Streetwise Thread - Tax Posts

[garlok]

These posts are a combination of removed posts from the main thread here: --> http://forums.all-about-debt.co.uk/s...-P-A-receivers

Thanks

Niddy


Thanks Mrs D. Absolutely correct. Now we have yet another contradiction and another complication which I was concerned about in earlier posts. I said "partner" and "legal spouse" etc. Was told in no uncertain terms "WIFE" Now told in this most recent post by the OP "NOT MARRIED". Blimey this is a mess and I am going to speak with Niddy later in the day as I am beginning to have serious doubts about all of this and wasting my time and efforts and those of everyone else on this forum.

If the OP cannot be honest with himself let alone us then we have nothing to offer. I surprised at the reluctance shown to go get a solicitor instructed, or perhaps I am beginning to. The samll matter of Corporation tax returns as now required for businesses, clubs associations, charities etc has not even been tackled yet concerning the "business" which has been freely admitted exists.

regards
G

[PlanB]

Re: Bank threatening to appoint L.P.A. receivers.

Now we have yet another contradiction and another complication which I was concerned about in earlier posts. I said "partner" and "legal spouse" etc. Was told in no uncertain terms "WIFE" Now told in this most recent post by the OP "NOT MARRIED". Blimey this is a mess and I am going to speak with Niddy later in the day as I am beginning to have serious doubts about all of this and wasting my time and efforts and those of everyone else on this forum.

If the OP cannot be honest with himself let alone us then we have nothing to offer. I surprised at the reluctance shown to go get a solicitor instructed, or perhaps I am beginning to. The small matter of Corporation tax returns as now required for businesses, clubs associations, charities etc has not even been tackled yet concerning the "business" which has been freely admitted exists.

I don't think streetwise is not being honest. Perhaps he's just not business savvy. Isn't corporation tax only relevant if the business was a limited company? I have a business partner and we're both sole traders. No corporation tax issues for us.

I also don't think the OP is wasting my time.

[garlok]

Re: Bank threatening to appoint L.P.A. receivers.

I don't think streetwise is not being honest. Perhaps he's just not business savvy. Isn't corporation tax only relevant if the business was a limited company? I have a business partner and we're both sole traders. No corporation tax issues for us.

I also don't think the OP is wasting my time.

Sorry planB I would not start boasting about that in public. I think that it became law with the enactment of the Companies Act 2006 but it may have been a piece of legislation which crept onto the Book via a Finance Act at about the same time, BUT and its a HUGE BUT, all self employed, trades, sole proprieterships, partnerships, LLP's clubs, associations, societies and I believe charities were brought under the umbrella of the regulations governing Corporation Tax and most of the necessary regulations of keeping records. There are some small exemptions to the record keeping side but they have to be applied properly and all the necessary returns made to HMRC. The real reason that not much has been done about it is the lack of resources within HMRC. A lot of people have deluded themselves into believing that it does not apply to them or that they will not get caught.

However in a case like this where an estate that has not been discharged properly (clearly admitted so by the OP) do you really think that HMRC will not suddenly sit up and take notice? They have watchers actually charged with these tasks! From what i can see of the OP's posts and rsponses to the questions raised he is on the road to a claim by the bank that he behaved negligently as the executor of his PARTNER'S (common law wife) estate. He cleverly avoided all references to the "business" yet this business he claims holds significant assets of the estate. Has he examined in detail the books of account for this business? Clearly not on his own admission hence the assumption will be made that this is a business "below the radar" and operating in the shadows..

Hey I am the side of everyone seeking help on this forum, but what the hell do you think will happen if anyone really gets the bit between their teeth over this? This all based on the responses he has made all over these and other forums. If heaven forbid I was the creditor and a forensic accountant I would already be in the High Court taking him apart by the seams. And it seems to be the case that the bank have already sussed this out and are moving against him apace.

regards
G

[Streetwise]

Re: Bank threatening to appoint L.P.A. receivers.

