The Safety Net and The Wrong Friend

Friday July 22, 2016

Dear Nettie @ The Safety Net

I found your details last night and see that you are local and wondered if I could book an appointment.

I am employed by various agencies as a nurse and seem to be getting letters from HMRC every year, but as my tax is paid out before I get paid I haven’t responded.

The latest letter I have received says that I owe them money by way of fines, which I don’t understand. I have spoken to one of my friends who has a good understanding of maths and he suggested I started a limited company and this would sort it out, so I did.

I have now had a letter regarding my limited company and my friend says I now need to talk to an Accountant – can RIFT Accounting help me sort that out?

Thanks in advance for your help – Molly

Hi Molly

Thanks for the email and for sharing this information.

Well, this does all sound like it’s got in quite a mess.

I appreciate that it is not possible to go back in time, but the best advice is always to reply to HMRC letters when you receive them. There are a variety of reasons that you may have received letters, but I am assuming that they have asked you to do a self assessment tax return, and if you ignore the request you will receive a fine.

Regardless as to whether you have paid enough tax or not, they are entitled to ask you to complete this, and if they do not receive a reply, you can be fined, which seems to be what’s happened here.

My best advice would be to contact HMRC, explain the situation and find out what is required.

I am intrigued as to why you have opened a limited company and why your friend advised you to do so!.

Now that the company is open, there are various requirements that you will have to adhere to such as annual accounts and confirmation statements which are mandatory. I would suggest we talk through this situation to ascertain what you actually require and potentially to shut the company if that’s the best solution.

I appreciate that your friend meant well, but I really wish you had spoken with us sooner as I believe this could have saved you a lot of money potentially and time in sorting this out.

The importance of surrounding yourself with the right people is something I am always saying to clients, along with the fact that you can’t put a price on wrong advice!

Please do give me a call to have a chat if that would help - Nettie

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