Clean It Up
UK Window Cleaning Forum => Window Cleaning Forum => Topic started by: redstarwindowcleaners on March 29, 2014, 06:06:21 pm
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Got a letter last week from hmrc sent to me and my accountant
apparently I've once again be plucked from the hat and they are carrying out a check on my accounts from last year
Even thou I pay 20 % on a monthly basis so i dont get a big bill
After deducting expenses etc i always get a tax refund
The devious basards reckon i owe them £600 quid
I'm sure I'm getting fisted by them
waiting to see what the accountant comes up with
you try to do things right and still get fisted
Think i get myself a mondeo a nice shellsuit and sign on And have a claim up
And pocket everything I earn on the quite
what's the point in trying to be honest
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Got a letter last week from hmrc sent to me and my accountant
apparently I've once again be plucked from the hat and they are carrying out a check on my accounts from last year
Even thou I pay 20 % on a monthly basis so i dont get a big bill
After deducting expenses etc i always get a tax refund
The devious basards reckon i owe them £600 quid
I'm sure I'm getting fisted by them
waiting to see what the accountant comes up with
you try to do things right and still get buggered
i think i get myself a mondeo a nice shellsuit and sign on And have a claim up
And pocket everything I earn on the quite
what's the point in trying to be honest
Probably a bill similar to the £600 that the HMRC want!
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It is my understanding that an investigation is never random.
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Tax is beyond me i dont think I'll ever understand it
they also gave me a number if I want to ring them and give them any info in their investigation against me !
I can't believe these people !
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It is my understanding that an investigation is never random.
im hardly a multi national
Im A one man band
it's probably cost more than 600 quid in their time
that's if I owe them anything
i can't see how i do
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Many the hmrc read your post about selling chinese poles to friends ;D
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It is my understanding that an investigation is never random.
im hardly a multi national
Im A one man band
it's probably cost more than 600 quid in their time
that's if I owe them anything
i can't see how i do
http://www.hmrc.gov.uk/agents/compliance/enquiries.htm
Generally something will have triggered a check. For example, when figures entered on a return appear to be wrong. Another example is when a very small business suddenly makes a very large claim for VAT, or one with a large turnover declares a very small amount of tax. The only way HMRC can find out whether the return is correct is by carrying out a check.
Perhaps your accountant is making mistakes?
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I was going to ask the same - is there anything that could trigger it? New van, drop in income or anything?
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I believe that if you keep meticulous accounts and don't cheat then you should be ok.
Every penny in recorded and paperwork to support every penny spent on allowable expenses. The better, neater and more comprehensive your accounts are, the less the HMRC have grounds to accuse you of dishonesty or even innocent mistakes.
If you do that there shouldn't ever be a problem. In close on 50 years self employment I've never had an investigation, but if I did I know everything is above board and the Revenue wouldn't be able to find anything amiss.
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I was going to ask the same - is there anything that could trigger it? New van, drop in income or anything?
brought a van and new equipment this year but it's not a massive amount of cash Involved
if it's only £600 quid difference between what my accountant has filed and what they think the figures should be
theres not a great difference
my issue is if I'm paying 20 %
Why do I still owe
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Ah right. Not a tax investigation just a discrepancy. Nothing to worry about then. You could phone and ask them. Normally it's because you've earn't more than predicted. Probably just alter your code for next year.
Could be a number of reasons - maybe you had too high a rebate last year.
I remember getting shafted after my first year trading - forgot the double whammy of payment on account - where you pay tax twice in the same year - half of next years predicted tax.
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I'm sure it'll sort it self out
they also make mistakes
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Many the hmrc read your post about selling chinese poles to friends ;D
Ain't sold any yet
still waiting for them to arrive
think they're coming on a Malaysian airlines flight !
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Can I ask why you are paying 20% on a monthly basis?
Is that a voluntary thing?
The only time I ever paid 20% upfront was when I was under the CIS in another trade.
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Voluntary
pay a % of earnings monthly saves getting a lump sum demand every year
Works ok for me
20 % usually covers plus a little bit
as you said
I also used to be cis and just got used to losing that % every month then getting a rebate once a year usually paid Xmas with it
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Yes I can see your logic in the way you are making voluntary payments.
Considering that you are also using an accountant im surprised they are calling you out.
As you say it could be an error on their behalf, hope you get it sorted.
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Tax isn't that hard you pay 20% on earnings after £10000 from April anything you earn over £31.866 you pay
40%
Expenses are anything that's leaves you with no capital gain like fuel for your van, insurance and so on.
So if these come to £3000 then you don't pay any taxes until you earn £13000.
Then you have expenses that will leave you with a capital gain like a van and equipment for these you can claim
a certain amount.
There's no need for an accountant unless your earning big money or crap at maths.
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Tax isn't that hard you pay 20% on earnings after £10000 from April anything you earn over £31.866 you pay
40%
Expenses are anything that's leaves you with no capital gain like fuel for your van, insurance and so on.
So if these come to £3000 then you don't pay any taxes until you earn £13000.
Then you have expenses that will leave you with a capital gain like a van and equipment for these you can claim
a certain amount.
There's no need for an accountant unless your earning big money or crap at maths.
You can claim the full amount for equipment and vans if they are bought wholly for the use of your business.
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Tax isn't that hard you pay 20% on earnings after £10000 from April anything you earn over £31.866 you pay
40%
Expenses are anything that's leaves you with no capital gain like fuel for your van, insurance and so on.
