Please help !I have been working for the last 6 years or so for a company through what I thought was an umbrella company under IR35. I have recently found out that this is not so. It was not an umbrella company but just a factoring ( I think that's what you call it) company so no tax or NI has been paid on my earnings ! I was introduced to them through a colleague and told that they take care of everything !I have been earning 30-35k a year.I am now petrified of what may happen ( loose house, family, prison) and don't know what to do. I am at my whits end and don't know if I can face this.I don't have a lavish lifestyle, thousands in the bank, flash cars etc. I work all the hours I have to make ends meet to support my family and ex- wife.Please please please can you help me before I resort to something regretable.
Sorry to hear of your predicament.
The best course of action is for you to engage an accountant who will be able to make full disclosure to the Revenue. They will be able to advise you on the best course of action and should have experience in negogiating over penalty charges.
By making full disclosure to the Revenue you will prevent a potential investigation in to your affairs and they will treat you more leniently over penalties etc and may come to an arrangement whereby any tax can be paid in installments.
CTA, ATT - over 10 years experience in UK tax - CGT, IHT & personal tax
Thank you Julie. Am I likely to go to prison ?By an estimate I could be looking at £60-70k and I dont have that kind of money.Would they take installments over 10-20 years ?
I seriously don't think the Revenue will send you to prison - especially if you come clean before they find out.
I don't know if they will take installments over that length of time - in all honestly probably not. But what you think you owe them - and what an accountant will determine are probably means that the actual amount will probably be significantly less than what you anticipate.