Hi guys,
After doing some thorough investigation I think I have been tricked by this Payroll Services company called BCSL Browning Contractor Services (CY) Limited to commit what is called disguised remunaration. I called them and they explained half of the company is in Cyprus and half in the UK and initially when I started I didn't know much about UK's tax system and because they said they had a UK presence in the I thought they are ok legally. The staff is British and when I talk to them on the phone, they seem to have offices as there's noise in the background etc.
However, I realised that my limited company -> pays an invoice BCSL Browning Contractor Services (CY) Limited raises against my company -> then they pay me in my personal account. I asked them many times if this is legal and they said those are grants and everything is ok. I have always paid the corporation tax and everything I got from HMRC on time.
I started trading in Dec 2017 so I have 2 fiscal years so far:
2017-2018
2018-2019
I have called my accountant to redo the Self Assesment Tax Return for both years and include these grants as taxable income. Now because of her negligence, she didn't do the SATR on time for 2017-2018 and it was submitted this month.
What kind of penalties am I expecting? Has anyone has gone through something like this before?
The grants value is under 30k for 2017-2018 and under 50k for 2018-2019. I have reported to HMRC my situation and I think they will open an investigation. Can BCSL Browning Contractor Services (CY) Limited be brought into this legally as they have misled me into potentially breaking the law? I don't have money to pay a lawyer... and I'm afraid I won't be able to pay the HMRC bill... Should I go for bankruptcy? I have reported them to HMRC already.
After doing some thorough investigation I think I have been tricked by this Payroll Services company called BCSL Browning Contractor Services (CY) Limited to commit what is called disguised remunaration. I called them and they explained half of the company is in Cyprus and half in the UK and initially when I started I didn't know much about UK's tax system and because they said they had a UK presence in the I thought they are ok legally. The staff is British and when I talk to them on the phone, they seem to have offices as there's noise in the background etc.
However, I realised that my limited company -> pays an invoice BCSL Browning Contractor Services (CY) Limited raises against my company -> then they pay me in my personal account. I asked them many times if this is legal and they said those are grants and everything is ok. I have always paid the corporation tax and everything I got from HMRC on time.
I started trading in Dec 2017 so I have 2 fiscal years so far:
2017-2018
2018-2019
I have called my accountant to redo the Self Assesment Tax Return for both years and include these grants as taxable income. Now because of her negligence, she didn't do the SATR on time for 2017-2018 and it was submitted this month.
What kind of penalties am I expecting? Has anyone has gone through something like this before?
The grants value is under 30k for 2017-2018 and under 50k for 2018-2019. I have reported to HMRC my situation and I think they will open an investigation. Can BCSL Browning Contractor Services (CY) Limited be brought into this legally as they have misled me into potentially breaking the law? I don't have money to pay a lawyer... and I'm afraid I won't be able to pay the HMRC bill... Should I go for bankruptcy? I have reported them to HMRC already.
Comment