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Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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The tax man wants to take action as an error in my earnings

Customer Question

The tax man wants to take action as an error in my earnings appears to have been made. My account says I did not give them the full information. But I was not asked and I needed an operation resulting from complications from road accident. I was in constant pain and needed very strong pain killers to function.
How can I find money I never had or pay what I do not have? My bank says my finances cannot justify a loan so I do not understand how I am to pay this amount of £1200. I have paid the tax man £400 already. A payday lender wants £640 for a loan of £15 and I am not a theft.
Submitted: 3 years ago.
Category: Law
Expert:  Ash replied 3 years ago.
Alex Watts :

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

Alex Watts :

Do you accept the tax position is wrong?

Alex Watts :

Was the information declared in a self assessment return?

JACUSTOMER-dii9dko5- : no it was from my account
JACUSTOMER-dii9dko5- : I was asked for my bank statement and receipts
JACUSTOMER-dii9dko5- : I have invested £2000 of my own into the business plus £100 a month from my savings for the past 3 years
Alex Watts :

ok, but how did they know this?

Alex Watts :

Is this from a tax enquiry?

JACUSTOMER-dii9dko5- : I did sign off the accounts but I was in pain and needed a doctor the next day who commission an operation
JACUSTOMER-dii9dko5- : This a tax demand
Alex Watts :

Yes but from what.

Alex Watts :

IS this for company accounts?

JACUSTOMER-dii9dko5- : My earnings for year for a limit company I set to void such problems
Alex Watts :

Ok, I dont understand where the tax demand came from

Alex Watts :

Is this your personal tax affair account?

JACUSTOMER-dii9dko5- : No I also have a full time job
Alex Watts :

So it is not from your personal tax position?

JACUSTOMER-dii9dko5- : No this is money Pennant Inc ltd owes
Alex Watts :

Owes who?

JACUSTOMER-dii9dko5- : The tax man
Alex Watts :

Ok - lets start again.

Alex Watts :

I do not understand.

Alex Watts :

You owe the tax man personally?

JACUSTOMER-dii9dko5- : £1200 to them and £1000 to my account
JACUSTOMER-dii9dko5- : No the company does I guess but I am a 1 man band
Alex Watts :

So you have been paid £1000 into your personal account?

JACUSTOMER-dii9dko5- : The will thing has stressed me to the point of having another accident when I put my car in reverse when I intended first gear
JACUSTOMER-dii9dko5- : The whole think I mean
Alex Watts :

Ok, concentrate on one thing at a time

Alex Watts :

Have you been paid £1000 into your personal account?

JACUSTOMER-dii9dko5- : No
Alex Watts :


JACUSTOMER-dii9dko5- : I have invested my money into the business to keep it going
Alex Watts :

So who owes the money, you or the business?

JACUSTOMER-dii9dko5- : The business I guess
Alex Watts :

So the business had £1200 and the tax man wants tax on that?

JACUSTOMER-dii9dko5- : I do not know what the tax is for that is the amount of tax they say I owe for what the business has made.
JACUSTOMER-dii9dko5- : I think you might have a point they might believe that my investment was earnings
JACUSTOMER-dii9dko5- : The problem now is how do I fix things my account have absolved themselves from any blame but do nothing. I need to fix things or go under.
JACUSTOMER-dii9dko5- : The tax man has all the power and want to beat me up for not paying them their money.
JACUSTOMER-dii9dko5- : They treat me like a rick bootlegger.
JACUSTOMER-dii9dko5- : a rich bootlegger I am not
Alex Watts :

On what basis has your accountant refused to act? Does the accountant say it is correct?

JACUSTOMER-dii9dko5- : No I failed to provide tall the information, they might adjust next year. I guess they are being defensive. Thank you away for your consecration.
Alex Watts :

Ok. Have you asked HMRC what is the basis for the calculation?

Alex Watts :

Are you able to respond?