Streetwise Thread - Tax Posts

[fluffystuff]

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

I don't see the need for the OP to start a new thread, but maybe Garlok would like to start one on tax and probate issues?

This thread was started by the OP in an attempt to discover whether the bank can appoint receivers in his particular situation, which is why it was started in the Housing section. It was not intended to be an analysis of whether the OP failed in his duty as the executor of a Will or acted incompetently (as has been suggested) since none of us is qualified to make that judgment call. It is also not about whether the OP has avoided paying tax.

Quite!

I must apologise to Streetwise for prolonging the tax discussion but posted as Garlok's information was misleading.

[PlanB]

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

Don't want to turn this thread into a tax argument Fluffy but . . . .

I don't see the need for the OP to start a new thread, but maybe Garlok would like to start one on tax and probate issues?

This thread was started by the OP in an attempt to discover whether the bank can appoint receivers in his particular situation, which is why it was started in the Housing section. It was not intended to be an analysis of whether the OP failed in his duty as the executor of a Will or acted incompetently (as has been suggested) since none of us is qualified to make that judgment call. It is also not about whether the OP has avoided paying tax.

[fluffystuff]

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.

regards
G

Again with respect Garlok, the honourable gentleman has misinformed himself and you! It clearly does not include partnerships.

A limited company employs it's staff, pays a salary, pays their NI and any other benefits and the individual staff member is taxed at source. Any profits the company makes thereafter, the company pays tax on. I.e. corporation tax.

With a LLP or a simple partnership, there are no employees. Each member has a holding in the business and takes profits according to their holding. The member is then taxed as an individual on whatever he draws from the business via self assessment.

A limited company is a legal entity in its on right. An LLP or simple partnership is not.

Lets leave it there. X

[garlok]

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

There is one very simple answer to all this and that is to honestly and openly go to a qualified legal professional to get it all unravelled if this is a genuine case. I detect a serious reluctance to do this at every turn. That is the best advice anyone could give you and is gold dust in your position if it is genuine.
It has been given to you several times and it has been declined. WHY?

regards
G

[Streetwise]

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

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

Well i suppose i could also argue that if the bank won't speak to me they are obstructing me from my duties.Bye the way did we fall out somewhere else.

[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

[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.

[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.

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.

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

[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

[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

[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

[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.

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