Debt bint is back

[thunderlizard]

I wouldn't be surprised. If you die while owning your ferrari then they'll make you pay inheritance tax on your ferrari. If you sell it they'll make you pay capital gains tax. If you don't sell it they'll invent some kind of deemed capital gains tax on the profit you're nominally making as it appreciates into a priceless classic ferrari. If you do any or all of the above you'll be paying road and fuel tax anyway.

[xoggoth]

No idea what bfg is on about either. If all legally due tax has already been paid there is no problem. Still, I wouldn't guarantee this will remain true in the future the way this country is going, somebody has to pay for the feckless of Britain and the third world.

[oraclesmith]

Bfg, what was your 'mate' doing to attract that much attention from the HMRC. Was he an IT contractor ?

[bfg]

He was an I.T. contractor. He attracted their attention by taking a lump of cash out of his company account and putting it into the building society.

Within two weeks he had a PAYE inspection, which led to other inspections. They then decided that he owed them extra tax, penalties and interest from over 6 years. They froze his building society account when he challenged this and put a legal charge on his house. It took over seven months just to get to the commisioners, where he won but they appealed. Then he won again, but they appealed. Then he finally won and got his monies released.

No apology, no costs, he is just glad he was insured to cover the costs of this.

He is no longer an I.T. contractor, he can't take the hassle and stress any more. The biggest thing that worries him is another run-in with the taxman, he is a permie shift manager now in a DIY store.

[Andyw]

New Labour rewarding success here again then !

[CaribbeanPirate]

HMRC do not care if the money is legitimate.
They do not care that you have paid all taxes due.
They do not care that you have worked hard for it.
They do not care that you are a fine, upstanding contributing member of society.
They do not care that it is your money, not theirs.

THEY JUST WANT TO TAKE IT FROM YOU. They will use all means fair or foul to get their hands on it. Unless insured you will find it very difficult to fight them as they will have frozen all your assets, including all that cash.

Even if you win they will have had the use of your money for years while you fight them.

It happened to a colleague, it took over 3 years to prove he didn't owe them £58,000, magically the exact same figure he had saved in a building society to buy a property in the med. He was notified to HMG under the money laundering regulations when he paid in £2000 to top it off just prior to going out later that year to buy. This information was passed to HMRC who swooped on him like the flock of stinking vultures they are. When that failed the government then had another try under the proceeds of crime act, that one only took a few weeks to sort out as all his finances were fully documented.

He never did get that place in the med, nearly got a nervous breakdown though.

I'm having flash backs!!!

I have seen the revenue boys at work on an interior design company (up market painter and decorators). The company barely survived that, but the stress caused the break-up of his marriage and the company was liquidated as a result. No idea what happened to him after that.

When I saw them coming for me, I had a chat with the accountants and he confirmed that once they get your name they continue until they’ve exhausted that source of funds. I liquidated everything and fled abroad.

I can honestly say that it is the best thing I’ve ever done.

[Andyw]

funny how the figure of 50 grand keeps floating around...

Everyone I know who is in that position is being screwed for 28-58 grand.

Great way to treat your citizens huh ! and the terrorists are ?

[AtW]

THEY JUST WANT TO TAKE IT FROM YOU.

First of all - if money are mine (all taxes paid) then they ain't getting them - there are laws in this country and I had opportunity first hand to see that they work, so leave this BS to yourself.

Secondly in all the brief moments that I had to communicate over the phone with IR people they seemed very helpful and generally nice.

So stop FUD - if you have big cash personal account with legit money then there is nothing to be afraid of - if they ask questions then just anwer them, heck, generally speaking annual tax returns is good enough paperwork.

In your example there is an obvious suspect transaction - in small owner-manager companies they would always look carefully to ensure that company money are not used for personal purposes: from what you say it sounds like your "mate" just put big chunk of company money to offset his own personal morgage account, naturally they would have viewed this as benefit in kind.

Anyhow, as far as I am concerned I'd rather keep big amount of legit cash in my personal bank account so that any crap in life that happens so often can at least be dealt with easily and if IR asks questions then I've got all the paperwork. Naturally I would not just take lumpsum from business account and put it into personal unless all due tax is paid etc.

If you don't have good money in your bank account you are already screwed, and with IR I will take my chances especially because the law is on my side.

[Andyw]

First of all - if money are mine (all taxes paid) then they ain't getting them - there are laws in this country and I had opportunity first hand to see that they work, so leave this BS to yourself.

Secondly in all the brief moments that I had to communicate over the phone with IR people they seemed very helpful and generally nice.

So stop FUD - if you have big cash personal account with legit money then there is nothing to be afraid of - if they ask questions then just anwer them, heck, generally speaking annual tax returns is good enough paperwork.

In your example there is an obvious suspect transaction - in small owner-manager companies they would always look carefully to ensure that company money are not used for personal purposes: from what you say it sounds like your "mate" just put big chunk of company money to offset his own personal morgage account, naturally they would have viewed this as benefit in kind.

Anyhow, as far as I am concerned I'd rather keep big amount of legit cash in my personal bank account so that any crap in life that happens so often can at least be dealt with easily and if IR asks questions then I've got all the paperwork. Naturally I would not just take lumpsum from business account and put it into personal unless all due tax is paid etc.

If you don't have good money in your bank account you are already screwed, and with IR I will take my chances especially because the law is on my side.

AtW is in for one big shock in life.....watch this space.....

[AtW]

AtW is in for one big shock in life.....watch this space.....

Listen dumby, the money that I have in my personal bank account are not even related to Ltd, they were cleared from all taxes while I was permie, so IR will never get anything there.

In any case IR people seems rather reasonable and I am pretty sure that those stories of people being pursued by IR are because said people took the piss and naturally IR thrown a book at them to make example of.