Hi guys and girls! I will introduce myself later but I need to get this up and running.
I have agreed to help someone out ( I know, I know).....She had a business for approx. 3 months in the tax year 2011-2012 (Yes that is the right years!) However due to outside circumstances she had to cut it loose. She registered with HMRC and when it ended she informed them of this. Apparently they asked about profit/losses...she said she lost roughly 3k. They told her that's fine they would mark it down and that would be fine....she started getting letters saying she was late with filing etc, rang them up and was reassured she was fine and that they would stop the letters and cancel any outstanding amounts....this was back in 2012...she now has a bill of around £1300. She is adamant that she shouldn't have to pay it because she was told she didn't have to. Since then she has phoned to be told she did owe the bill and she did need to do a tax return for said year.
Now the issue I'm at is...she has no records from the business so cannot confirm to me what exactly went in or out to do the self assessment. How can I get around that?
Also I'm assuming that they won't drop the bills etc because none of the things she is saying is in writing.
Any help greatly appreciated and I look forward to being part of the forum.
Ben
I can't imagine anyone from HMRC actually saying that to be honest -sounds like she may have confused what they have told her.
It will be very difficult if she has no records -she may well get fined for not keeping her records as they have to be kept for at least 6 years-has she no bank statements or anything -how did she keep her records ?
You could put the figures through that she has told you but it is very risky without any proof and may well come back on her to prove the figures
Not too sure how you can help her without any information
It's what I thought. She hasn't gone into exact details of what happened in this time period but it sounds like she had to leave quite quickly and thus lost information. She has her UTR though! Which is something...
I'm not currently set as her agent with HMRC so won't be able to talk to them...I've asked her to ring them just to clarify exactly what she needs to do and/or expect.
Hi Ben, I would complete the tax return based on her best estimates, you could always explain in the White space that it is estimated. There may be a problem with the penalties, however write hmrc a letter explaining things and see if you can give dates of the phone calls if possible just to give some more credence. Good luck
I would do what Rob says and complete the tax return on her best estimates. Tick Box 20 then you don't have to explain in the white space anything. Box 20 is to confirm that the tax return contains provisional or estimated figures.
Then wait for it to be processed and then once you know what the "damage" is in relation to fines, you can appeal them.
Then wait for it to be processed and then once you know what the "damage" is in relation to fines, you can appeal them.
I had a very similar situation earlier this year, although the period was one month with a profit of £500 I completed the returns that were needed to be done then filed an appeal, which was successful.
