How far back?

How far back?

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I have been approached by a company director who bought shares in a company in 2009 with an initial sum paid and the balance of £80K funded by a loan to be paid off by dividends earned in subsequent years. He is a higher rate taxpayer but has not filed any returns and there will be tax due. I haven't got all the information to hand yet,  but am wondering how many years I need to submit? Any advice much appreciated.

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By Euan MacLennan
30th Apr 2015 10:45

Yes, but ...

He will be liable to pay the additional 25% of the (net) dividends, but he will probably be entitled to claim a deduction for the interest paid on the loan used to fund his investment in the shares.

As to how far back, you can file the 2015 and 2014 tax returns online and the 2013 and 2012 tax returns on paper.  Although 4 years, is the limit, HMRC have the right to raise assessments foe earlier years, so you will need to disclose the figures for the previous years in a letter.

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Replying to ketteringUK:
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By winstonb
30th Apr 2015 16:34

Thank you Euan, most helpful. I had already enquired as to whether it is a close company but hadn't realised the filing intricacies

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