Urgent advice: HMRC liabilities

[jmo21]

Advice?

understand your business properly going forward.

[northernladuk]

Advice?

understand basic taxation going forward.

FTFY

[SpontaneousOrder]

And don't spend other people's money. Your client gave you VAT to pass on to the tax man, and you spent it!

[SueEllen]

The reason everyone is giving you a hard time is because unless your personal reasons are very good the VAT man will give you a hard time.

I'm not sure why you thought you could get away with paying no taxes.

[northernladuk]

We've not started yet

[SueEllen]

We've not started yet

I was biting my tongue.

[NotAllThere]

And while HMRC will often use the "it wasn't your money in the first place" mantra - when you are putting money through a company, there is a grain of truth to it.

The money in the company doesn't belong to you, even if you are the sole shareholder and director. It belongs to the company. You can only receive funds via a loan (which is heavily restricted for directors), or disbursements after liabilities have been covered, which includes amounts to HMRC.

VAT money doesn't even belong to the company! You are the unpaid tax collector, is all.

[DelboyTrotter]

VAT money doesn't even belong to the company! You are the unpaid tax collector, is all.

Unless you're on the Flat Rate Scheme

[Contreras]

Unless you're on the Flat Rate Scheme

In which case:

Most of the VAT money doesn't even belong to the company! You are the unpaid tax collector, is all.

I hope you understand this.

[pr1]

In which case:


I hope you understand this.

I think his point was on the FRS you are a paid tax collector (effectively)