So if these come to £3000 then you don't pay any taxes until you earn £13000.
Then you have expenses that will leave you with a capital gain like a van and equipment for these you can claim
a certain amount.
There's no need for an accountant unless your earning big money or crap at maths.
i tried to do it once myself when was limited in a different industry and was presented with a 15500 tax bill over what I was due to pay cos I filled in the wrong figures
wasted my time trying to save money
in the end went back to the accountant who sorted it for me
for the sake of £300 it worth it to me
i think his fee is a expense anyway so I get a bit back
if a situation arises like this hmrc deal direct with him as he has been nominated by me and they write to me as well
i know what I've gave him is fair and honest so hopefully he'll sort it next week
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I can't see how hrmc knows you owe 600 quid when tax year doesn't finish until April 5th for sole traders . Have you upset anyone recently and they have rang up hmrc to drop you in it?
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I can't see how hrmc knows you owe 600 quid when tax year doesn't finish until April 5th for sole traders . Have you upset anyone recently and they have rang up hmrc to drop you in it?
it's from last year 2012 / 13
What I don't understand is they gave me a rebate last year of almost 1750 now they want 600 back
Government tossers
I'll put my return in beginning of April I generally get a rebate July august
3 / 4 months to process my rebate
yet I've had 2 X letters this week telling me to cough up straight away highlighting the different ways I can pay
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I wouldn't worry too much mate, if you've been accurate with your accounts & your accountant has done his job then everything should be ok. It seems there must be a difference between what your accountant has submitted & what HMRC calculate you owe. Even if this is the case, your accountant could still be correct, doesn't mean the HMRC are right in their calculations.
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My mate has just been given a 4 grand bill due to issues with his company car and his paye
cost him £100 consulting a accountant hmrc made a mistake he owed nothing
how many people just pay up without questioning whether it right or wrong
They are always on about unpaid tax and what it costs the uk
how much is stolen from inoccent taxpayers every year
bet thoes figures ain't published !
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HMRC do like to try and bully sole traders and small businesess. Don't fall for it, stick to your guns find out where the discrepancy is and don't let them get into your head. You are an easy target for them.
I have been dealing with a £15k liability due to the exact same circumstances as you with hmrc since 2007 and trust me they like to try to make you worry, I have been paying them back what I can and will prob contunie to do so for the next 10 years feel like i'm chasing my tail sometimes (with all the additional liabilities that have been added since). But I am paying them, and I will get back on top eventually, its this that drives me forward so good comes out of it.
It all came to a head last year, they sent someone round to me who was very persistant and serious, I politely invited him in, offered him a cup of tea and told him you got two options, make me bankrupt, and get nothing (which is fine by me as you become tax exempt during this time) or let me keep paying; and stop trying to intimidate me as it wont work. He left with tail behind legs agreeing that there isn't and awful lot that can be done and they are just going to have to accept my offer. he did say that there was still that risk of being declared Bankrupt by them, but I said OK whatever, but you cant stop me from working or continuing to grow my business if you do can you? No he said, and you cant prevent me from paying my bills or providing for my family, 'No' he said, in fact I said if you do make me bankrupt you loose out and I gain a lot by not having to pay back what I owe you, ' That's right' he said so where is the sense in it? I said. If I have a business that is growning and making money year on year, and I am offering you what I can to pay back arrears, and increasing that amount as the business develops, im doing everything I can in my powers to prove that I am not avoiding payment. he then clicked on his PDA and noticed the £400 payment I made to him last 3 days ago had arrived in their acc, and I had just done another £100 on that day too. He had another cuppa and left.
Remember they are people, just doing their job. Don't loose your cool with them, be polite and coprative. It wont do you any favors being any other way.
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Good luck mate
i just find them hard work dealing with
they prey on our limited understanding on how things work
and they assume you in the wrong from day 1
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Anyway I'm off out to do some cash in hand work to get my 600 quid back !
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Anyway I'm off out to do some cash in hand work to get my 600 quid back !
TAX-MAN.
Someone call the TAX-MAN!!
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I can't see how hrmc knows you owe 600 quid when tax year doesn't finish until April 5th for sole traders . Have you upset anyone recently and they have rang up hmrc to drop you in it?
it's from last year 2012 / 13
What I don't understand is they gave me a rebate last year of almost 1750 now they want 600 back
Government tossers
I'll put my return in beginning of April I generally get a rebate July august
3 / 4 months to process my rebate
yet I've had 2 X letters this week telling me to cough up straight away highlighting the different ways I can pay
Im confused with this thread. So to be clear you havnt been plucked from a hat and they are not inspecting you or going through your accounts. They just think you need to pay an additional £600 and have written a couple of times? Is that what your saying?
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The letter basically said I owe 600 quid from year end 2012 /13
After They have carried out a random check on returns submitted
So they wrote to both me and my accountant
They think there is a 3g plus discrepancy of which I owe around 600 in tax
talking to the accountant its not from cleaning windows I also carry out works via a recruitment agency I've done work for over a period of time related to another industry
there seems to be a difference somewhere between the two by this I presume he means what the agency and my accountant have both submitted
I still don't really understand why as the tax I pay on this work is taken at source so even if my man has made a mistake the tax has still been paid already
I'm sure he'll sort it
if not I'm sure they'll take it out of this year's rebate
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Don't think hmrc are really up to date with things, they're in pretty bad shape, you may even end with another rebate. They really don't have a clue.