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.
- Small employers paying people when sick thanks alot! 2,750 25
- Value pricing 213 8
- Audit Required 87 2
- company secretarial software 138 2
- Tax repayment for 2013-14 123 3
- Elective DeductionsModel 59 1
- Papilio UK Equity Release Mortgages Ltd 186 1
- Rental Income 298 6
- Payroll 2012/13 100 1
- I have a pain 691 6
- Sale of assets - availability of AIA to the purchaser 77 1
- convert directors loan account to share capital 170 5
- Anyone else seen incorrect tax code notices - rather worring! 731 17
- Belated VAT Exception Application 120 3
- Cash flow 146 2
- New use of home - simplified method 239 4
- CGT and PPR and Lettings Relief? 266 5
- 2 year rule? Self employed. 391 13
- How long is filing an FPS meant to take ? 1,952 32
- Share restructure 335 12
- Residential Property Purchase Above £750K 730
- Using Sage with Sofa Categories 499
- Does anyone have an unwanted ICAEW wooden plaque? 343
- One man Company and closing payroll scheme as none paid 341
- Goods shipped inter EU and VAT Reporting 262
- VAT on Gaming Machines 210
- Sage 200 and Access Dimensions reviews 198
- Non-Resident Director - UK Tax Position? 183
- transferring simply accounting 2010 from xp to windows 7 175
- Director Loan account operation 146