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?
- Taxfiler - SA100 - More efficient? 621 5
- See you all on the other side 678 6
- 12Pay 443 2
- dividends 597 2
- R&D 311 1
- Quarterly Reporting - The Logistics 1,171 17
- Auto enrolment contribution rates 436 3
- How long are you waiting for appeal reply 395 4
- Borrowing money to loan to company 368 1
- Mother as Guarantor for Son's mortgage 538 5
- Seeking a tax case 637 9
- When do we qualify for state pension? 500 4
- Companies house strike off 533 3
- Tax treatment of alterations to property 416 2
- Moving to the cloud 735 9
- Iris open space/doc exchange for SATRs 214 2
- How much to charge for payroll? 893 16
- Unincorporated charity transfer to CIO 206 4
- BTC vs Digita 1,088 29
- Has anyone tried calling HMRC to get tax on dividends put in code? 489 4
- HMRC Joint Filing 561
- Capital Contribution towards a company car 420
- Capital Reduction & Impact on EIS Shares 372
- IRIS and FRS 102 354
- Capitalising Finance Lease 323
- USA help 316
- National Minimum Wage issue on Directors joining a Workplace Pension 295
- Dormant company accounts under FRS 102 288
- Marginal rates of tax 280
- Class 2 NI 268