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.
- Taxfiler - SA100 - More efficient? 625 5
- See you all on the other side 681 6
- 12Pay 445 2
- dividends 599 2
- R&D 312 1
- Quarterly Reporting - The Logistics 1,172 17
- Auto enrolment contribution rates 436 3
- How long are you waiting for appeal reply 398 4
- Borrowing money to loan to company 369 1
- Mother as Guarantor for Son's mortgage 539 5
- Seeking a tax case 637 9
- When do we qualify for state pension? 502 4
- Companies house strike off 535 3
- Tax treatment of alterations to property 417 2
- Moving to the cloud 737 9
- Iris open space/doc exchange for SATRs 215 2
- How much to charge for payroll? 894 16
- Unincorporated charity transfer to CIO 207 4
- BTC vs Digita 1,090 29
- Has anyone tried calling HMRC to get tax on dividends put in code? 492 4
- HMRC Joint Filing 562
- Capital Contribution towards a company car 420
- Capital Reduction & Impact on EIS Shares 373
- IRIS and FRS 102 354
- Capitalising Finance Lease 323
- USA help 317
- National Minimum Wage issue on Directors joining a Workplace Pension 296
- Dormant company accounts under FRS 102 289
- Marginal rates of tax 281
- Class 2 NI 268