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| *Loan,banking and credit>>>tax return |
Tax returns/ tax bill? |
Can anyone help? I am a self employed joiner who hasn't completed any tax returns for the last three financial years. I sub contract to companies, who when they pay me deduct tax at the normal rate. At the end of each month I receive a CIS voucher to proove how much tax I have paid. My problem is that I have just received two estimated tax bills for a total of 拢6000 for two of the previous tax years. I have gave all of my receipts and CIS vouchers for the last three years to an accountant who is currently doing my tax returns for me. My question is this because these are estimated bills and that my tax returns are being worked on at the moment (I have paid taxes (CIS vouchers)) Am I still liable for these bills? Am i screwed? or will this all go away when my tax returns are complete? please if anyone has some experience in these matters could you please give me some good news Thanks The only immediate problem here is that the Revenue will keep chasing you until your actual tax returns have been filed and processed. They normally put high figures in to prompt you to contact them and do something about it. once the tax returned have been filed and processed, the tax will be recalculated to the actual amounts due. the next problem is that once the correct tax has been calculated, the Revenue will most likely fine you 拢100 for each late tax return and then could charge interest on the amounts due at 5% payble end of feb each year and end of august each year. when you say you didnt complete any tax returns, was this because you didnt register self employed when you started or did you just ignore the forms? If you didnt register, they may also charge you 拢100 for not notifying them within 3 months of starting. another problem is class 2 National Insurance. were you paying any? if not then they will back date this to your offical start date which could be a couple of 拢100's as its about 拢2.10 a week until current year which is 拢2.20 a week. the quicker your accountant gets the forms th easier it will be. they should handle all the charges and fines and make sure they are correct and then you will have to find a way to get em all paid. good news is, if your tax bill is quite high and you cant afford to pay in one go, you may be able to negotiate a repayment plan, but this will most likey be over a 6 month period. 12 if your lucky. one last note......your tax bill shouldnt be anywhere near 拢6000 as your tax deducted on the CIS vouchers should be 18% (or 20% depending on how far they go back) and taking your expenses into account, you may find that there is little to pay. but this all depends on what expenses and other tax deductable items your accountant claims for. who know, you may be due a refund and all charges and fines etc.. wont be due. good luck! Source(s): accountant for 11 years dealing with self assessment, CIS and personal tax. I cannot answer the above query from experience but here is a fact...............The Tax people are always right until proved otherwise.........This is not a dig at the tax people, it is a fact........Any decision however is always open to appeal if you think or can prove they are wrong........They are very fair in this matter and disputes can be corrected over periods of years. Dont worry if your accountant is a good one he will sort it all out for you it wont go away but your financial circumstances are in the best of hands I am dealing with CIS voucher tax claims every week - and I say DON'T PANIC. You will find that you may have to pay a nominal fee in tax, and this will be paid over the year, but what is more likely, if your accountant is worth his salt, you won't have to pay any taxes. Infact, you will probably find that you are due a rebate. Your accoutant will take into account any expenses that you had in the appropriate tax year. These include the following; all car expenses phone charges use of home travel & subsitance charity donations heating rent & rates repairs and renewals subscriptions public and liability insurances not forgeting any tools that you have bought for your trade, your computer and your car, and any fixture and fittings. It shouldn't take your accountant too long to do this for you (he/she should be turning it around in a week). The only way that this bill can be cancelled is by submission of your Tax returns, so you will just have to wait until the accountant does them. You cannot appeal - only the completed returns will overturn these assessments. I would hope your accountant will be liasing with HMRC to let them know the Returns are on their way. Ex Inspector of Taxes |
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