UK Tax

UK tax questions? Ask a UK tax advisor for answers ASAP

Connect one-on-one with {0} who will answer your question

I was a partner in a building company up to 2007 when I resigned.

Customer Question

The Inland Revenue have issued...

I was a partner in a building company up to 2007 when I resigned. The Inland Revenue have issued me with a demand for a large amount of unpaid tax connected to the employment status of a subcontractor who worked for the company in 2005. My partner in the company(who is also my life partner) ran the company on a day to day basis and I provided admin support, so he made the decision about the status of this subcontractor. The Inland Revenue are saying that as he worked continually for the company he should have been on PAYE and not self employed status. As I was a partner of the company at this point they are holding me jointly responsible? The amount of tax involved would effectively make me bankrupt as I do not have the funds to pay them immediately.

Submitted: 13 years ago.Category: UK Tax

Show Less

Ask Your Own UK Tax Question

Answered in 6 minutes by:

1/24/2010

UK Tax Professional: Julie Kingham, Chartered Tax Adviser replied 13 years ago

Julie Kingham, Chartered Tax Adviser

Category: UK Tax

Satisfied Customers: 734

Experience: CTA, ATT - over 10 years experience in UK tax - CGT, IHT & personal tax

Verified

Sorry, but your accountant is correct - as you were a partner in the business as the time you are liable (under partnership law).

When you received the refund of £13000 did you realise that this was incorrect - or did your accountant inform you that this was incorrect? Even though HMRC made a mistake in sending you this you have realised that an error had been made (especially as you do engage an accountant) and HMRC should have been notified at the time and the monies returned.

Your accountant should be trying to arrange a payment plan with HMRC in order to avoid bankruptcy.

Julie Kingham, Chartered Tax Adviser

Category: UK Tax

Satisfied Customers: 734

Experience: CTA, ATT - over 10 years experience in UK tax - CGT, IHT & personal tax

Verified

Julie Kingham and 87 other UK Tax Specialists are ready to help you

Ask your own question now

Customer reply replied 13 years ago

Thankyou for your prompt reply. The tax refund was due because of an overpayment of my personal tax in the previous year. In 2007 when I resigned I was not aware at that point that there was a problem with the status of a subcontractor. I realise that I am legally responsible as I was a partner in 2005 but do the IR ever consider that I was not personally responsible for the error in the employment of this subcontractor. The amount of unpaid tax is very large; my partner cannot pay it and nor can I. Do you think the IR would actually consider a payment plan when the amount is large and I do not have any income? I have two children. It may be possible to settle some of this debt on the sale of a buy to let property that I own. Thankyou for your help; it is useful to have a second opinion even though I will have to rely on the guidance of my accountant.

UK Tax Professional: Julie Kingham, Chartered Tax Adviser replied 13 years ago

I know it does seem unfair, but not many people enter in to a partnership (especially with family members / loved ones) fully aware of their responsibilities under Partnership Law.

Without knowing the full circumstances and the amount of tax that HMRC are chasing I can not comment on whether they will agree a payment plan. You may find that a charge is put on your buy to let property so when this is sold HMRC automatically take their payment out of the proceeds received.

Was this answer helpful?

Yes

How JustAnswer works

Describe your issueThe assistant will guide you

Chat 1:1 with an uk tax professionalLicensed Experts are available 24/7

100% satisfaction guaranteeGet all the answers you need

Related UK Tax Questions

An Electrical/Building contractor subcontracts work to the

An Electrical/Building contractor subcontracts work to the same subcontractors on a permanent basis which do not work as self employed subcontractors but instead use a limited Company with them as sol… read more

bigduckontax

Accountant

FCCA FCMA CGMA ACG

1,480 satisfied customers

I started working 4 november 15, but the company made me

I started working 4 november 15, but the company made me contract the 7 december, they paid me in the bank and i signed them a paper, but they have not given me payslip. I believe they have not pay ta… read more

bigduckontax

Accountant

FCCA FCMA CGMA ACG

1,480 satisfied customers

can director of a company, which is in construction trade,

can director of a company, which is in construction trade, be a subcontractor in his own company?… read more

Sam

Accountant

Higher Officer HMRC

7,004 satisfied customers

I work for a US company which has just taken private equity

I work for a US company which has just taken private equity investment. I am a UK national working in UK who held phantom shares prior to the sale, which paid disbursements as a partner. I am a direct… read more

bigduckontax

Accountant

FCCA FCMA CGMA ACG

1,480 satisfied customers

R tax code was not correct last year. I now have a liability

My tax code was not correct last year (in fact the change in code came quite late through the tax year). I now have a liability of £1550 i have advised inland revenue that i cannot pay this - i asked … read more

Tony Tax

Tax Consultant

High School or GED

7,089 satisfied customers

In December 2005 I invested £5,000 for 5% share in the company

In December 2005 I invested £5,000 for 5% share in the company I work for. On setting up the transfer of shares with the owner and the accountant, to keep the salary cost down (employers NI) the owner… read more

