A self-employed taxpayer who had been preparing his own tax returns for some years received an enquiry notice. During the course of the enquiry, it emerged that he had been deducting drawings from his profits as if they were employee costs, giving rise to substantial further tax.
His financial circumstances are very poor. He can afford £200 per month and the Revenue are adamant that £500 per month is as low as they will go - they originally wanted £800. They have made it clear they won't budge another inch and seem happy to force bankruptcy.
Any ideas? Debt adviser? Citizens' Advice?
Many thanks in advance.
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