its me again with another silly question[:I]
I was self employed up to end of last year and have some tax returns outstanding. I am now employed F/T.One of them has a determination raised and they are looking at commencing enforecement action.[:(]
I have not been able to get my accountant to do any returns as my book keeping has not been the best and records are not up to date[:I]
my question is - will HMRC allow my outstanding ammounts to them be included in an IVA if they have not received any returns? I think most of their estimates are far too high anyway but i was wondering was it possible to just forget about sending in the returns and accept their estimates and have them included in an IVA?
Sorry for the long winded ramble but this is really annoying me and is the only thing that is preventing me from going for an IVA at minute.
If you propose an IVA with outstanding returns HMRC will almost certainly reject based on estimates. Ultimately, they understand that people can get into financial difficulties but there is no justification for not completing returns.
Speak to your IP who should be able to help. If you do not have all the records estimates will have to do but the returns must be submitted. If you do not do the returns nor propose an IVA you could be made bankrupt on estimates which may not even be owed.
thanks michael.
waht about the one that a determination has been reached on - does this mean they are going to try and take us to court for that ammount - could i not get it included in an iva nad ask them to hold fire on the remainder?
I am embarresed about going to my accountant ref this as he is a personal friend and i would rather not have him knowing the mess i am in.[:I]
even at this late stage would they accept estimates if i filed them myself - iwouldnt have an idea where to start![:I]
The determination would be included as a debt and the outstanding returns can be submitted by yourself even at this time. If you do not want to use the accountant you could go to the local tax office and they will help you submit the forms. The final figure will not be exact but at least the returns will be in. I doubt if there will be too much investigation into your tax affairs as you now employed and not running up any more HMRC liabilities.
Thanks again.....should i let the HMRC know that i am considering an IVA and ask to make an appointment to sort out the outstanding returns?
What would they need to see to do this - bank statements etc?
Would i complete this at home and then go an see them?
sorry for seeming so stupid but i am really lost with this!!
There is no harm telling HMRC what you propose to do. Have a look at their site and see the self assessment forms as they are not as scarey as they look. Bank statements, receipts, invoices etc are usually needed for the returns but if you do not have them estimates can be submitted. If you subsequently cannot prove an expense it could be disallowed but this would only increase the HMRC claim and not invalidate the IVA.
You can pretty much guarantee a rejection vote from HMRC if you have outstanding tax or VAT returns which have not been submitted.
Personally I would engage a professional to assist you with this - many good accountants are used to working with incomplete records, and professionally prepared accounts may come across with greater credibility at the end of the day.
Is it likely that the eventual HMRC debt will represent more than 25% of your aggregate unsecured debt?
Thanks Mel - The HMRC total ( according to their estimates) is around 10% of the total debt.
because of this would they not be obliged to abide by the majority vote and accept the IVA?
Could i go ahead with the IVA and then add on the HMRC bill once i had the returns complete?
It would depend on the amount of the HMRC debt. They could assess a figure much greater than owed which would give them a large enough percentage to reject or if the amount is relatively small they may not even vote at all.
If the IVA is accepted with returns outstanding you would have to get them in very quickly and have your affairs tidied up otherwise HMRC could raise a post IVA assessment and bankrupt you.
It is important that you get your tax returns in so that HMRC's claims can be quantified. This will help determine your overall financial position and your IP firm can advise you on options accordingly.
Unless you've decided to go bankrupt, not submitting the returns isn't an option.
Regards
Andrew Bowers
Licensed Insolvency Practitoner
Hi - I don't understand the bits about HMRC but when it comes to voting you need 75% of votes not 75% of total debt. It may be that HMRC are the only ones that vote and then they count for 100%. You'll kick yourself if HMRC swing a rejection because you don't have their paperwork up to date.
What is actually the problem about submitting the returns? Are there a lot of business transactions through your accounts which will take a long time to record and therefore submit the paperwork to HMRC? I agree with the other posters - get them done now and then they are out of the way.
Hi guys,
you may recall some time ago I asked a question about tax rebates. I was due a rebate of £280. The funds were ot forthcoming from the HMRC. I contact IP who advised that the rebate would need to be introduced to the IVA ( fair enough)However, HMRC have not paid anything to my IP, nor have they contacted me to let me know what they are doing with these funds. I called and was told that a specialist department had to deal with my case due to the IVA and I would be called back within 5 days. This was over a month ago.
Surely HMRC are acting a little unfairly here and cant just seize my rebate and not let me know what they are doing with it. I dont have any outstanding amounts due to HMRC.
IVA approved 18th Sept 2010!!
"There is nothing that is a more certain sign of insanity, than to do the same thing over and over and expect the results to differ" Einstein
They will not be retaining the rebate on purpose - as with all government departments at the moment, they are suffering from staff and resource cuts and I am sure they will get round to looking at your case as soon as possible. Given that you have nothing to gain from chasing the rebate, why not let your IP do the hard work in chasing this along.
