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?
- If you've had any issues posting: Please read this 587 11
- The stupidity continues 818 49
- transactions after account have been closed 221 5
- What is IRIS World like? 377 9
- Land Rover Discovery 3.0 SDV6 255 Comm Auto 2 seat 350 8
- Can I claim Vat on solicitors invoices? 234 6
- Limited company director - other earnings in the tax year 268 4
- CIMA at the age of 35?? 541 10
- Offsetting CT losses against another company 243 6
- Calculating capital gains tax for non-residents UK residential property 143 1
- CIS. Why is it so complicated? 2,343 25
- New Employers Helpline 213 4
- Software recommendations 285 1
- Share transfer question 394 17
- qualifying for 1/9th tax credit on foreign dividend 193 2
- HMRC & daft penalty 2,473 19
- Overlap relief 764 19
- Pension contributions 387 10
- Do you have to declare business expenditure on a personal credit card on your P11D? 521 11
- Do you use sign up lists on your website 225 1
- Has anyone been affected by the RBS payment breakdown? 440
- Straight line write off of Purchase Goodwill ??? 438
- WIP Software 302
- FRS 102 compliant illustrative accounts for an insurance company 291
- No payroll scheme in place 236
- CGT, PPR and transfer of equity to spouse. 234
- Do subcontractors on work for residential (student accomodation) construction 212
- Is there anything wrong with this? 206
- Small Part Disposal of Property 193
- Uncommercial property business 183