Sorry planB I would not start boasting about that in public. I think that it became law with the enactment of the Companies Act 2006 but it may have been a piece of legislation which crept onto the Book via a Finance Act at about the same time, BUT and its a HUGE BUT, all self employed, trades, sole proprieterships, partnerships, LLP's clubs, associations, societies and I believe charities were brought under the umbrella of the regulations governing Corporation Tax and most of the necessary regulations of keeping records. There are some small exemptions to the record keeping side but they have to be applied properly and all the necessary returns made to HMRC. The real reason that not much has been done about it is the lack of resources within HMRC. A lot of people have deluded themselves into believing that it does not apply to them or that they will not get caught.

However in a case like this where an estate that has not been discharged properly (clearly admitted so by the OP) do you really think that HMRC will not suddenly sit up and take notice? They have watchers actually charged with these tasks! From what i can see of the OP's posts and rsponses to the questions raised he is on the road to a claim by the bank that he behaved negligently as the executor of his PARTNER'S (common law wife) estate. He cleverly avoided all references to the "business" yet this business he claims holds significant assets of the estate. Has he examined in detail the books of account for this business? Clearly not on his own admission hence the assumption will be made that this is a business "below the radar" and operating in the shadows..

Hey I am the side of everyone seeking help on this forum, but what the hell do you think will happen if anyone really gets the bit between their teeth over this? This all based on the responses he has made all over these and other forums. If heaven forbid I was the creditor and a forensic accountant I would already be in the High Court taking him apart by the seams. And it seems to be the case that the bank have already sussed this out and are moving against him apace.

regards
G

How can the estate be discharged properly if I cant get the bank to play Ball, all that's in the Estate is the Family Home and my late partners share in the flats that may or may not make a profit.

[fluffystuff]

Re: Bank threatening to appoint L.P.A. receivers.

Garlok, with utter respect, I am afraid you are quite wrong concerning corporation tax, only a Limited Company is liable for this as planB has stated.
Yes, there are certain legal returns a Limited Liability Partnership ( LLP ) for example, is obliged to make, but the partners in that business are taxed as individuals via self assessment. Likewise, a simple partnership is taxed in the same way.

My husband and I have, over the years, been involved with all three scenarios.

x

[garlok]

Re: Bank threatening to appoint L.P.A. receivers.

Sorry Fluffy wrong. It was part of the Labour Government remit to bring all businesses under the umbrella of the Corporation Tax regulations as I stated. We are and have been a limited company for many years so it was irrelevant to us anyway but the documents were provided to us by HMRC themselves. To reinforce what I said, at the itme of enactment I was the Chairman of a local hobby club a not for profit organisation and responsible in that role legally for what has become known as corporate governance. Our treasurer received from HMRC all the relevant notices as to reporting and record keeping and we had to go into it in some depth. The Companies Act 2006 is the most complex piece of legislation ever placed on the Statute Book in the history of the UK. The net result was that we had a lot of exemptions granted because of the nature of the situation but we were warned that the underlying principles still applied. I asked our previous accountants in Hampshire for an opinion and they concurred. the situation is even more onerous now with introduction of RTI

regards
G

[fluffystuff]

Re: Bank threatening to appoint L.P.A. receivers.

Sorry Fluffy wrong. It was part of the Labour Government remit to bring all businesses under the umbrella of the Corporation Tax regulations as I stated. We are and have been a limited company for many years so it was irrelevant to us anyway but the documents were provided to us by HMRC themselves. To reinforce what I said, at the itme of enactment I was the Chairman of a local hobby club a not for profit organisation and responsible in that role legally for what has become known as corporate governance. Our treasurer received from HMRC all the relevant notices as to reporting and record keeping and we had to go into it in some depth. The Companies Act 2006 is the most complex piece of legislation ever placed on the Statute Book in the history of the UK. The net result was that we had a lot of exemptions granted because of the nature of the situation but we were warned that the underlying principles still applied. I asked our previous accountants in Hampshire for an opinion and they concurred. the situation is even more onerous now with introduction of RTI

regards
G

Yes Garlok, as I said, there are certain returns that Limited Companies and LLP's ( also charities, clubs etc) are obliged to make under the Companies Act 2006, but as far as paying tax as a member of an LLP or just a simple partnership, each member is taxed thus, as an individual via self assessment based on their share of the partnerships profits.

