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.
- Where can I get the information for this 361 7
- BrightPay 360 9
- If a company made large profits in 2009, is there a time limit for later losses to be set off against those profits to recover tax? 196 3
- CGT &LLP 69 2
- Am I at risk as an appointed Agent? 538 4
- Setting up an offshore company 88 1
- SDLT on Land Transfer to Connected Company and Averaging Relief 183 16
- Secure document exchange 117 3
- Question for FreeAgent users 158 4
- Any way of declaring a variable dividend? 390 7
- break even point 162 5
- Charity recouping VAT via a separate company 114 3
- Fax to email providers 326 11
- Payroll software 236 11
- Ghost messages from HMRC...... 131 1
- Amending supplier account code in Sage 50 141 4
- How to issue shares to investors 86 1
- Expense management software 629 12
- New Practice - Accounting Software 3,106 84
- Tax code 147 1