Tax backdating and owing question
Discussion
I don't have the full details but these are the details i have to hand.
A friend of mine has had HMRC on to her about some tax that she owes them from 13 years ago - In essence, in 2004 (I think it was), she's been registered as having not paid any tax.
She worked for a company who has since gone out of business who, from the sounds of it, were mishandling their pay and tax affairs - They were operating as/with an umbrella company and telling the employees they were paying tax for them while not doing so.
It seems complicated and it sounds as if she's ended up being "self employed" in the eyes of HMRC and as a result they have said they can go beyond the 6 year limit for PAYE employees.
As a result of this, they have told her she has to pay the back tax (amounting to a couple of thousand pounds) immediately and have already taken a sizable chunk from her salary leaving her in some hardship. She can't prove she genuinely believed that she did pay tax because, as it was a long time ago, she no longer has the payslips (in fact, she only got rid of them 2 years ago).
My question is this - Is this correct? Can HMRC do this over such a long period of time? Is there anything she can do about this?
Thanks
JTW
ETA - The company was called City Retail Support
A friend of mine has had HMRC on to her about some tax that she owes them from 13 years ago - In essence, in 2004 (I think it was), she's been registered as having not paid any tax.
She worked for a company who has since gone out of business who, from the sounds of it, were mishandling their pay and tax affairs - They were operating as/with an umbrella company and telling the employees they were paying tax for them while not doing so.
It seems complicated and it sounds as if she's ended up being "self employed" in the eyes of HMRC and as a result they have said they can go beyond the 6 year limit for PAYE employees.
As a result of this, they have told her she has to pay the back tax (amounting to a couple of thousand pounds) immediately and have already taken a sizable chunk from her salary leaving her in some hardship. She can't prove she genuinely believed that she did pay tax because, as it was a long time ago, she no longer has the payslips (in fact, she only got rid of them 2 years ago).
My question is this - Is this correct? Can HMRC do this over such a long period of time? Is there anything she can do about this?
Thanks
JTW
ETA - The company was called City Retail Support
Edited by james_tigerwoods on Thursday 18th May 17:03
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