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?
- Limited company buying a car 136 4
- Goodwill omitted from first years accounts 254 15
- Buying Microsoft's Surface Pro 3 456 10
- Straightforward email correspondence or PDF letter attached to blank email? 543 6
- Course costs for retraining as a barrister 166 7
- Travel and Subsistence expenses while abroad 286 4
- How to post Sales figures in Sage50 Accounts (we use separate Sales ledger) 106 2
- ACCA practice certificates 492 5
- Limited company buying director's car 286 10
- Question on HMRC past taxes (+penalties) on non-resident 72 1
- Is it possible to change a client's trading address for Vat purposes online 88 1
- WC's and capital allowances 172 3
- Entrepeneurs relief 300 13
- Dress code 1,545 36
- Which company is best for online new company formation? 475 13
- CTA and Tolley's tax handbooks 256 6
- HMRC Seminar on Penalties - Did you last the course? 377 4
- CIC Tax - what is trading? 472 23
- What is the status of "Whistleblowing" these days - do you get rewarded? 183 4
- Loan Repayment on Invoice 105 3
- CTA study material 767
- Anyone have clients that use Pay4Later to offer customers credit? 477
- Raiders of the Lost Tax File 396
- Employment related securities question 308
- AIM Stocks and IHT 279
- Tax Relief for overseas employees 257
- Expat pension contributions? 255
- Trust for Employee 235
- Service Charge Accountant Career Options 174
- IPP (International Pension Plan) income 147