Just been reading about a case on AWeb

A woman did not file a tax return in 2008/9 because she had started full time work, and was no longer self employed. Bottom line is the court ruled for HMRC, and it cost her £825 in penalties.

The appellant was required to complete a tax return until she was notified to the contrary by HMRC. The onus was on her to obtain a form and to make an assessment of the tax due unless she submitted the form in sufficient time, in accordance with section 9 Taxes Management Act 1970, for HMRC to calculate the tax due and to inform the Appellant of this by the relevant date when it was 5 due for payment, which in this case was 31 January 2010.

http://www.financeandtaxtribunals.gov.uk/judgmentfiles/j6154/TC01764.pdf

Edit Forgot to say that 4-5 years worth will add up to a tidy sum, and means we wont be subsidising his lifestyle.

Why do people think it's clever when they think they are getting away with out paying tax due? Don't get me wrong I am not for paying more than is due, just what is due.

Bill

Wella wrote:

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Just been reading about a case on AWeb

A woman did not file a tax return in 2008/9 because she had started full time work, and was no longer self employed. Bottom line is the court ruled for HMRC, and it cost her £825 in penalties.

The appellant was required to complete a tax return until she was notified to the contrary by HMRC. The onus was on her to obtain a form and to make an assessment of the tax due unless she submitted the form in sufficient time, in accordance with section 9 Taxes Management Act 1970, for HMRC to calculate the tax due and to inform the Appellant of this by the relevant date when it was 5 due for payment, which in this case was 31 January 2010.

http://www.financeandtaxtribunals.gov.uk/judgmentfiles/j6154/TC01764.pdf

Edit Forgot to say that 4-5 years worth will add up to a tidy sum, and means we wont be subsidising his lifestyle.

Why do people think it's clever when they think they are getting away with out paying tax due? Don't get me wrong I am not for paying more than is due, just what is due.

Bill

-- Edited by Wella on Monday 20th of February 2012 05:25:55 PM

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 I had similar, went self employed for about a month, they had been doing self assessments for the next 3 years until I politely reminded them that I hadn't been in receipt of income for 3 years as I was the one that stayed at home looking after children. I still put all the necessary zeros in where they wanted them though.

Truemanbrown wrote:

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Has your friend in the pub been sent a notice to complete a Tax Return each year (i.e. without the Return itself)?

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 He's not my friend so I wouldn't know sorry. I didn't get that far into it, he was just adamant that his mate had done this and that meant he was in the clear, my argument was that he wouldn't be in the clear and the tax folk don't just forget about you and it's all complete rubbish, however from the replies it appears that albeit small, there is a chance that I could be wrong.

mushroom wrote:

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I gained a client last year who was chased after 4 years, and an enquiry recently from a bloke HMRC caught up with after 5. I didn't get the latter account though due to my not being able to 'make the figures up' like the guy requested.

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 Hehe, you've got to love some people, how in the hell are you supposed to make it up without any supporting evidence. Saying that I suppose there are people that can, I wouldn't even knoe where to begin. 

Don Tax wrote:

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I don't know why they didn't adapt the old estimated system in operation before self assessment. This was where if you hadn't filed accounts by the autumn before the December instalment was due, they'd bill you for more or less double the previous years liability.

I seem to think they threatened to bring back a form of these estimates with 'determinations' but they're of little use if they don't arrive for 5 years. So they guy who was always late paying tax, now only gets a £100 bill now and then, instead of say £10,000 every six months. Weird.

I'm going to finish off a March 09 set over the weekend, but this guy has not been charged tax for so long that there's every chance he'll be made bankrupt.

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 So will he have to pay the tax due even if declared bankrupt? I'm assuming that tax is exempt from bankruptcy.