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Where Taxpayers and Advisers Meet

Tax investigation on LLP - already ceased trading

SYR
Posts: 41
Joined: Tue Dec 13, 2011 12:22 pm

Tax investigation on LLP - already ceased trading

Postby SYR » Fri Nov 22, 2013 12:41 pm

Hi,

HMRC carried out test purchases on our restaurant in Feb 2013 and they concluded that there were missing sales not recorded in the business takings. They subsequently revised net sales for the past 4 years! We already ceased trading in June due to cashflow difficulties - the partnership owed a few months rent, suppliers and VAT liabilities.

Can anyone advise whether LLP could protect the partners from potential tax liabilities?

Your help would be much appreciated.

AvocadoK
Posts: 1232
Joined: Wed Aug 06, 2008 3:46 pm
Location: Lancashire

Re: Tax investigation on LLP - already ceased trading

Postby AvocadoK » Sat Nov 23, 2013 10:56 pm

As far as income tax (& Class 4 NIC) is concerned, this is a liability of the partners, not the LLP, so HMRC will assess you personally.

SYR
Posts: 41
Joined: Tue Dec 13, 2011 12:22 pm

Re: Tax investigation on LLP - already ceased trading

Postby SYR » Sun Nov 24, 2013 12:08 pm

Dear Avocadok

Thank you.
How about VAT liabilities?

I have been informed that I have 30 days to appeal against the income tax assessments raised (dated 17 November ) on the 3 partners. We all use different accountants to deal with our own tax affairs. We also changed our accountants in April to save costs but our LLP eventually went into liquidation in July. I don't think our previous accountant would be very helpful and they are very expensive hence we changed our accountants.

Any advice.
Many thanks

AvocadoK
Posts: 1232
Joined: Wed Aug 06, 2008 3:46 pm
Location: Lancashire

Re: Tax investigation on LLP - already ceased trading

Postby AvocadoK » Sun Nov 24, 2013 8:27 pm

VAT is a liability of the LLP, not the partners.

I'd recommend you use the same accountant for the appeal and enquiry, as you will otherwise be trebling up on costs! Also, you need to be giving explanations that are all consistent. HMRC will seize on any inconsistencies, and use them against you.


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