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Where Taxpayers and Advisers Meet

Section 9a Tax Act 1970

infearofHMRC
Posts:1
Joined:Mon Jan 14, 2013 6:54 pm
Section 9a Tax Act 1970

Postby infearofHMRC » Mon Jan 14, 2013 7:09 pm

Hi people

Just a couple of quick questions, last year on my SA return I was trying to be smart and un-decleared some of my income to the HMRC, i recently received a letter from the compliance people that under section 9a, they will be looking at my tax return from 2010 - 2011.

My issue is this, in March 2008 i became self employed, in 2010 i became a sole director of a company and i paid myself through this company without paying any NI/PAYE, the company was struck off by companies house for not filling and in 2011 i again became a sole director of another limited company and repeating the process again, and this company has also been struck off by companies house for not filling.

On my 2010 - 2011 SA return i did not mention that i was a sole director of a company or that it had been struck off and i understated my income,
For the 2011 - 2012 return which i have to file in a couple of weeks, i want to come clean about everything, my question is will i be liable for corporation tax on top of the income tax and NI and penlites.

Cheers

mullet
Posts:3242
Joined:Fri Nov 06, 2009 9:26 am

Re: Section 9a Tax Act 1970

Postby mullet » Mon Jan 14, 2013 7:27 pm

This is not good. HMRC could consider making you liable for the two company's tax/NIC debts, as you must have known that you were receiving remuneration without the operation of PAYE. There are special regulations which enable HMRC to transfer the PAYE liability to you, but not the corporation tax liability. You need professional help to (a) manage a disclosure to HMRC and (b) set you right for the future.

johnowirr
Posts:12
Joined:Mon Dec 10, 2012 11:11 pm

Re: Section 9a Tax Act 1970

Postby johnowirr » Tue Jan 15, 2013 12:35 pm

I agree entirely with the comments made by Mullet.

Seek professional advice particularly as you state you entered incorrect details on the Return knowing they were incorrect. This will have a marked effect on any penalties which may be sought by HMRC. The sooner you admit the errors the better but the disclosure should be complete and unprompted by HMRC.

wamstax
Posts:2019
Joined:Wed Aug 06, 2008 3:39 pm
Location:Operate Nationally but based in Aberdeen
Contact:

Re: Section 9a Tax Act 1970

Postby wamstax » Wed Mar 20, 2013 3:55 am

I am afraid that what you did as regards your companies is called phoenixism and no doubt the only creditors were HMRC Vat etc with you setting out in the second instance to repeat your evasion.

HMRC treat such actions as extremely serious and depending on how much tax was evaded you might consider approaching someone experienced in dealing with Seriuos Criminal investigations; Civil Investigation of Fraud, or Taxes Criminal Unit teams so that you can determine if there is a risk of you being referred to such an office.
regards and hope this helps
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Operates Nationally with competitive costs
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