Tax backdating and owing question

Tax backdating and owing question

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james_tigerwoods

Original Poster:

16,287 posts

197 months

Thursday 18th May 2017
quotequote all
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

Edited by james_tigerwoods on Thursday 18th May 17:03

plasticpig

12,932 posts

225 months

Thursday 18th May 2017
quotequote all
If HMRC believe it is deliberate evasion then they can go back 20 years.

james_tigerwoods

Original Poster:

16,287 posts

197 months

Thursday 18th May 2017
quotequote all
I read that they can go back that far, but she knows she did but can't prove it.

I've suggested she find other colleagues who might be able to corroborate this and/or have payslips.

gus607

917 posts

136 months

Thursday 18th May 2017
quotequote all
HMRC are bds.