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Sam
Sam, Accountant
Category: Tax
Satisfied Customers: 13777
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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Im behind on my tax , i trade the markets and loss substantial

Resolved Question:

im behind on my tax , i trade the markets and loss substantial monies so to stay in business i delayed my tax returns. i owe ,125k for 2013 ,125 k for 2014 and 2015 should be getting done now. whats my current exposure with penalties to get up to date .
Submitted: 1 year ago.
Category: Tax
Expert:  Sam replied 1 year ago.
Hi Thanks for your question You will have £100 penalty for each late tax return plus surcharges and late interest ad penalties on payments and daily penalties on the tax return and late tax paid - and if you actually owe £125 K in tax (rather then this being the profits) then you will up to a further £50,000 with all charges If this was the income so the actual amount owed in taxes was less then you will owe approx a further £30,000 in charges HMRC have a calculator - here on the link for you to fine tune the positionhttp://www.hmrc.gov.uk/gds/campaigns/19years-calc-stub.htm Do let me know if I can assist you further Thanks Sam Thanks Sam
Customer: replied 1 year ago.
so can you give me an approximate sum for the whole period state din my question owe 125 each year
Expert:  Sam replied 1 year ago.
Hi I have done The £50,000 if the tax owed was £125000 a year Thanks Sam
Customer: replied 1 year ago.
so if i submit my tax return today i will have to pay 300k ?
Expert:  Sam replied 1 year ago.
Hi Based on the fact you also owe for 2015 - and I used the £125,000 tax owed here too - then you will owe £375 taxes and a further £50K in penalties and interest - but this works on a penalty rate of 10% - and depending on why you are late could be more than this Let me know if the amount owed for 2015 is a profit (and if so what amount) or a loss ThanksSam
Customer: replied 1 year ago.
2015 will be approx 250k gross profit maybe a little less.
Expert:  Sam replied 1 year ago.
Hi Thanks for your response And on that what is your total liability? Thanks Sam
Customer: replied 1 year ago.
i suppose about 120k
Expert:  Sam replied 1 year ago.
Hi Then the reworked position (baaed on 10% penalty charge) and owed taxes would be a total of £423,409 )based on 10% penalty charge) and if £53409 would apply to penalties (which I did advise approx £50,000) but this is based on the fact the payment is made today so will grow furtehr as each day passes) and this is the top end figure you will owe for late returns and payments - so could be less Thanks Sam
Customer: replied 1 year ago.
ok that makes sense ,and if i pay end of march what difference can i expect
Customer: replied 1 year ago.
also if i draw down my pension pot , is higher rate tax deducted at source or when i submit tax return
Expert:  Sam replied 1 year ago.
Hi Thanks for your furtehr question Then this will work out at most £425,852 less taxes £370,000 = £55852 As you pension pot is now a new question - I will have to offer additional Q & A time OR you list this as new question - let me know which you would prefer Thanks Sam
Customer: replied 1 year ago.
what ever is easier
Expert:  Sam replied 1 year ago.
Hi I have sent an additional services request as then it will keep all the info contain in this one question thread for you But can you advise how much of the pension pot you will down draw onAlso your age Thanks Sam
Sam, Accountant
Category: Tax
Satisfied Customers: 13777
Experience: 26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
Sam and 2 other Tax Specialists are ready to help you
Customer: replied 1 year ago.
ok regarding the tax ,there is no additional amount to pay as its now March 2016 .i.e the amount is as above approximately ?At what point are there more monies to be paid on account?
Expert:  Sam replied 1 year ago.
Hi Can you accept the question and additional Q & A request - w can then continue with both topics until you are fully furnished with complete answers Thanks Sam
Customer: replied 1 year ago.
my pension pot is approximately 350k
Expert:  Sam replied 1 year ago.
Hi
Thanks for your response and accept
There is additional penalties due - as if you paid now I advised £53409 penalties due on top of the taxes, and if you did not pay until March then on top of the taxes you would have an additional £55852 due
So its the penalties and interest that have increased not the tax owed themselves which still remain at £370,00
Then the pension pot - is this 100% downdraw and what is your age
Thanks
Sam
Customer: replied 1 year ago.
re tax normally you pay money on account ,ie 50 % of what they expect 2 times a year ,when is the next portion due.im 61 and ye si thinking of using the pot to put against taxes as it provides a negligible pension
Expert:  Sam replied 1 year ago.
Hi Thanks for your question Payments on account arise re the payment that arose 2015 (you think approx £120K) - so an additional £60K 31/01/2016 due and then another £60,000 due 31/07/2016 - If you feel your liability for 2016 (for the period 05/04/2015 to 05/04/2016) will be less, than you have the right to request a reduction of payments on account - but do not use this to "save" money as if any reduction p[roves not to be so - then interest is added on again! re the pension pot as only 25% of it can be down drawn tax free - then the remining 75% ( £262,500) will be liable to tax.The pension company can only apply emergency tax - so 20% - and you will owe an additional 25-30% to HMRC (as you are a 45% - 50% taxpayer) via your self assessment tax return - this will amount to between £49218.75 (at 25%) or £59062.50 (30%) So from the £350,000 the pension company will charge you £52500 (giving you 297,500 in your hand) You then will owe a further £49218.75 - £59062.50 - which will man from the pension put of £35,000 you actually benefit from between £248281.25 and £238437.50 Thanks Sam
Customer: replied 1 year ago.
so does that mean the tax liability in February will be 425k plus 60k ?
Expert:  Sam replied 1 year ago.
Hi Thanks for your response Yes IF you stay trading and will achieve profits at the same rate (if more profits- then this just gets included as an end of year (for 05/04/2016) balancing payment If the profits are less then you do have the right to ask for a reduction of that £60K which forms the 1st payment on account due at 31/01/2016 Thanks Sam
Customer: replied 1 year ago.
so in conclusion submitting a tax return in February will raise an immediate invoice in the region of 485k??
Expert:  Sam replied 1 year ago.
Hi Thanks for your response If you submit 2013 2014 and 2015 together and the amounts you advise you owe are reasonable accurate AND you leave down drawing your pension until after 05/04/2016 - then yes - that is the max that will be due/arise combined with taxes, penalties (if charged at 10%) and interest. Thanks Sam
Customer: replied 1 year ago.
ok thank you .
Expert:  Sam replied 1 year ago.
Hi You are welcome, and do come back to Just Answer if you need any more asistance - and you can alays ask for me Sam if you would like Thanks Sam

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