Surely spending VAT money is the worst? Strictly speaking thats not really your money to start with....
Although spending your CT money without regard is probably just as bad. Im assuming these people didnt have decent accountants telling them to leave it alone?
Just working it out. £1000 a day for 2 years is not far shy of £450K income. Even allowing for £25K a year business expenses, thats still 20% of £400K on CT = £80K.
Plus of course, there'd be the additional personal tax liability by going over the 40% threshold each year (plus the £100K thing). £200K pa income. £160K over 40% bracket so another 22.5%(?) on top = £36K per year. Plus the £100K thing (dont know the figures for this cos I'm not that lucky!)
So, £80K CT owed, £72K (+more) personal tax owed. Bet he had to sit down after getting that letter !!!!
Like someone said, if the person in question has blown the lot, then it aint easy for HMRC to get hold of £150K off someone.
Although spending your CT money without regard is probably just as bad. Im assuming these people didnt have decent accountants telling them to leave it alone?
Just working it out. £1000 a day for 2 years is not far shy of £450K income. Even allowing for £25K a year business expenses, thats still 20% of £400K on CT = £80K.
Plus of course, there'd be the additional personal tax liability by going over the 40% threshold each year (plus the £100K thing). £200K pa income. £160K over 40% bracket so another 22.5%(?) on top = £36K per year. Plus the £100K thing (dont know the figures for this cos I'm not that lucky!)
So, £80K CT owed, £72K (+more) personal tax owed. Bet he had to sit down after getting that letter !!!!
Like someone said, if the person in question has blown the lot, then it aint easy for HMRC to get hold of £150K off someone.
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