Urgent advice: HMRC liabilities

[ChimpMaster]

Shocking stuff.

Out of interest, why is it that that VAT man is the harshest of them all? Is it quite simply because the VAT process and calculation is the most glaringly obvious?

[SueEllen]

VAT money is never the company's.

You collect the VAT for them and pass it on.

In addition the old custom and excise people had a reputation for seeing through everything as lots of money is lost through VAT fraud.

The fact that they produce free booklets, provide free training to small businesses and will even help you on the phone means if you are lazy, willfully ignorant or a scammer they come down on you like a tonne of bricks.

[Pondlife]

Shocking stuff.

Out of interest, why is it that that VAT man is the harshest of them all? Is it quite simply because the VAT process and calculation is the most glaringly obvious?

The VAT man is actually the more reasonable of folks IF you ask them for assistance. If you decide to mess around with their dues they are, as you say, particularly harsh.

My own thought is that this is due to them previously being Customs and Excise who were more used to dealing with fraudsters and smugglers and who had the ability to knock your front door in if they thought you owed them something.


Edit: Basically WSES.

[SueEllen]

I actually went on a face-to-face VAT course years ago.

The inspector told us some of the tricks small business people did to not pay VAT. They do not take kindly to people who cannot separate themselves from their business so don't pay VAT or the right amount of VAT.

The trick is to correct small mistakes on your next return. With larger mistakes immediately own up but expect them to watch you for the next year.

[MrMarkyMark]

My step dad always advised, they should be top of the list to pay.

I have to admit a few years ago I was late with my VAT, by 3 months.
The cheque, unbeknown to me, had gone missing in the Indian post system

I rang the VAT office when I got back, no issue.
She actually said to me, "Well you have always paid on time before".
I didn't even get a chasing letter.

[Alan @ BroomeAffinity]

In my experience, HMRC - whether VAT, CT or PAYE are fairly flexible when it comes to paying them. Mostly they will accept any payment plan you offer and it's mostly centralised so you can often roll up all your debt into one plan. Obv not personal AND company debt but if you owe vat and ct, say they can roll that up. It's when you don't stick to the plan that they can get nasty. But even then they will talk to you.

The important thing is not to ignore them. That really p!sses them off.

[TheFaQQer]

My step dad always advised, they should be top of the list to pay.

I have to admit a few years ago I was late with my VAT, by 3 months.
The cheque, unbeknown to me, had gone missing in the Indian post system

I rang the VAT office when I got back, no issue.
She actually said to me, "Well you have always paid on time before".
I didn't even get a chasing letter.

They can be nice if you're up front and honest about it - someone I worked with accidentally hit the wrong button (I know not how) and submitted a zero VAT return for the quarter. He rang them up immediately, and they said not to worry - just add it into the next quarter because that's easier than trying to fix it now.

However, not having the money to pay because you've stolen it, doesn't go down well...

[Cirrus]

My mate Colin is terribly laid back. He's a smashing bloke but inclined to feel there is a priority on sending three kids to an expensive private school, driving a BMW and having an £80,000 kitchen extension etc.

I went to Stockholm with him for a weekend and he was buying lunch off his company credit card. As far as I am aware he has always just spent directly out of his company bank account and then taken VAT, CT etc as bills that arrive like gas and electricity. He always seems to be saying "OK - thanks for the £30k demand. That's quite a big amount so can I pay it over x months?"

As far as I can tell, the Revenue accommodate him. Maybe they add a bit of interest but I've never ever seen him in the slightest bit stressed by this modus operandi.

So my advice is don't fret.

[northernladuk]

My mate Colin is terribly laid back. He's a smashing bloke but inclined to feel there is a priority on sending three kids to an expensive private school, driving a BMW and having an £80,000 kitchen extension etc.

I went to Stockholm with him for a weekend and he was buying lunch off his company credit card. As far as I am aware he has always just spent directly out of his company bank account and then taken VAT, CT etc as bills that arrive like gas and electricity. He always seems to be saying "OK - thanks for the £30k demand. That's quite a big amount so can I pay it over x months?"

As far as I can tell, the Revenue accommodate him. Maybe they add a bit of interest but I've never ever seen him in the slightest bit stressed by this modus operandi.

So my advice is don't fret.

So you have a mate that 'might' be in a situation but you are not sure and you assume they are accommodating him but you are not sure so based on that you say don't fret? Great advice. :

[MrMarkyMark]

FTFY

My mate Colin is terribly laid back.
As far as I can tell, he accommodates the revenue, however, the lube helps.
So my advice is don't fret.