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!
- AIA/Capital Allowances 199 6
- Time values in Excel 121 3
- RTI and Advances to Employees 346 8
- No more tax returns... 1,269 12
- bookkeeping system 534 8
- Spanish Assets taxation - UK Residence 167 3
- Selling to USA, Delivery to Poland, VAT? 83 1
- HELP CT Return filed but doesnt match up HMRC's AP 193 6
- Stand alone practice management software 1,679 23
- International VAT 105 2
- CTA 199 2
- Office 365 vs. Google apps 619 9
- Anyone else experiencing issues with sage 50 payroll 714 21
- Insurance payout 123 1
- Non-UK resident - where to pay income tax? 526 11
- RTI / P11d 166 2
- Are any of you members of The Institute of Financial Accountants - Accountnats certificate 1,101 21
- Guaranteed rents - which is the turnover? 285 9
- Windows 7 to 8 should I go Excel or Office 365 378 3
- Company Share Buy Back 290 7