THIS SEEMS TO BE POPPING UP IN THE BANKRUPTCY SECTION BUT IT IS MORE RELEVANT TO THE TAX / LAW / FRAUD SECTIONS??...
Hello, I have a serious problem , I was due to go bankrupt 6 years ago but instead me and my then girlfriend decided to set up a bank account that I / We could use. Due to my low wages I started selling stuff that I took from work through my GF bank account and some stuff through my own bank account , it was nearly all scrap stock that was going to be thrown away , anyway 6 years on and me and my now ex wife have split leaving a bank account that has had over 60k go through it , none of us has declared this to the taxman , i also have been selling stuff through my own bank account , now me and my wife have split i really want to own up to everything!!! I have so many problems I really want to own up to it all , I dont really want to get my ex wife in trouble but she wants me to declare all this money and get the tax paid off , also she has earnt over 100k in the last 6 years and not paid any tax , can you give me any advice please???
I also wanted to ask , what happens if I own up to all the tax and can't pay it, I dont have any assets , no car , no house etc, can they make me go bankrupt , if so would I still be able to have a bank account.
Thanks for your question which is now with the UK tax section of Just Answer
You state that you have £60K in the bank, how much profit do you think you have actually made in the last 6 years, do you think the £60K would cover the tax owed, any Class National Insurance and interest/penalties?
I think its admirable to make a full declaration, and it could be worth engaging an accountant to help you through the process, (as they can negotiate on your behalf) and certainly HMRC will think more kindly towards this situation, if you make a full disclosure, its just a matter of whether you have sufficient to pay what is owed (with all the charges) and also are in the position to pay of any balance that the £60K does not cover.
But HMRC are always open to offers of a payment plan, so lets see what sort of amount we have (as a ballpark figure) before worry sets in,
Could you also advise whether this was just income you made, or both you and your girlfriend (as a joint venture)
Thankyou , I didn't make myself clear as all the money has been spent , plus another potential issue I have is with the csa as for the last year I have been paying based on my employed income rather than the actual money I have been earning .
It was really my income but went through her account and we both spent the money on living / petrol / rent etc, what if I cant pay the tax as in reality I have nothing no house no assets no money whatsoever.
Thanks for your question
So we have 60K over the last 6 years, a approx £10,000 extra income a year. Of this approx £10,000 a year how much did you spend on the goods you sold, and what other costs did you have (did you sell on ebay and incur costs, or delivery charges etc)
Lets see whether the position is all taxable. Can you also advise what your employment annual income is approx each year.
I note your comments re the CSA but they will give what time you need to pay arrears IF there is additional money to worry about.