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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 3109
Experience:  FCCA FCMA CGMA ACIS
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I would like a confidential chat about Tax and the best

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Hello, I would like a confidential chat about Tax and the best way forward, I havent filed any returns or NI for the last few years, I contract and had my last company struck off because I didnt change my address so I started another company and I am so behind in my tax payments that I have buried my head in the sand. I am about to emigrate to start a new life and start off on a good foot with my affairs but I fear being prosecuted. I spent a lot of money saving my parents house from going to a life mortgage shark because of a family members debt and I have been so kind in helping others financially that I have neglected myself completely. I have saved up enough tax for this years returns but it is the other years I haven't and so I am in a real hole. New rules this year mean a disclosure to HMRC for contractors including NI number and my work will end in a month then I should be flying away. Any help would be appreciated.
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.
Hello, I am Keith, one of the experts on Just Answer, and happy to help you with your question.
Firstly, when you quit these shores for good do not forget to fill in and file a form P85 with HMRC. On receipt they will class you as non resident for the tax year after your date of departure and furthermore split the leaving year into two portions, one resident and the other non resident.
Now are you concerned about your companies Corporation Tax returns or your personal tax ditto or both? Furthermore, how were you remunerated by the companies if at all?
Customer: replied 1 year ago.

Hello Keith, nice to meet you. Ok doke I will file a P85 like you say. Its more my personal returns, I have never received one and my company returns are stated as zero. I was remunerated by the agency I have worked for so money going into my company account and then out to me, nothing was ever saved in there so its all personal. I fear that if I submit a return with the tax I saved that I will be questioned about the other 3 years where there isn't any return. I worry about jail or big fines or prosecution etc and my plan to emigrate and start afresh i.e with paying tax and never having to live in fear again. I am not a bad person I have just stuck my head in the sand.

Expert:  bigduckontax replied 1 year ago.
Hello ostrich!
Did the agency operate PAYE for your remuneration? It would appear not. If you were a director of your company then any remuneration paid to you must be made under PAYE arrangements.
You are unlikely to face jail, but it looks to me as though you are going to have to deal with HMRC where leniency is in very short supply. If your remuneration in any one tax year exceeded 2.5K then you should have been making annual self assessment year returns particularly if you have been in receipt of income not taxed at source. You are likely to have to pay interest on unpaid tax and furthermore be penalised for not making returns.
Would you like to elaborate further?
Customer: replied 1 year ago.

:-) I am an ostrich,

No the agency haven't paid PAYE they just pay the gross and leave it to me to sort out.

Well since my company has been running from 2012 I haven't filed anything and I have had an average of £55k a year since then in gross income. I would have paid it from 2012 but my brother borrowed £32k for his family for a move abroad and she has worked in a factory for 37 years and was going to lose her house as she was using an unsecured flexi loan which I paid and they borrowed from so its been quite a mess. Now she can retire without worry and I have to face the music! so would it mean 3 years of returns or just 1?

Expert:  bigduckontax replied 1 year ago.
What you will have to do now is to contact your tax office and request the forms needed (SA100s for the relevant years) to enable you to make returns for the missing tax periods. Fortunately for 14/15 you are well within time for this as they do not have to be in on paper for some months yet.
You have a substantial undeclared income, which after your personal allowance of say 10K would leave you with about 45K which will put you into the higher tax bracket for a proportion of that. The loans to your family I regret are an irrelevance in this matter.
You will have to make a return for each and every tax year in which your remuneration exceeded 2.5K. I warn you now that HMRC will not be over pleased with what has happened, but at least you will be showing willing by making returns.
Basically now it is over to you to get in touch with your tax office to obtain the necessary forms for completion. In due course you will have to pay the tax outstanding plus interest and maybe penalties.
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 3109
Experience: FCCA FCMA CGMA ACIS
bigduckontax and 2 other Tax Specialists are ready to help you
Expert:  bigduckontax replied 1 year ago.
Thank you for your excellent support.
Now prepare for grovel time with your tax office!

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