Advice Required on non payment of taxes

[craig1]

Many thanks I shall give them a call.

In the interim is it worth me getting to grips with other payment vehicles etc. For example given how my financial affairs have been running to ensure tax etc are paid going forward should I look to an umbrella?

All being well I'll be able to come up with some form of agreement with HMRC but if not I can't put my family at risk by not having any cash at al.

Best Regards

HMRC will be mightily miffed if you divert revenue away from a company where they're a substantial creditor and move to an umbrella!

On your personal finances, I linked CCCS above, try them, they will help, they're a charity, not one of those "sell us your soul and we'll pretend to clear your debts" sharks. If you approach your personal creditors with a CCCS Debt Remedy Plan, especially the large creditors, then you'll go in with huge backing. If you're not willing to address your personal finances then I struggle to see how you'll recover the situation, especially if you get benched. This point is just as important as addressing your company debt!

[Greg@CapitalCity]

In the interim is it worth me getting to grips with other payment vehicles etc. For example given how my financial affairs have been running to ensure tax etc are paid going forward should I look to an umbrella?

I think that will all come out in the wash after a discussion with them. The advice you get from an insolvency practitioner will then determine what your next course of action is.

[Tristesse]

Hi Craig1,

Many thanks for your help. I have spoke with CCCS before and you're right they really did help.

On the personnel side of things I no longer have any debt (unfortunately rather stupidly this was one of the things I used the overpayments for.) The business also has no other credit except to the HMRC.

I've left a message with the IP company to get back to me, would you be able to advise on any rough charges etc? Appreciate it must be dependant on circumstance.

Best Regards

[cojak]

All being well I'll be able to come up with some form of agreement with HMRC but if not I can't put my family at risk by not having any cash at al.

Best Regards

I'm sorry but you must be told: you can go to jail - your family is already at risk

HMRC are not to be left at the end of the queue for these matters, they are aggressive when they think they've been diddled out of their money.

You must be much more proactive than leaving a message on one company's phone. It doesn't feel as if you're taking this terribly seriously, as does the above comment.

Start phoning around all recommendations, don't try to find a 'vehicle' first. You must show HMRC that you're trying hard to fix this. To be frank it doesn't look it at the moment.

[craig1]

I'm sorry but you must be told: you can go to jail - your family is already at risk

HMRC are not to be left at the end of the queue for these matters, they are aggressive when they think they've been diddled out of their money.

You must be much more proactive than leaving a message on one company's phone. It doesn't feel as if you're taking this terribly seriously, as does the above comment.

Start phoning around all recommendations, don't try to find a 'vehicle' first. You must show HMRC that you're trying hard to fix this. To be frank it doesn't look it at the moment.

HMRC should be as high a priority for a company as the mortgage payment is for an individual. No other missed payment can cause you anywhere near so much grief. If people can't do running tax calculations to ensure they've enough money in their company accounts to pay HMRC on demand then they should pay an accountant to do it for them.

[Project Monkey]

The law says (something along the lines of) - you must pay the tax man before you pay anyone else. Sounds like in your case you've been putting someone else first and not paying the tax man.

Yes, get professional advise, but (as you say) you've been overspending I suspect you have some assets you could sell and could make some cost savings. In other words, trade in your new Audi for an old Vectra, cancel your Sky subscription, abandon any hope of another exotic holiday for the foreseeable future and possibly sell your house. May sound harsh, but that's the way the law will look at it.

Sorry about the rant, but this sort of attitude to running a business drives me mad. Its really not difficult to undertstand - don't spend money that isn't yours!

BTW, are you talking Corp tax or personal income tax or both?

[ASB]

The law says (something along the lines of) - you must pay the tax man before you pay anyone else. Sounds like in your case you've been putting someone else first and not paying the tax man.

Not any more it doesn't. HMRC are "just" a regular creditor now. An effect of this though is that they are more aggressive rather than less. Previously they would hang around, secure in the knowledge that they were first in the queue for satisfaction in full before anybody else got a look in.

Of course the OPs actions have made things substantially worse. There could be mutterings of false accounting, evasion, fraud and potentially all manner of nasty things.