Can anybody on here recommend anybody that could assist a potential client I have met with today who has been out of the UK tax system for over 10 years. They have now received a letter saying they have been fined for not submitting any tax returns for many years but they do not think they should have been completing them as "it was cash work".
They have been doing cash jobs and been travelling around the UK and europe but would now like to go self-employed legally and are worried about the back dated fines ana also that be trying to do things right, their head is going to go above the parapit and HMRC will look into their tax affairs in more depth.
If anybody knows somebody who is experienced in dealing with this type of client, I think a specialist tax investigator, it would great and i'll explain to them how best to proceed.
Was it legite that he hadn't paid any tax etc while doing cash jobs???
I knew someone who received a very large tax (well over £25K), because he claimed to be helping a mate out and had not worked properly, it was all a lie and HMRC had proof via suppliers that he had used, and got him well and truely.
When I first met him he told me the scenario, off course his version. Just make sure before you get too involved that you are not opening a can of worms. Off course he may well be very honest.
Point him in the direction of a very good accountant, but it will cost him as they may ask for money up front if they actually think he may well owe something, all be it maybe not alot? Really he should have submitted a tax return at some point, especially if he was regisitered, to say he was not working saying that he had no income etc then at least HMRC wouldn't have thought he was still working but avoiding the system.
You might see a couple of sponsored links for tax investigation services at the bottom of this webpage. Another keen provider I know of (though I haven't direct experience of his work) is at www.martynarthur.com .
I must admit your statement that they "want to go self-employed LEGALLY" worries me, as that appears to almost be an admission that you already suspect what this individual was doing before was NOT!
Unless this a good freind I'd run a mile, or as above suggest they need to use a good accountant to find out what they could owe HMRC.
Does sound to me like they are heading for a fall.
Ridesy
-- Edited by Ridesy on Sunday 10th of June 2012 11:38:17 AM
Can anybody on here recommend anybody that could assist a potential client I have met with today who has been out of the UK tax system for over 10 years. They have now received a letter saying they have been fined for not submitting any tax returns for many years but they do not think they should have been completing them as "it was cash work".
If this is the starting point, it could be a long road. If you take the work on, make sure you get paid up front. If they seriously believe that they didn't have to complete tax returns because they were doing cash work, they have perception issues!
I think that many good accountants would run a mile as well Ridesy!
I think that the time to possible financial return involved in this one is unlikely to be worth the accountants effort.
And my advice is similar to Ridesy's. Wash your hands of this one unless you want HMRC's attentions focused upon you.
Always seems to get lost in translation but remember, to HMRC we are our clients so choose them wisely and don't be afraid to dump those that are a threat to your image and reputation.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
