What are the chances - what shall I say?
Client has not submitted tax returns for years paying on estimated demands only. Earnt about £45K each year for past 4 years. I did accounts for one year only and submitted the 2011 return.
Problem is that he has not worked since April 2011 and will not be working again as he has cancer and he wont live long.
He wants to bring tax up to date I think not for any 'moral' reasons but he has an insurance policy that will only pay out on his death if his tax is up to date. Catch 22 = in overdraft therefore cant pay the £10K or so tax bill but until he pays the policy wont pay on death. No bank will lend him the money obviously.
Rang HMRC and they said to write a letter telling above and promised a reply turnround in 3 weeks.
Question... do you think HMRC will ask for the past returns to be completed?
And will they want the money ?
Will the money have to come from his estate (which is now only 1/2 of his house)?
I've not said anything to him about paying the tax as yet - but will HMRC want to put a charge on his house/get wife to sell etc etc?
Client has only received tax bill for the 2011 year.
Any suggestions as to what I should put in the letter?
- are receipts needed? 265 9
- How to? 101 1
- Cheque alternative - letter to HMRC re undeclared income 115 1
- Company overdue but wants to be struck off 564 19
- New accountant 325 6
- Loss Relief 88 1
- Tax case reference request 168 2
- Working out a daily rate 244 6
- Santander Scrip Dividend Scheme 157 2
- Amending prior year accounts for the first time? 1,396 25
- Unusual Self Employment Expense Claims? 481 6
- Sage Instant cash based flat rate 104 2
- Loan notes payment of principal and interest 97 2
- HMRC VAT misstatement disclosure 209 2
- How to account fot Cross-border vat. 219 5
- Paint Manufacturer Flat Rate Scheme 470 27
- Sage 50 203 2
- sole trader - operating under cis 242 7
- Limited Company - Personal Bank Account 2,985 65
- A change from the old Q v NQ debate 804 28
- Skandia using wrong address 1,584
- Nil Rate Band Trust - index linked debt by way of charge over property 880
- International interest certificate 491
- NOVA 344
- Can Limited Company Buy Share of Rental Property? 267
- Have we escaped Gift with Reservation of Benfit & Pre-owned asset charges? - Gift after benefit 252
- Management expenses for investment company 239
- Bonus Bonds 234
- Help with tax codes on Sage 183
- Capital reduction 169