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Ash
Ash, Solicitor
Category: Law
Satisfied Customers: 10915
Experience:  Solicitor with 5+ years experience
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I am a small restaurant business and I have got my first

Resolved Question:

I am a small restaurant business and I have got my first visit from the VAT inspector to check my returns. I have so far sent in 2 quarters on spreadsheets showing my turnover, Because the spreadsheet showed a slight error they have requested I send in further 2 quarters, My issue now is that I have now discovered that I have not declared all my turnover in all 4 quarters, what I have discovered was 2/3 months ago I borrowed 60k through a merchant credit card company and the repayments are deducted on each credit card transactions I make, so for example if I sell a meal at £100 the credit card company transfers £100 into my bank account less their fee of 12%
And Of course I only declared the total amounts less the 12%. When I worked out my returns I stupidly used the my bank statements rather than using the till receipts.
I am now not sure what to do, if I Don't come clean, there's a chance the vat man will see clearly the money introduced into my bank account, but would they not think it's just a loan which gets paid off by monthly instalments like most loans or, are they aware of these kind of loans giving by merchant credit card companies and their system they use of daily repayments on each credit card charge.I have read that I could disclosed my mistake but I feel after I already made one error and now a second error they may throw the book at me. Or Should I say nothing and hope they don't notice my error and if they do discover my error then I could explain the mistake
Submitted: 4 months ago.
Category: Law
Expert:  Ash replied 4 months ago.

Hello my name is ***** ***** I will help you.

How much have you under declared please?

Customer: replied 4 months ago.
I think about £13,000
Expert:  Ash replied 4 months ago.

Ok, you should come clean. This is because the chances are when they have your returns and accounts they will spot easy had been done.

If you own up to it now, then you are likely to only have to back pay vat.

If you don't own up to it then you are likely to have to pay a penalty and interest. You also risk being prosecuted as you know the returns are not correct.

Can I clairfy anything for you about this today please ?

Customer: replied 4 months ago.
If I owe up to it, I read they would then go back 4 years and they may find other issues, my next question which is connected.
The restaurant is actually two shops together, 8 and 9. and I have just sold number 9, the half of the shop which was Reg for Vat, and I have moved the full business into the number 8 shop, I was in the process of informing the vat that I have moved next door but my accountant suggested that I should hold back on this and he suggested I open up a new company as the old company was for the other shop. I know I won't be able to liquidate the company as its now under investigation with the vat issue. My question is what if, the vat bill wants too much money and I can not pay it, I believe they will wound up the company, but the company will be unused and any assets have gone. My final question will they come to me personally
Expert:  Ash replied 4 months ago.

No, they can't come after you personally.

If you don't own up and they find out the penalties could be more and they could prosecute

Does that clairfy?

Customer: replied 4 months ago.
Sorry did you read my last questions
Customer: replied 4 months ago.
I will own up but I am just worried they will go back 4 years and end up with more penalties. And I will try to pay. But if I have agreed to pay then they can not prosecute, but what would happen if they cannot recover the money
Expert:  Ash replied 4 months ago.

If they can't recover the money from the Ltd company they won't go after you personally.

Does that clairfy?

Customer: replied 4 months ago.
think that answers the question but if I could just ask one last question.Could they come after me because I have not told them that I am about to stop trading the ltd company, am I not legally bound to tell them while I am under this investigation
Expert:  Ash replied 4 months ago.

You are legally required to notify all creditors.

But they can only oppose any dissolution rather than come after you personally.

Does that clairfy?

Ash, Solicitor
Category: Law
Satisfied Customers: 10915
Experience: Solicitor with 5+ years experience
Ash and other Law Specialists are ready to help you
Customer: replied 4 months ago.
Thank you

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