Unpaid Taxes

[wellread1]

I have been trading for 3 years as a self emplyed partnership. However, due to financial difficulties and poor planning have not paid any taxes during that time. I am now in a position to make a one off payment to cover the 3 years. However, I am concerned that the revenue are going to throw the book at me and would like to know what they are likely to do and how I should approach the matter.

I'm very concerned and would appreciate any comments.

[accountant@uktaxshop]

I quite understand your concerns here – the uncertainty about what will or won’t happen can be very stressful.

However you will be pleased to learn that by making a voluntary declaration you stand in a much better position with the IR, than if they find out you have undeclared earnings and investigate your affairs.

What I suggest you do is get all your records together to show the income you have earnt and the expenses you have incurred, and look to engage an accountant to act on your behalf to prepare the tax returns.

The accountant will have two main functions, firstly to ensure all the allowable deductions have been claimed and you minimise you initial liability, and secondly to act on your behalf to negotiate with the revenue as to the size of any penalties imposed.

Alternatively you could try to put the books together yourself and approach your local tax office. However you have to remember that however fair the IR try to be, their aim is revenue collection and not saving you money.

If you would like further information or would like to consider using my services, please give me a call. This sort of situation is something I deal with on a regular basis, and I would be delighted to assist you further.

Regards

James Smith
Chartered Accountant
www.uktaxshop.co.uk
01284 764436