tax inquiry

by **peter6652** on Wed Feb 24, 2010 3:10 pm

I have been sent a letter from the tax - it seems my accountant has declared more subbies working for me than actually did, despite the fact that I sent off my subbies tax deductions every month after checking my cheque book which I use to pay subbies. If this is the case it could amount to £35 k having to be paid.My house is owned by myself -50% and two daughters -25% each. Over time if the figure is 35K could it be paid over a period or would they have the right to seize my share or all of the house. To make matters worse my old accountant has told me that he returned all my records which I know he hasn't otherwise I could have done a new set of accounts if the Tax people allowed it. I was also thinking of gifting my daughters my house and paying them rent. Please advise

by **wardown** on Wed Feb 24, 2010 3:33 pm

My wife and I bought our first property in 1988 for £62,000 which we lived in as our Primary residence until 2006. In 2006, we bought another house and moved into this new property as our primary residence. We tried to sell the first property without success and our children lived in it for free. We are aware that HMRC gives you 3 years to sell your previous Primary Residence. We are now outside that 3 year period. How would we work out the tax due if we were able to sell the first property now.

Thanks
Neville

by **pawncob** on Wed Feb 24, 2010 3:44 pm

Wardown

The gain will be the selling price, less cost and expenses. This gain will be time apportioned to reflect the time when it was your PPR, and charged at 18% after annual allowance.

If you let it commercially you'd also get up to £40k letting relief.

(Next time, post this under CGT, not Enquiries!)

by **mullet** on Wed Feb 24, 2010 5:40 pm

Confused by the second unrelated query! Returning to the original question:

If the figure is 35K could it be paid over a period or would they have the right to seize my share or all of the house. Time to pay will depend on how serious they think the matter is, and also on your ability to pay. They are more likely to seize moveable assets or start County Court action than put a legal charge on your property or begin bankruptcy proceedings and take the house. It is rare for a family home to be taken.

To make matters worse my old accountant has told me that he returned all my records which I know he hasn't otherwise I could have done a new set of accounts if the Tax people allowed it. Surely it's just a case of amending one or two figures? Or is it more complicated than that?

I was also thinking of gifting my daughters my house and paying them rent. Is this to avoid potential HMRC action as a creditor? It wouldn't work, it's too obvious. And would it really be a gift? Would they truly be able to throw you out, sell up and keep all of the money? If not, then it wouldn't be a true gift. (Are they 18 or over?)