All sorts of trouble .... (Tax & VAT)

[helpplease]

Ouch, fair enough. You have definately got Free Agenct set up to to automatically receive the bank data from Cater Allen? It may be a case that the bank statements themselves show something different if the transactions were being added manually. Has your wife trashed all the HMRC letters? As others have said, they would certainly have been chasing you for it, and after this amount of time I'd have expected them to take more direct action.

I'm guessing that perhaps they have written to my old UK address ?

That said, the letter regarding the SA was sent to my address out here, so they've tracked me down.

But who knows what letters have got where and when ... as I say i found out about this because i found a letter that was been hidden from me

[DS23]

On challenging this it seems we just randomly sent HMRC "some money" they asked for .... sadly the letter asking for this has disappeared

60k might include paying off owed VAT then?

[jmo21]

Ouch, fair enough. You have definately got Free Agenct set up to to automatically receive the bank data from Cater Allen? It may be a case that the bank statements themselves show something different if the transactions were being added manually. Has your wife trashed all the HMRC letters? As others have said, they would certainly have been chasing you for it, and after this amount of time I'd have expected them to take more direct action.

What a bizarre situation.

What I don't understand is how your wife "let it all get on top of her" if your accountant was telling her the VAT figures to pay. If she was having to do the calculations, maybe it gets a bit difficult, but even then, it shouldn't have been a big deal to just say "right, I can't do this, take over".

[meridian]

60k might include paying off owed VAT then?

If he's very lucky it might include VAT, CT, and a lot of penalties. Once the net position is confirmed, if there is any additional tax owing then there may be an opportunity to reduce overall penalties and apply some of this payment elsewhere.

[DaveB]

If he's very lucky it might include VAT, CT, and a lot of penalties. Once the net position is confirmed, if there is any additional tax owing then there may be an opportunity to reduce overall penalties and apply some of this payment elsewhere.

Some Fag Packet calculations look like it may well be the VAT plus penalties that has been paid. The bank statements should show which HMRC account the £60k went to and that will tell you what it was paying for.

Sort....... Acct.No.....Name
08 32 00 11963155 HMRC = VAT Account.

08 32 10 12001039 HMRC Cumbernauld = Corp Tax

08 32 10 12001020 HMRC Shipley = Corp Tax

[tractor]

On challenging this it seems we just randomly sent HMRC "some money" they asked for .... sadly the letter asking for this has disappeared

It is going to cost you but you can ask for copies of correspondence.

[meridian]

The way I see it, OP needs to:
1. As others have said, engage a good accountant to outline quarter by quarter and year by year the amount of tax calculated as owing;

2. Determine what amounts have actually been paid, regardless of whether they are VAT, CT, or penalties.

3. Depending on the difference and the amount of penalties already included in payments, engage a good tax specialist (have a full and frank discussion with your accountant regarding this, and you may have to engage a separate tax lawyer) to negotiate with HMRC on your behalf for a full and final settlement that is as beneficial for you as it can be.

[helpplease]

So a small update ....

Seems the 60k was split across:

VAT
18601.23

CT
615.72
155.95
19409.26
14424.97

PAYE
1737.37
258.34


55202.84 in total, they cant even figure out what the other 5k went on ....

Having updated free agent it looks like still 30k owed

[tractor]

...

So a small update ....

Seems the 60k was split across:

VAT
18601.23

CT
615.72
155.95
19409.26
14424.97

PAYE
1737.37
258.34


55202.84 in total, they cant even figure out what the other 5k went on ....

Having updated free agent it looks like still 30k owed

But you are getting there Keep at it. Oh and before I forget, chances are it wasn't just the debtor accounts that were not managed properly. You will need to check all the allowable expenses were put through in each period which will potentially reduce the tax owed. I don't know how far back that can be treated but worth looking at .

[meridian]

One other thing I didn't see in the thread is protecting your current contract, in case the tax situation in the company goes pear-shaped you will want to protect that revenue stream. Perhaps some of the brolly people here can provide advice on whether it is preferable (or even possible?) to move the contract out of the company and to a brolly asap?