HMRC fines/interest if they disagree with your accounts

[b0redom]

What OG said. You seem to be asking, "I'm trying to do something borderline dodgy. What will happen if I get caught."

[Old Greg]

What OG said. You seem to be asking, "I'm trying to do something borderline dodgy. What will happen if I get caught."

HMRC will be interested whether an error (in their eyes) is made in good faith or not (in their eyes).

[Pondlife]

HMRC will be interested whether an error (in their eyes) is made in good faith or not (in their eyes).

The conclusion reached may have been different had the OP not ignored his accountant's advice and then started half a dozen threads on internet forums.

[Old Greg]

The conclusion reached may have been different had the OP not ignored his accountant's advice and then started half a dozen threads on internet forums.

True, having said that I can think of two occasions when I ignored my accountant's advice, but I still acted in good faith (and I believe within the "rules").

[psychocandy]

Yes the fact of the matter is that I have been claiming expenses and had planned to do so for the next few months.

IF I'd known 5 months ago that I definitely had to stop claiming there and then, it would have been cut and dried. I could have then stopped, decided whether to stay or get a different contract elsewhere.

Only now, when I read about it, queried with my accountant, did they say, oh yeh now you come to mention it, its complicated but you probably should pay it back.

BUT, it'll cost me about £2000 to do this. Not helped by the fact that last tear these additional profits could have been paid out in dividends without the extra 7.5%.

So yes of course I want to be sure, and yes I am hoping there is an argument to do what I've done.

[psychocandy]

The conclusion reached may have been different had the OP not ignored his accountant's advice and then started half a dozen threads on internet forums.

I dont think I'm ignoring my accountants advice. They have stated it is unclear but they think it might be they way they say.

[psychocandy]

What OG said. You seem to be asking, "I'm trying to do something borderline dodgy. What will happen if I get caught."

Not dodgy at all IMHO. There are two opinions on this.

Taking one opinion will cost me £2000. Taking the other will not cost me £2000 but there is the risk that HMRC will not agree with me (so it might cost me more than £2000).

[WordIsBond]

Taking one opinion will cost me £2000. Taking the other will not cost me £2000 but there is the risk that HMRC will not agree with me (so it might cost me more than £2000).

And if the latter comes true, they will ask what advice you received. And your accountant is certainly NOT going to get into trouble with HMRC. So when they are asked if they advised you on this, what are they going to say?

Maybe they don't have to answer that question. But if they do, they are going to say they advised you that you probably should pay it back. And having received that advice, your penalty is not going to be big enough to reduce the budgetary deficit of the UK, but it will make a difference to you. It's likely to be a lot more than 10% if they know you got advice and ignored it.

Who knows what other ramifications there are? Who knows what else they start investigating once they decide you are a shady character? Is your IR35 position ironclad or suspect? Arguable, based on some of your other posts. Maybe once they start on this, they go after IR35, too. Unless you have NOTHING that could be problematic, you don't want ANYTHING that makes it look like you aren't being completely straightforward.

I'd pay it back. Yesterday.

[Old Greg]

Who knows what other ramifications there are? Who knows what else they start investigating once they decide you are a shady character? Is your IR35 position ironclad or suspect? Arguable, based on some of your other posts. Maybe once they start on this, they go after IR35, too. Unless you have NOTHING that could be problematic, you don't want ANYTHING that makes it look like you aren't being completely straightforward.

I'd pay it back. Yesterday.

...

It is what it is.

[Pondlife]

Only now, when I read about it, queried with my accountant, did they say, oh yeh now you come to mention it, its complicated but you probably should pay it back.

I dont think I'm ignoring my accountants advice. They have stated it is unclear but they think it might be they way they say.

Come on PC.

Here's a spare pair in case you lose yours.
http://glacialblog.com/userfiles/43/...olorglass1.jpg