VAT - Is there really any time being given to pay?
I have a client who registered for VAT (15 months late) in September 2009 and has yet to submit a single VAT return / payment along with being behind with his SA tax.
Understandably HMRC are now getting seriously annoyed and have sent bankruptcy letters thretening such action if immediate payment is not paid.
HMRC have made VAT best assessments (which are way too low) and obviously do not take account of the pre-registration liabilities!
The client simply cannot pay this, and is looking for some kind of arrangement.
The amounts involved are as follows;
Pre reg: £45k
Post reg (to March 2011) £27k
Projected quarterly liability £9k (average over year)
I have advised him that he needs to get together some cash to make a lump sum payment if he is going to have any chance of a payment deal for the balance but nowadays even this seems in doubt as HMRC currently seem to be taking a very tough stance over non-payment.
If a payment proposal is made where the taxpayer pays a lump sum of say £15k and £1.5k per week for the next 18 months to clear his existing and estimated ongoing liabilities - Do you think this could be accpetable?
If not, has anybody got any ideas on what may be an acceptable proposal.
We all know that this client has brought on this situation, but I am still professionaly obliged to try and help him!
- Self-assessment statistics 2,472 59
- Entrepreneur - want to submit accounts by myself 218 5
- Transmission of ISA 49 2
- Bench-marking software, any ideas? 184 2
- Next Move 715 20
- Separate companies same Director buy from each other 182 2
- Not renewing AAT 677 9
- CGT of shares gifted 383 6
- New dividend taxation 500 3
- Accountant won't release working papers 2,798 51
- Co purchase printed materials from EU - VAT 159 1
- Company car v company allowance 287 1
- Furnished Lettings - expenses normally bourne by tenant 437 9
- Company formation and bank account 437 9
- Owning overseas property 349 2
- MLR and benefitting from the disclosure 291 1
- Company Car for Owner Director number crunching - is there a ready reckoner? 281 3
- How did you recalculate your payroll fees 711 8
- Client tied in to accountant. Unfair contract? 735 9
- Importing Sage Data and Year End 284 2
- Self employed and HMRC Worldwide Subsistence Rates 667
- Acrobat Checkbox Help for New 64-8 409
- Property letting & CAs 399
- 2015 tax year end 396
- Interest paid - do new rules affect Tax Credits? 395
- FCA regulated company in a small group 347
- Self employed consultant working in Ireland 320
- Market Invoice (P2P invoice discounting) tax treatment 241
- DTA tie-breaker issue 211
- Tax on internet ad sharing income 208