Sam

Accountant

Higher Officer HMRC

7,004 satisfied customers

We employed a manager in our business who was to deal with

We employed a manager in our business who was to deal with all monetary matters inc accountancy. We were instructed to set the salary @ £ 700 00 per calendar month. We received advice from the company… read more

Tony Tax

Tax Consultant

High School or GED

7,089 satisfied customers

Dear Sir, I have been working in UK for 3 months being the

Dear Sir, I have been working in UK for 3 months being the consultant of feed research and received a tax payment request to pay : 1. Inland Revenue and UK Tax 2. Local and Foreign Tax, Institute of H… read more

berduchwal

Accountant

Licenciatura

669 satisfied customers

My dad has just had a invoice to pay tax on Private Medical

My dad has just had a invoice to pay tax on Private Medical Insurance, that he has had for several years. He presumed his employers had advised the inland revenue about the insurance and he had alread… read more

Tony Tax

Tax Consultant

High School or GED

7,089 satisfied customers

Hello, I am curently in dispute with HMRC regarding underpayments

Hello, I am curently in dispute with HMRC regarding underpayments in income tax over the last 5 years. I have entered into the complaints procedure and have just received a reply that my tier 2 compla… read more

Tony Tax

Tax Consultant

High School or GED

7,089 satisfied customers

Inland revenue did not marry 2 PAYE sources of income ( apension

Inland revenue did not marry 2 PAYE sources of income ( apension from a previous teaching job and my paid emloyment). In consequence , I have paid tax only at the standard rate for the past 6 years ra… read more

Sam

Accountant

Higher Officer HMRC

7,004 satisfied customers

I was a director (with another who was the secretary) of a

I was a director (with another who was the secretary) of a company that has been struck off for more than a year now but the p35 for the limited company in its last year of trading never got sent to i… read more

Tony Tax

Tax Consultant

High School or GED

7,089 satisfied customers

my partner worked for an employer who completed a p46 car form

my partner worked for an employer who completed a p46 car form but did not complete p11d or b for same tax year? so his tax coding is wrong and he cant move forward wiht hmrc to resolve it? any help w… read more

Andrew Baker(baktax)

Personal Tax Adviser

High School or GED

756 satisfied customers

Please could you tell me if an employer fails to collect tax

Please could you tell me if an employer fails to collect tax from an employee over a long period of time i.e. 3 years, therefore running up a large debt for the employee. Who is ultimately responsible… read more

Sam

Accountant

Higher Officer HMRC

7,004 satisfied customers

Is there a benefit being a LTD company as a single contractor

Is there a benefit being a LTD company as a single contractor ie earning £40 + per hour at 37.5 hours per week compared to using an umbrella organisation to process PAYE such as parasol?… read more

Sam

Accountant

Higher Officer HMRC

7,004 satisfied customers

my partner has a new job which requires a tax reference. He

my partner has a new job which requires a tax reference. He has never paid tax for years. He wants to be legal now. What can he do?… read more

Tony Tax

Tax Consultant

High School or GED

7,089 satisfied customers

a company has been assessed to income tax for a disprortionate

a company has been assessed to income tax for a disprortionate amount on assessed income at 35% but by mistake the inland revenue did not realise that the company is taxable @ 15% instead of 35%. The … read more

Sam

Accountant

Higher Officer HMRC

7,004 satisfied customers

Please help, my friend he has been paying off a tax assesment

Please help, my friend he has been paying off a tax assesment for the last two years that was demanded by Inland revenue as they would not belive he was in his homeland abroad helping his father build… read more

TEAP007

Tax Preparer

Fully Trained Inspector of Taxes B1

759 satisfied customers

Disclaimer: Information in questions answers, and Show Less

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

JustAnswer in the News:

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...
T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.
BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.
JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.
OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.
Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!
AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.
GPHesperia, CA

< Previous | Next >

Meet the Experts:

Sam

Accountant

7,004 satisfied customers

26 HMRC expertise, PAYE, Self Assessment ,Residency, Capital Gains, CIS ask for Sam Tax

bigduckontax

Accountant

1,480 satisfied customers

FCCA FCMA CGMA ACIS

TEAP007

Tax Preparer

759 satisfied customers

Fully Trained Inspector of Taxes / District Inspector/ Team Leader/ Offshore Consultant/ 41 years

Andrew Baker(baktax)

Personal Tax Adviser

756 satisfied customers

35+ years experience in income tax, CGT, non-residence

berduchwal

Accountant

669 satisfied customers

Qualified accountant and bookkeeper running my own practice since 2008.

Clare

Solicitor

149 satisfied customers

25 years exeperience as a high street solcitor

Mrs-Tax

Tax Adviser

59 satisfied customers

Law Degree, 19 years in UK Tax.

< Previous | Next >

Show MoreShow Less