Knowing how difficult it is to persuade the inland revenue that anything paid to a wife who carries out no activities for a business is an allowable deduction this seems unlikely. As a minimum there would need to be business books showing the actual salary or drawings and firm evidence that this was paid regularly. Simply redrafting the balance sheets dividing everything equally could leave him in debt to his "partner." The only virtue would be she would be unlikely to divorce him until she'd had her money back!
The tax office can arrange to refund the employee directly and issue an amended form P45 to the employee. Meanwhile tax on week 1 basis.
Principal private residence
If he was married he could argue that, after a reason (to be specified) his wife said she was going to divorce him and threw him out, but they were reconciled after a less than a month. We all know how volatile things can be in the heat of the moment.
Credit collection agenciess
I agree 100% Peter, but would you pay them money you did not owe just to get them off your back?
Peter has it in a nutshell. Yes there will be interest, and penalties, but the maximum penalty can only equal the interest. This will be partly mitigated, just by pointing this out to them. The penalty is further reduced by a number of other factors, co-operation etc. Once you have admitted the error,it can only be treated as error or mistake not fraud..
Two companies one VAT registered
I believe that HMRC would be unlikely to see these as separate companies. For their rules it is the entity that runs the companies that would link them irrespective of the supplies they both provide.
This may not apply in the case in the case of two totally different businesses, for example, a husband & wife partnership operating a VAT registered cafe, where the husband also operated as a sole trader as a painter & decorator and was not VAT registered.
I too have had a negative experience of this firm, but nothing to do with taxation, Scottish Power made an erroneous transfer of my energy account. As I had signed no contract with Scottish Power and was using a different energy supplier I referred my case to the energy ombudsman to have the debt discharged. They seem to have a total lack of business acumen, threatening to blacklist me before a decision had been reached.
One of my early clients owned a garage, but the previous accountant had claimed IBA on the buildings and the inland revenue had accepted this without question. I immediately stopped claiming IBA, and had to tell my client all that had been claimed already would be clawed back with a balancing charge. Fortunately the profit on the sale of the garage was so high it did not matter too much.
Capital and other allowances are only intended to write an asset down to it's final sale price. To do more than this, is merely asking for trouble.
I agree, unless the articles of association state otherwise, it is not a public company and various other factors.
The only reason I mentioned it was that he states he specialised on audit work before qualifying himself.
When I worked for a Chartered Accountants accounts were often initially prepared by "means test" method or
from "shoe box" records, which together with an acquired line of questioning for incomplete records enabled us
to finalise accounts.
Unqualified persons filling in vat returns
An unlimited business can file it's own accounts, tax computations and all statutory returns. The tax & vat office may initially want to satisfy themselves as to the accuracy of the records kept and the competence of the person carrying out the work, prior to acceptance.
Only limited companies or limited partnerships need an audit which means their accounts must be prepared by a Chartered or Certified accountant. This is because the company's directors or owners cannot be made bankrupt for the failure of the company. Even so, much of the audit work will be carried out by the accountants staff most of whom will be unqualified.