Hi Its MamaTax Here!
Thanks for the question.
Im deeply sorry of your situation.
I am considering resigning but that means the tax man can chase me for the underpayment. Or do I wait to be suspended? Is it the companys responsibility as I genuinely didn't think about tax and it continued for 6 years. The accountant never raised it in meetings. Should they have?
Thanks for the response. Unfortunately the responsibility to ensure you are correctly taxed lies with the taxpayer - employee. Every year when you get the P60 or P45 you need to ensure correct tax code and taxes are deducted. However if the employer has been grossly negligent, then there is scope for the employer to be responsible.
Generally if one discovers that the wrong amount of PAYE tax or NICs have deen deducted, the employee is responsible for checking and ensuring that they are correctly taxed and should contact HMRC for advice about how to proceed. Employers also are required to call HMRC's on their employer Helpline on Tel 08457 143 143.If an emplopyee has underpaid tax and the employer was grossly negligen then the employer must generally pay the underpayment although sometimes the employee can be directed to pay it.
However its not clear or easy to prove negligence and hence my advice is to get in touch with a tax investigation expert.
An expert will save you the task of going to and from HRMC and employer etc. The fee for such an expert could be as low as £100 and this could save you the hassle.,
Thanks. As I potentially owe £25000 which I haven't got- can they prosecute me?
You can easily get such experts on sites like HERE and HERE by posting your case and the right experts near your area contact you.I totally understand your case, the fact that you cant afford £25k means you need good advice as HMRC has a number of weapons against you including taking possession of your assets without taking you to court, or referring to debt agencies etc. Hence its worthy pointing this facts on your post on these sites so that the right expert can assist you.
I deally you should mention that you want a tax expert with employment law background so that you dont need to hire a legal expert as well. Hope this helps.
Thank you very much. Can they hassle me if I go bankrupt? The house is in my name and my son-in-laws. I don't have any other assets.
Bankruptcy is one way of dealing with this. However this should be considered after taking advise from a specialist i referred you. Following an order of bankruptcy, a bankruptcy trustee is appointed who takes possession of your assets towards payment of your debts fairly between your creditors, according to certain rules. Depending on your case, any assets can be possessed for bankruptcy and a number of restrictions on what you can do.
Generally for the amount you are talking about HMRC tries to reach an agreement and if the local recovery office has been unable to reach an agreement with you or to enforce payment by distraint or a CCJ– then your file may be passed to HMRC's Enforcement Offices for consideration of bankruptcy proceedings.The strategy for you is to try to get the company to pay with the help of an expert in that area.
OK- I will look at those options. Thank you for the advice. I just hope I stay in a job or I won't be able to pay anything at all!
Hope so. All the best.