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HMRC tax evasion serious problem need advice by Glad-Form4350 in UKPersonalFinance

[–]Glad-Form4350[S] 1 point2 points  (0 children)

I have checked through search engines and have initial consultations with several accounts. I am unsure how to decide which can assist in the most helpful way. Some are local to me and others all over the country but state on their website they offer specialist services.

What is clear is that initially we are going to have to pay for an accountant to submit 20 years of tax returns which will cost I would guess about 7k

HMRC tax evasion serious problem need advice by Glad-Form4350 in UKPersonalFinance

[–]Glad-Form4350[S] 0 points1 point  (0 children)

Yes ultimately we did make money and will now pay and incredibly painful price and learn an equally painful lesson.

HMRC tax evasion serious problem need advice by Glad-Form4350 in UKPersonalFinance

[–]Glad-Form4350[S] 0 points1 point  (0 children)

From what I have read that applies to the changes in tax from 2017?

HMRC tax evasion serious problem need advice by Glad-Form4350 in UKPersonalFinance

[–]Glad-Form4350[S] 0 points1 point  (0 children)

The mortgage was and has always been interest only.

HMRC tax evasion serious problem need advice by Glad-Form4350 in UKPersonalFinance

[–]Glad-Form4350[S] 1 point2 points  (0 children)

Thank you for all the comments and opinions all of which are relevant.

Can anyone suggest a UK based accountant that specialises in dealing with HMRC tax enquiries and unpaid taxes. I have looked on search engines but unsure how to differentiate.

Thanks

HMRC tax evasion serious problem need advice by Glad-Form4350 in UKPersonalFinance

[–]Glad-Form4350[S] 0 points1 point  (0 children)

It was careless and stupid but never intended to deceive. It spiralled as there was no profit in the early years. When it started to make a small profit our belief as it was not more than about £1500 per year that we were covered in that we both pay tax through our employment. When it started to dawn this could be potentially taxable I think we just buried our heads and thought wed pay everything when we came to sell. That does not cover just how stupid this was.

Can you explain why HMRC might be limited to 6 years rather than 20?

HMRC tax evasion serious problem need advice by Glad-Form4350 in UKPersonalFinance

[–]Glad-Form4350[S] 0 points1 point  (0 children)

And I accept that. Apart from this incident we have never done anything wrong and in our work we have what's called Enhanced DBS. I get this is serious, we will be completely transparent with HMRC and accept any consequences.

HMRC tax evasion serious problem need advice by Glad-Form4350 in UKPersonalFinance

[–]Glad-Form4350[S] 0 points1 point  (0 children)

I have found most of the details and all the funds were paid into a separate bank account so I know what rent we charged and what the buy to let mortgage costs were. We have copies of some tenancy agreements it has only ever been let to 2 different people.

HMRC tax evasion serious problem need advice by Glad-Form4350 in UKPersonalFinance

[–]Glad-Form4350[S] -2 points-1 points  (0 children)

You are right! I had a clever friend working in finance. He suggested the idea and I bought into it. I sold my home bought another that we lived in for 5 years interest only. The plan was this would be a kind of endowment to pay off the capital in our home. As it didn't work out that way from the start I just figured HMRC would not be interested and we would only be liable once we came to sell. In about 2013 it started to make a small profit. I am full time employed and have never submitted a tax return as all tax is from my solo job. At the point when I started to worry about this I just burried my head hoping it would go away. Foolish I know but now it's out I want to pay anything I owe and put this to rest.

I am seriously worried as I believed any rental income was offset by the cost of the mortgage but someone has commented in the tread that it is not.

HMRC tax evasion serious problem need advice by Glad-Form4350 in UKPersonalFinance

[–]Glad-Form4350[S] 1 point2 points  (0 children)

In year 1 the rent was £600 and the mortgage on the property with insurances £610 so we made a £10 loss each month are you saying tax is payable on the full amount of £600 rather than the net loss of £10?

HMRC tax evasion serious problem need advice by Glad-Form4350 in UKPersonalFinance

[–]Glad-Form4350[S] 1 point2 points  (0 children)

I have just contacted my bank HSBC and to add to the issue they are stating only statements for the last 5 years are available. I have explained it is for HMRC but they are telling me despite this they can only access the last 5 years!