HMRC Pending Statutory Demand & Bankruptcy - Dont know where to turn

[slick132]

Hi Reval and sorry to be late posting but I've only just seen the request for my input.

 

First off, this scenario has been going on for many years so stop trying to sort it all out in a rush. Panicking will get you nowhere. You need to give us some info so we can point you in the right direction.

 

You almost certainly need to engage the services of a firm of Chartered Accountants who have personal tax specialists who will have the experience to tackle HMRC in the right way.

 

I would not make a complaint at this stage to an MP - way too early. You need expert advice from someone who can go through the figures for each year with you.

 

Also, you need to be aware that the HMRC Compliance folk who "work out what you owe" have little control beyond their assessing what is allegedly owed. The tax collection side are not interested in how a debt arose - they only care that it's paid quickly.

 

A solicitor is not what you need. Generally, a tax specialist with a Chtd Acct will be the best, and the cheapest option.

 

Finally, stay OFF the phone from now on. If HMRC call you, tell them you require everything in writing only, then hang up !! And do NOT call them for any reason.

 

Some info please:-

 

1. Who said a SD is due any time. Was this by phone or in writing.

 

2. Were you paid under PAYE from the employer, or treated as self-employed.

 

3. Have you received detailed calcs of how the alleged arrears arose from the Compliance officer, including tax, interest and penalties.

 

4. How did you claim tax relief on the entertaining and motoring costs - ie under what heading did you claim relief for each on your SA tax returns.

 

Specific answers please to each Q and we'll move on from there ..............

 

[slick132]

Hi again Reval,

 

I also want to add - I see no reason at all for you to feel ashamed of what you did.

 

Unless you knowingly set out to defraud HMRC, I think you have made mistakes which have been compounded over the years.

 

I suspect HMRC may well have taken advantage of your naivety, your fears and your wish to sort this quickly and quietly.

 

Edited September 5, 2017 by slick132

[slick132]

Thanks Reval,

 

I can assure you, seeing an accountant's tax specialist will help you put this into perspective. They will explain how HMRC work and take advantage of a taxpayer who is not represented by professional who knows the ropes.

 

Stop panicking about this. Stop worrying about shame or embarrassment.

 

Start to sort this TODAY if you can by seeking an accountant who specialise in HMRC tax investigation. Don't pick the first you find - seek recommendations by someone you know who can recommend a firm. Ask the firm for an idea of the hourly fees you'll incur including VAT.

 

Speak to, or visit, 2 or 3 firms to find one you think understands your problem, and you think you could work with.

 

An SD is really not a huge problem and it can be easily challenged and put on hold by a tax specialist, until you have got advice and support.

 

I suggest you get the tax specialist to go over the papers you have from HMRC (including the detailed final calcs showing the amounts due) to see what you can do to have this looked at again with a view to reducing the tax due. Also the interest and penalties.

 

I wonder WHY HMRC never challenged your claim for expenses over all these years. It is pretty rare for an employee to have valid claims for expenses beyond basic amounts for clothing, subscriptions, etc.

 

If HMRC calls you about money owing that you haven't paid on time, tell them to write as you are now dealing with this in writing only.

 

Seek recommendations from family or friends and get yourself the professional help you need - today !

 

[slick132]

Hi TaxHero,

 

I would recommend using a Chartered Tax Adviser. They have the most tax knowledge.

 

I disagree - The CTA (formerly ATII) qualification is something that some people that work in taxation for Chartered Accountants might take but IMHO the majority of tax specialists will work without specific qualifications. There are thousands of tax specialists with vast experience and knowledge who work for Chtd Acct'ts under the supervision and control of the firm they work for.

 

My main concern would be to find a Chtd Acct't with adequate tax staff to have good experience and knowledge of working in HMRC Compliance or Back Duty investigations.

[slick132]

Hi Reval,

 

Continue the search for a firm that'll take on your case and help you appeal on the basis that you didn't know what you were agreeing to, with no professional advice at the time.

 

Sorry but I don't agree with UncleB's post #36 .

 

I see no point in getting info from your employer as this is just not relevant to your case.

 

I would focus on finding a tax specialist to assist - keep at it and you should find the help you need.

 

[slick132]

Hi UB,

 

Reval's entertaining expenses should have been reimbursed by the employer but they were NOT, for whatever reason.

 

Any arrangement between the employer and employee does not alter the fact that OP may have claimed expenses that were not allowed.

 

Reval is NOT going to be able to sue the employer IMHO. The issue really is between Reval and HMRC.

 

Edited September 10, 2017 by slick132