Thank you. You are going to need something from the accountant whereby he admits that this is all his fault.
The problem is that he’s had for years to produce the accounts, there will have been numerous warnings and threats before now, then there was the bankruptcy petition, then another 2 months and now he wants another week.
For all of those reasons, it’s not looking particularly good.
At this late stage, all you can do is go into court tomorrow and give it your best shot and offer the legal charge in the interim.
The court will not grant the legal charge usually unless HMRC agree and HMRC are notorious for not agreeing anything other than being paid the full amount and being paid the full amount now. They may agree to a repayment schedule but unlikely to agree anything where it’s going to be repaid over more than 24 months.
As soon as they brought something to your attention, presumably many months ago you should have started to pay them something. Indeed, you should have started to pay them something over the last two months.
From experience, the amount of tax that they will be claiming is probably twice what they are entitled to. The reason they do that and exaggerate the claim is to get the taxpayer really worried and to deal with it.
Nonetheless, it appears that you accept that you owe some tax even if not the full amount.
Even if you are made bankrupt there is nothing to still stop you disputing the amount of tax which is owed and of course based upon the facts you have given me, you do have a negligence claim against the accountant.
I think you have more chance of getting this adjournment if you have a letter from the accountant absolving you of blame and explaining exactly why this has taken 2 months. To be honest, unless it’s a really complicated matter, and with my judges hat on I cannot see that the accountant needs another seven days solid. He could drop everything and work on this now. That’s what you need to explain, why the accountant needs the extra time having had 2 months already plus the time before.
Meanwhile, you also need to have put in place in the last two months something which that you are indeed trying to raise the funds such as a mortgage application or suchlike.
Unfortunately, you are in the hands of the court and I think this could go either way.
I wish I could give you a magic answer to this but unfortunately there isn’t one.
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