HMRC fines/interest if they disagree with your accounts

[northernladuk]

Why not think about it a different way. If you shouldn't have had it you can't lose it. You've just enjoyed a temporary loan which, when paid back, means you will just be back to the right position. Happy days!!

Load of crap that isn't it? Oh well...

[Old Greg]

Why not think about it a different way. If you shouldn't have had it you can't lose it. You've just enjoyed a temporary loan which, when paid back, means you will just be back to the right position. Happy days!!

Load of crap that isn't it? Oh well...

But that's the wrong answer because he has to pay tax that he doesn't want to pay.

I think this needs a new thread.

[TheCyclingProgrammer]

I know you're asking in more general terms, but seeing as you're talking about expense claims, i.e. your out of pocket business expenses that YourCo reimburses to you, then this wouldn't be something that would come up in an enquiry into YourCo's corporation tax return and accounts IMO.

It would either come up in a personal tax enquiry (if you've been claiming expenses that aren't tax deductible) or an employer records check (if YourCo has been paying expenses and not reporting them on your P11D or treating them as earnings and paying the right levels of tax via PAYE and employer NIC, if any).

[psychocandy]

...

Cant live your life in constant fear of big bad HMRC Old Greg....

I've taken advice on this and a potential investigation into expenses is NOT going to invoke an IR35 enquiry is the opinion.

[psychocandy]

I know you're asking in more general terms, but seeing as you're talking about expense claims, i.e. your out of pocket business expenses that YourCo reimburses to you, then this wouldn't be something that would come up in an enquiry into YourCo's corporation tax return and accounts IMO.

It would either come up in a personal tax enquiry (if you've been claiming expenses that aren't tax deductible) or an employer records check (if YourCo has been paying expenses and not reporting them on your P11D or treating them as earnings and paying the right levels of tax via PAYE and employer NIC, if any).

This is true. You can pay what you like in expenses it just depends on what is allowable and what is a BIK. So yes I see what you mean.

[northernladuk]

Cant live your life in constant fear of big bad HMRC Old Greg....

I've taken advice on this and a potential investigation into expenses is NOT going to invoke an IR35 enquiry is the opinion.

Aren't you going to ignore that advice?

[psychocandy]

But that's the wrong answer because he has to pay tax that he doesn't want to pay.

I think this needs a new thread.

I see no-one has yet given an opinion on what they'd do if they were in the same situation. Come on fellas, cock on the block and be honest....

[Old Greg]

Cant live your life in constant fear of big bad HMRC Old Greg....

And yet here we are again.

[Old Greg]

I see no-one has yet given an opinion on what they'd do if they were in the same situation. Come on fellas, cock on the block and be honest....

I wouldn't find myself in the same situation.

[psychocandy]

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.

Umm I dont think that is going to happen. They are hardly going to go to my accountant and ask them, are they? I assume some sort of client privelege exists there for a start....

Following advice though, I may well pay it back. Its slightly less that I first thought to be honest and I really can't be arsed to have the argument with HMRC if it comes to that. If it'd been a massive amount I might have risked but its looking like a couple of days billing now so not worth it possibly.

Bit of a lesson learned though to watch out for things like this in future. Still think I'm right though and the legislation is crap.