MegaSack DRAW - This year's winner is user - rgwb
We will be in touch
I have an old PAYE debt from 2006 for a man I employed, back then my accountant sorted all my wages and I filled in the cheques.
Its a fair old ammount, and I was totally unaware it had been missed. Before and after are fine.
Inland revenue informed me in December 2009, at that time I had just hit big trouble and couldn't pay. I wrote to them to explain and to say I would have to sort it out later.
As of today I've not heard a thing, and I have just become employed and winding up what is to all intents and purposes a failed business.
Thing is do I ignore it or attempt to pay it. Previously my new accountant has said to leave it.
If HMRC have written to you about the debt & you agree that the amount is due, then it will be on your record & interest on the late payment will be accruing.
As you asked for time to pay then you should really settle up. You might want to contact HMRC & ask them how much you now owe, they might have written the amount off - then again they might not.
The liability remains yours assuming you were a sole trader but you in turn can sue your accountant if they are at fault but you will only be able to reclaim additional expenses involved in settling this such as the fees from another accountant and interest charged by HMRC.
The accountant is your agent acting on your behalf. If you had a limited company and it's been wound up then ignore it. Again this is why you need GOOD accountants and not the just the cheapest.
My old accountant passed away. She would prepare the books and in the case of tax she would present me with a payment slip and I'd write a cheque and carry on with my business.
When I spoke to the inland revenue, they said I owe it because I earnt the money, which I did on paper, but in actual fact I never was paid and made a loss.
I think I'll come clean with them.
If you were never paid it should have been written off in your accounts in that year or the next so tax should have been payable on your actual profits.
If you were making losses then there wouldn't be a tax liability. Profits on paper are what you are what your taxes are calculated but they should take into account your bad debts. If you made a profit on paper you [i]had[/i] made the profit. Your statement
doesn't make sense.I earnt the money, which I did on paper, but in actual fact I never was paid and made a loss.
You will have to prove one way or the other what your position was when HMRC say the tax liability was or rollover and pay it.
as above if you invoiced but were never paid there should be no liability - this may be why your new accountant has said not to worry about it.
My old accountant passed away.
Freak accident?
Freak accident
Well lets just say I don't have any enemies......living 8).
You said this was a PAYE debt then presumably it was Tax & NI you deducted or should have deducted from the guys pay & you forgot/didn't pay over to HMRC.
If this was the case then this has nothing to do with earned income included in your accounts & any subsequent profit/loss.
Give HMRC a ring & see what they say. If it's due then better to pay up now rather than rack up more interest.