Have any of you had a client come to you can say 'HELP'!!!
I have had such a matter just the other day; I visited the 'asker' to see what the issue was. Long story short they have completely buried their heads in the sand for anything to do with HMRC. All fine letters and letters from HMRC saying they are sending someone round; I dont think Ive ever seen so many HMRC warnings!
Well it turns out that this person may owe around 2k in non-paid tax, but with fines etc. it could be a lot more.
They opened up to me quite a bit, so much so they looked like they were close to breaking down. Now it turns out they have been suffering with ME which if you dont know (ME is a condition where you have long-term disabling tiredness (fatigue). Most people with chronic fatigue syndrome/ME also have one or more other symptoms such as muscular pains, joint pains, disturbed sleep patterns, poor concentration, and headaches)
NOW, my question is: focusing on the latter part of the conditions listed above namely 'disturbed sleep patterns, poor concentration and headaches' it has made all this HMRC hounding too much for them hence ignoring it. Now before entertain the thought of taking them on as a client could this above condition be used 'in part' to assist their case with HMRC? Im not talking about being let off for the fines but certainly some leniency when it comes to repayment of the debt if we obtain a doctors certificate? Has anyone come across this before?
The work is simple enough, we have proof of income, (but not many expense receipts), so the returns themselves will be easy enough (for the last 2 years!) and everything from this year has been dumped in a file, again which is easy enough to sort out and produce accounts with. When this is all sorted out I have promised them (if i take them on) that they will never have to worry about the finances of the business again except to keep everything and pay HMRC at the end of the year.
May I have a few opinions please fraternity? (Namely about the medical condition if you can, but all help is greatly appreciated)
Sorry I don't know enough about the medical condition to comment on it, but HMRC may look at a repayment plan especially as its only £2k + fines. I doubt if they will be let off the fines etc as the computer spews them out according to the situation. I have just helped someone on to a payment plan and they were very good with the company concerned, after all they wanted their money and if they forced their hand to close they would have not got a penny.
I would think it may be worth getting a Doc's certificate to back up the condition, the problem with the condition is its not a very well recognised one, the reason I say this is I use to know someone a long time ago who had this (this was over 20 years ago), and in the end she had to go to a lot of therapy sessions to help with it and decided to train as a therapist to help others with the condition, as at the time the Doctors weren't very helpful with medication so she sought alternative therapy's to help. It may have change by now and be more recognised?
If you feel you could help them with their business and you don't see any other problems with it then take them on and rise to the challenge, it's always nice to have a challenge. I'm assuming in all of this they are not VAT reg? So its not VAT that they owe as well as taxes etc?
Some people just can't cope with the finances of the business as well as running their business and doing what they do best. It sounds like they are like this. They were probably quite relieved when they met you, and glad to tell you their problems in the hope that you will be able to help them out.
I probably can match the HMRC warning letters etc with one old client, hes not trading any more. (Long story but bury head in the sand is very apt)!
Yes mine included VAT as well as everything else, I expect his bill from HMRC was probably in the region of £20-£30k over a period of lets just say years, I never found out in the end as he was hopeless (never found it all out till afterwards), but didn't work for him long due to various reasons. He never told me anything at our initial meeting, it was only when I was going through the paperwork that I realised how bad it was and there was absolutely no hope.
Good luck with it all Gary, you may be able to savage them?
Edit:- I guarantee you I have more letters and thats just the ones that I saw, I suspect there were loads that went straight into the bin!
-- Edited by Amanda on Saturday 13th of April 2013 03:47:54 PM
