Reply to: HMRC fines/interest if they disagree with your accounts

[psychocandy]

Ah that makes more sense. On that basis alone I'd have it back in. It's just not enough to worry about.


To me the other options are irrelevant for the reason I mentioned above. It's just not enough to worry about the rest. That's my opinion anyway.

Yep there comes a point when even if you're right or 95% sure its just not worth the grief.

[northernladuk]

Its nearer £1K.

Ah that makes more sense. On that basis alone I'd have it back in. It's just not enough to worry about.

OK two things to look at:-

1. Do I have an argument to do it my way and not pay it back? If there is no argument then I have no choice. If there is,

2. What are the chances of HMRC picking it up.

3. If they do, will they necessarily not agree with me.

4. If they dont agree, whats the worse that can happen.

So, as you can see, was no way planning anything "dodgy" at all just deciding if its worth it.

To me the other options are irrelevant for the reason I mentioned above. It's just not enough to worry about the rest. That's my opinion anyway.

[psychocandy]

If you're going to pay it back anyway, but you think you're right, why not phone the HMRC helpline and ask them?

Ha ha - If I thought I could get any sense out of them I would.

[psychocandy]

Daaaaamn! That sucks monkey balls. I see his dilemma now. I though it was just a matter of going to Skegness for holiday instead of Disneyland this year to balance to books.

Disneyworld NLUK. Get it right. Already booked. JSA or not here we got.

[psychocandy]

So what's the current situation in all this? PC has been advised by his accountant to pay it back, forum has said the same but instead he's looking at the ramifications of getting caught to see if it's worth him keeping it?

Also did we find out exactly what his hit is for all this risk? I saw 2K but this won't be 2k from his pocket ultimately will it? Do we know the exact cost to him?

Its nearer £1K.

OK two things to look at:-

1. Do I have an argument to do it my way and not pay it back? If there is no argument then I have no choice. If there is,

2. What are the chances of HMRC picking it up.

3. If they do, will they necessarily not agree with me.

4. If they dont agree, whats the worse that can happen.

So, as you can see, was no way planning anything "dodgy" at all just deciding if its worth it.

[Old Greg]

No I dont believe its got anything to do with IR35.

The reason I'm paying back is because its less than I though and, for that amount, its not worth dealing with any fallout or stress.

Like I said, I still think I'm right, so if it was a larger amount I'd NOT be paying it back and defending it.

If you're going to pay it back anyway, but you think you're right, why not phone the HMRC helpline and ask them?

[psychocandy]

They are accountants, not solicitors. And surely if you're sitting down with HMRC and your legal representatives you'd also want someone in the room who has access to your companies accounts? Or would you be planning on explaining that bit yourself?



Why, what's changed? FTAOD, I'm not saying you were clearly wrong. My point was that you were going against the advice from your accountant.

Accountant gave me a detailed run down of how much it'd cost. My accountants advice has been, in OUR INTERPRETATION it works like this and you should pay it back, BUT, its a grey area and I have a very good argument for my interpreatation also. But the advised HMRC may have a different opinion to me. Which is fair enough - cant ask any more from my accountant.

[psychocandy]

Some of us were.

And strangely enough, it wasn't long after we started talking about it before PC says he is going to pay this money back. Because he really doesn't want to trigger an IR35 investigation, does he?

I agree with him on this, though -- the legislation is crap. But it's what we have to live with as long as we keep electing idiots.

No I dont believe its got anything to do with IR35.

The reason I'm paying back is because its less than I though and, for that amount, its not worth dealing with any fallout or stress.

Like I said, I still think I'm right, so if it was a larger amount I'd NOT be paying it back and defending it.

[northernladuk]

The problem is that if it gets treated as income as opposed to expenses, it could affect his housing benefit.

Daaaaamn! That sucks monkey balls. I see his dilemma now. I though it was just a matter of going to Skegness for holiday instead of Disneyland this year to balance to books.

[Old Greg]

So what's the current situation in all this? PC has been advised by his accountant to pay it back, forum has said the same but instead he's looking at the ramifications of getting caught to see if it's worth him keeping it?

Also did we find out exactly what his hit is for all this risk? I saw 2K but this won't be 2k from his pocket ultimately will it? Do we know the exact cost to him?

The problem is that if it gets treated as income as opposed to expenses, it could affect his housing benefit.

[northernladuk]

So what's the current situation in all this? PC has been advised by his accountant to pay it back, forum has said the same but instead he's looking at the ramifications of getting caught to see if it's worth him keeping it?

Also did we find out exactly what his hit is for all this risk? I saw 2K but this won't be 2k from his pocket ultimately will it? Do we know the exact cost to him?

[Darren at Fox-Bartfield]

Article

Maybe of interest......posted on the smallbusiness.co.uk site

Link

[Pondlife]

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....

They are accountants, not solicitors. And surely if you're sitting down with HMRC and your legal representatives you'd also want someone in the room who has access to your companies accounts? Or would you be planning on explaining that bit yourself?

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.

Why, what's changed? FTAOD, I'm not saying you were clearly wrong. My point was that you were going against the advice from your accountant.

[WordIsBond]

I wasn't talking about an IR35 enquiry.

Some of us were.

And strangely enough, it wasn't long after we started talking about it before PC says he is going to pay this money back. Because he really doesn't want to trigger an IR35 investigation, does he?

I agree with him on this, though -- the legislation is crap. But it's what we have to live with as long as we keep electing idiots.

[WordIsBond]

I see no-one has yet given an opinion on what they'd do if they were in the same situation.

posted at 20:55

I'd pay it back. Yesterday.

posted at 15:39