Reply to: Am being investigated (Non IR35)

[Flat Eric]

Well if your going to ignore everyone's advice and go it alone make sure you stock up on some ky jelly.

I'm not to ignore people advice, on the contrary, I value it a great deal. If I hadn't listened to you guys I would never have contacted PCG.

I'm just completely bewildered by the whole thing and, quite simply, want the problem to go away. I've fired off an email to my accountant to see what he can do either by speaking to HMRC directly or offering me advice.

[oracleslave]

I can't see how my accountant could help...

Well if your going to ignore everyone's advice and go it alone make sure you stock up on some ky jelly.

[ASB]

Your accountant will almost certainly be much better at negotiating settlement than you. HMIT also has a certain amount of discretion as to what they will accept. I tried to handle one investigation and settlement myself. I would never ever even contemplate it again.

[Flat Eric]

I can't see how my accountant could help...

This isn't a company thing and it was way back in 2004. Don't get me wrong, I'm understand that HMRC will be "inserting it roughly". I just can't see what could be done. They've got me bang-to-rights.

As I said earlier (I think). I've never had any trouble with HMRC and I'm really keen for this to just go away.

I will have a chat with my accountants though, just for peace of mind. but I don't want it to drag on and affect the costs/interest etc.

[Ardesco]

PCG claims have come back and said ...

So I'm going to draught a letter to HMRC explaining the situation and fall on my sword...

Wish me luck

For the sake of all that is holy do not write to the HMRC!!! Get a professional to deal with it for you, e.g. your accountant. They will find a way to save you money.

Writing a letter saying you got me how would you like me to bend over will not help you one little bit.

[cojak]

SPEAK TO YOUR ACCOUNTANT!

This isn't an IR35 fight - everyone will know that bringing an accountant is the best thing a financial lay person can do.

[Flat Eric]

PCG claims have come back and said ...

I regret to advise that we are unable to accept a claim on this occasion as the H M Revenue’s enquiries are being made under Section 29 Taxes Management Act 1970 (discovery provisions) and unfortunately the policy does not extend to include any cost incurred in handling this type of enquiry

So I'm going to draught a letter to HMRC explaining the situation and fall on my sword...

Wish me luck

[IR35 Avoider]

A professional will not make things worse, and will know what discounts to you are entitled to in return for your total co-operation and quick payment, and will ask for them. Use your PCG insurance. The worst that can happen is that it costs your £200 (or whatever the excess is) and you pay the same amount you would have paid yourself, but there's a reasonable chance they will save you more than £200.

[NotAllThere]

Only for a criminal offence surely? I have never heard of anyone being extradited over tax owed - are there any cases?

If he moves to Switzerland and refuses to pay tax he actually does owe, that's evasion, which is criminal.

You will certainly have to pay the sum owing even if it's THEIR mistake, much less yours.

That's what I had to do. Fortunately, the sum owing was only £800 - so I felt it was worth paying the interest on that to never hear from them again!

[malvolio]

And further to that, the actual coverage of the PCG insurance is detailed at http://www.pcg.org.uk/cms/index.php?...997&Itemid=148

You qualify so phone Kevin!

[Ardesco]

I was going to make a claim under my PCG insurance but I'm of the opinion that bringing in a third party would potentially "antagonise" the situation and could lead to higher charges than simply falling on my sword and copoperating fully.

Getting a professional to deal with it for you will not antagonise the situation and may well save you a huge amount of money if the professional can make a deal for a reduced payment (This does happen).

Don't just belive everything the tax office says, they aren't here to make your life easy, they are here to take every penny they can to try and cover the huge debts that the current government has got this country into. Bending over and taking it up the ass is exactly what they want you to do because they get more money out of you.

Get a professional to go over all of the figures, at the moment you think the tax office is right, but it is possible you and the tax office has missed something that could change your position.

If you pay for the PCG insurance use it, there is no point in having it if you don't.

[BrilloPad]

If you move to Switzerland, you can still be extradited - but your money can't be.

Only for a criminal offence surely? I have never heard of anyone being extradited over tax owed - are there any cases?

[malvolio]

Thanks Denny,


by the way, the PCG insurance only goes up to £1500 per claim so it wouldn't really do me much good anyway and may result in the HMRC figure being increased by more than this anyway. I'd only need to p*ss of HMRC by 10% to obliterate this figure, so my thinking goes.

M.

What? Where the hell did you get that from? The insurance is to cover the cost of any tax investigation.

FFS phone the office and get the real picture before you write off a few 10s of thousands that you may not owe.

[Flat Eric]

Another way to look at it is this: if the money wasn't yours then you didn't need to remortgage to fund the tax owing at the time, as you do need to now to pay it back. Property prices have gone up so much since 2004 that you have already made this much you owe and more besides.

Therefore, you haven't really lost anything or not nearly as much as you think and you could see this tax demand as an repayable loan on an investment.

I know it's all psychological rather than substantive to reduce the sum owing, but it may make you feel a lot better if you can't do anythng else but pay it.
Sometimes this can help you stop feeling so pissed off.

In my experience of HMRC, ignorance of the law is no defence. They may waiver the added penalty surcharges if you explain that it was a mistake, but it is highly likely the interest will still stick if the sum you've quoted doens't include this. You will certainly have to pay the sum owing even if it's THEIR mistake, much less yours. After all, it still wasn't your money at any time, even if you thought it was at the time.

Obviously do as much as you can to reduce the payment or arrange staged backpayments.

Thanks Denny,

After sleeping on it a couple of nights I've decided that I'm simply going to write HMRC a letter stating the facts. I was going to make a claim under my PCG insurance but I'm of the opinion that bringing in a third party would potentially "antagonise" the situation and could lead to higher charges than simply falling on my sword and copoperating fully.

As people have said, I'm still liable for the money, no amount of wrangling can get around that. I thought what I was doing was correct but as has also been pointed out, ignorance is no defence. I'm hoping that my contrition will count towards me. fingers crossed.

by the way, the PCG insurance only goes up to £1500 per claim so it wouldn't really do me much good anyway and may result in the HMRC figure being increased by more than this anyway. I'd only need to p*ss of HMRC by 10% to obliterate this figure, so my thinking goes.

M.

[Flat Eric]

You didn't answer my original question - do you know that you can offset losses from several years ago? So do you have any trading/capital losses in the years preceding (& including) 2004?

Sorry TazMaN, unfortunately I don't have any losses to offset. This isn't a company issue but a personal self assessment descrepancy.