X

[garlok]

Re: Bank threatening to appoint L.P.A. receivers.

How can the estate be discharged properly if I cant get the bank to play Ball, all that's in the Estate is the Family Home and my late partners share in the flats that may or may not make a profit.

As executor have you examined in detail the books of account for this business? Have you ascertained if the business and hence your late partner and her business partner were liable for any tax outstanding. remember that HMRC can in fact go back to the date of the registration of your birth if they so choose, the "7 year rule" is a myth. If you have not done this then it may be argued in a court that you have been negligent in the discharge of your duties as an executor.

Have you conducted the legal searches at the Land Registry to ascertain the presence or otherwise of legal charges on the property (ies) that claim are held as security by the bank? If not this again may be construed in a legal argument as negligent in your duties as the executor. IF you had made and exercised due diligence in all of this then maybe just maybe you would have had a better experience with the bank. They have clearly grave doubts about the situation, are confident of their own ground and have moved against you in the way that they have.

Oh and by the way all civil law solicitors litigate is the generic name for civil law proceedings. there are specialists in every section and division of the law but is "litigation" by definition

regards
G

[garlok]

Re: Bank threatening to appoint L.P.A. receivers.

Here you go Fluffy and planB some enlightening reading for you:-

http://www.hmrc.gov.uk/ct/getting-started/intro.htm

regards
G

[fluffystuff]

Re: Bank threatening to appoint L.P.A. receivers.

This was the original question.Wish I never asked.

Bear with us Streetwise, your thread has rather jumped to a question of tax on any benefits rather than addressing the root of the problem. If there is a tax issue this can be dealt with later.

We need to find out exactly what the bank has done, what they think they can do and what paperwork they hold to corroborate this.

Perhaps we need to start again??

X

[fluffystuff]

Re: Bank threatening to appoint L.P.A. receivers.

Here you go Fluffy and planB some enlightening reading for you:-

http://www.hmrc.gov.uk/ct/getting-started/intro.htm

regards
G

Taken from the above -


Who is liable for corporation tax?


limited companies incorporated in the UK
foreign-based companies with a permanent place of business in the UK
members' clubs, such as social clubs, sports clubs and holiday clubs
societies, such as friendly societies and provident societies
associations, such as housing associations and trade associations
co-operatives
other unincorporated associations
groups of individuals carrying on a business that is not a partnership
charities, or companies that are subsidiaries of - or wholly owned by - a charity
NHS foundation trusts if they are carrying out significant commercial activities that are not part of core health care delivery, such as running a commercial laundry

[Streetwise]

Re: Bank threatening to appoint L.P.A. receivers.

Bear with us Streetwise, your thread has rather jumped to a question of tax on any benefits rather than addressing the root of the problem. If there is a tax issue this can be dealt with later.

We need to find out exactly what the bank has done, what they think they can do and what paperwork they hold to corroborate this.

Perhaps we need to start again??

X

Post 31.

[fluffystuff]

Re: Bank threatening to appoint L.P.A. receivers.

Post 31.

Thanks Streetwise, I saw this but it has been swallowed up amongst issues that can be dealt with later IMO, hence my suggestion of a new thread with this post at the beginning???

Niddy, what do you think?

[Streetwise]

Re: Bank threatening to appoint L.P.A. receivers.

Thanks Streetwise, I saw this but it has been swallowed up amongst issues that can be dealt with later IMO, hence my suggestion of a new thread with this post at the beginning???

Niddy, what do you think?

If it can be moved go for it.Can you make post 31 into a new thread please.

[garlok]

Re: Bank threatening to appoint L.P.A. receivers.

Don't want to turn this thread into a tax argument Fluffy but please read a little bit further you will note:-

"ALL profits from trade etc" or words to that effect and that means everyone according to the inspector we had discussions with at the Bangor office.
And you will note from your own selective quote "all unincorproated bodies"

regards
G