Thank you Keith
Firstly, I am paying tax on my pension, so allowances won't help. I did not cash a cheque from hmrc when they messed up when I retired, so maybe they will allow this 300 pounds in my favour.
I think I can remember which online activities brought in the odd payment but not when. Most of my losses were through failed ads or buying into online activities that were not followed up. If all the income from all the capers including receipts for gardening were added up, they would total less than 3000 pounds over maybe ten years without deducting costs/expenses. By outcome I know that I was a real loser. I stopped all activities maybe 4 years ago and regret ever starting.
I know that the self employment bit is a valid point but I did not know that this was necessary until I made profits. No excuse I know.
I want to sleep again, so what should I do, and what penalties would you envisage.
Ok Keith all gloom and doom, but surely they cannot get too harsh on possibly 2000 pounds before costs and expenses over maybe ten years.
I understand you suggest voluntary admission to hmrc, but surely waiting for them to contact me, or not as the case maybe, would result in the same course of action, and time to sort it.
Have I been careless? Yes. Have I been negligent? Yes. Have I been naive? Yes. Have I deliberately tried to evade and cover up tax fraud? No.
Surely I would also do better briefing an expert, perhaps an ex hmrc inspector to deal with hmrc on my behalf.
I also asked please Keith, what the total max penalties will be. Ball park figures will do.
What difference will it make if I wait for hmrc to catch up with me? Why would they decide to look back all those years ago?
I would happily pay hmrc this amount to close the case, but I didn't keep any records. Would they accept estimates?
The tax office concerned? Are you suggesting using the local tax office or hmrc headquarters?
Also please, how else can I or they establish any details?
The tax office to which you make your tax returns. It will be the one who issues you with your tax coding. Give them your tax reference;
it will be on correspondence, notices of codings etc sent to you by your tax office.
Sorry Keith still more: ok I contact them, tell them what I've done, offer them 5k to settle penalties and give them some idea of earnings before expenses?
Yes, effectively making a declaration. Of course they are quite likely to ask you to undertake formal assessment or amend one which has already been submitted.
What would a declaration contain? What is involved in a formal assessment?
Clearly my pension is paid through Paye and my income from dividends is taxed at source or declared through self assessment if untaxed foreign income.
So, the declaration would simply be a statement to say that during years .........I received approx....... income from say herbalife, and that my expenses/costs mean that I owe ......... or do not owe tax on a profit of.....Also admitting to have failed to apply for self employment or register a new biz, accepting penalties likely to apply and then offering say 5k to close?
Surely as an expert you can advise me on what to do for the best? Clearly, if this would simply anger hmrc and incline them to be as nasty as possible, if it's not the way to go you should be able to tell me. If hmrc want to trawl through 10 years of mixed up personal bank accounts it would take forever to get anywhere near accuracy. I am quite happy to exaggerate income, ignore costs pay the tax and the fines. I just want it sorted asap
Come clean is what I stated 2 emails ago, as I said, based on best guesses. Is this the way to go?
I know that you won't predict hmrc response or the outcome, but if I offer 5000 to settle after outlining the penalties expected, or will they simply assume there is more to hide? Would I be better off suggesting that they propose a figure?
Keith you are very helpful and these will be my last questions.
Is there anywhere online I can see the format of a good declaration?
Is there an official hmrc form to download?
How long is the whole process likely to last? I cannot cope with the hell that Harry Rednapp went through.
The previous expert has decided to opt out.
After reading through your interaction I would like to suggest that you make a complete declaration and as soon as possible.
You first need to seek a local tax professional because you will need to start at the local tax office.
If you have undeclared income, you have broken the law and, from HMRC’s point of view, are guilty of tax evasion.
This means that HMRC can prosecute, but will normally only do so in cases which involve fraud or false accounting.
When you have substantial undeclared trading income over many years you should take the first steps and approach a local tax office.
The tax office will pass your case to an inspector. The inspector will also normally want tax returns completed for all the years concerned. This is why you will want professional assistance.
Once this is all completed the tax will be expected to be paid. If you cannot pay HMRC may allow you to pay on time.
You asked for an official form or example. The form is the tax return completed. If you disclose your income (by completing returns for the years in question) and cooperate fully with the investigation or enquiry that will follow, this should help to reduce any penalties payable.
As to how long the process will take, that is not possible to know.