Figuring out how to pay overdue income tax is a more common problem that many people believe. There are many people who set out as self employed (especially in times of recession and redundancies) and find it a struggle to keep up with all of the paperwork. They often mean to register for tax and then do not quite get round to it as looking after a new business takes a lot of time and effort. Year two will then pass (with the best intentions of registering to pay tax but never quite getting round to it due to other pressures).
The individual then often becomes frightened and believes that if they go to the tax man they will get thrown in jail. They then spend the next few years dreading the brown envelope from the tax man hitting their doorstep. HMRC recognise that there are many people in what they call the Hidden Economy and have a number of "Hidden Economy Teams" around the country who's sole aim is to bring people back into the tax system.
Prosecutions for this type of offence are very rare and if a person voluntarily comes forward to HMRC to disclose untaxed income for a number of years HMRC normally will accept a settlement to include tax, interest and a penalty.
A problem for many individuals is that business records have not been maintained for the whole of the period. Although this makes the task of preparing the figures more difficult this is not impossible, especially if your advisor has experience of reconstructing past information and estimates.
The main cost, in most instances, of getting back into the system for tax purposes is a financial one. It can be done and once most people have started the process, as long as they have the right guidance and advice they often feel much happier.
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"We understand that people sometimes make mistakes in their dealings with HMRC and that HMRC make mistakes in dealing with taxpayers. Many people do not know how to deal with HMRC or who to turn to for help resolve the tax dispute.
Our firm of tax advisors specialise in resolving people's problems with HMRC. We have extensive expertise in dealing with all forms of tax investigations and tax disputes as well as with taking matters to the Tax Tribunal where agreement cannot be reached.
We deal both directly with the individual who is under enquiry and also work with many firms of accountants supporting them in dealing with HMRC disputes and advising them on how to handle HRMC to get the best result.
The fact is that proper management of HMRC is the best way of reducing the tax, interest and penalty as well as the time taken in resolving any tax dispute.
Our expert team are none judgemental and rigorously defend your position within the scope and parameter of the law. We take control and manage the process to minimise the interruptions that any form of tax investigation causes to an individual's life and business."