on how HMRC may approach the following?
new client walks in off the street. hasn't filed tax returns for 5 year.
he is not vet registered, although he should have been from 2006.
I estimate the VAT arrears are £300k, plus interest plus penalties.
he only has £75k of cash with no other assets.
his income tax position is reasnbaly up to date - he had been paying £5,000 lump sum every now and again which has helped.
We advised that we have an obligation to inform HMRC of the late vat registration and he accepts this.
he does want to do the correct thing. i think he has had some personal issues during the past few years, hence the position he now finds himself in.
he would like to pay what is owed but realistically this might not be possible.
his turnover is £300k pa and his trading profits are c£70k per annum. his business is arranging private tutoring (not tutoring personally).
any thoughts how you think HMRC will react when he comes clean.
- UK Accountancy Franchise 231 5
- Newly Started Practice 671 13
- Who is this White Bull you lot keep referring to? 560 15
- Sage Payroll 136 2
- Bookkeeping software for cafe and VAT 184 3
- PAYROLL - SAGE v Microsoft Payroll Manager 135 1
- Clients 723 15
- Simplified auto enrolment? 198 2
- Tax and children 153 1
- ACCA, ACPA, IFA, ICPA 566 8
- Does SMP and SPP go up if leave goes across 2 tax years? 391 16
- Directors obligation to notify 116 1
- Lets hear it for HMRC! 272 2
- Don't HMRC collect CT anymore? 175 1
- Starting new accounting business 335 6
- Leaving the flat rate scheme 158 4
- error on companies house accounts 765 18
- RTI penalties 150 1
- How do we get US withholding tax back? 324 5
- US Sales Tax 116 1
- QROP pension input amounts 501
- HMRC BENCHMARK EXPENSES 483
- write off loan or loan to equity swap or both 446
- EPS and CIS deductions 304
- Sole trade business in UK, but the owner works from EU 292
- Construction CIS LLP Company 285
- Stamp duty on house transfer between spouses 250
- SAGE winforecast 205
- LIVE: Budget aftermath webinar 188
- Overdrawn director account 177