Stupidity beyond belief re: tax from family member

[psychocandy]

Brother is a welder who, for some time a few years ago, was a self-employed welder.
I knew about 12 months ago that he was having some problems with HMRC regarding owed tax. Knowing my brother and his attitude I let him get on with it.

Turns out he owed HMRC almost £20K. Finally got an accountant who's had to process 3 years of tax returns for him.

It gets better. Not, apparently, its unfair because the accountant has ripped him off for £700 for this services (I thought that was a pretty good price!), and the bad old HMRC want £2500 up front, and then £250 a month for the next year and how is supposed to pay this? To be honest, this is a lot less than they originally said so they've obviously let him off some fines and stuff somewhere.

Really winds me up. Yes mate, you saw all the money coming into your account and spent all the tax money down the pub in the first place, and could'nt be arsed to get an accountant when I told you to do so years ago. No sympathy at all.

Worse thing is hes got zero saved for this, so hes tapped up our Dad for the money. Old man is OK, not loaded, and doesn't need the money but its not the first time.

If it was up to me I'd let the bugger starve. His fault no-one elses.

Never ceases to amaze me how many blow their tax/VAT money and then bleat about it afterwards. If you'd too thick to realise that you've got to pay tax then stick with a PAYE job.

BTW. Anyone got experience of paying this sort of thing? Brother says hes going to pay accountant directly? Surely this should go direct to HMRC or can accountant sort out payment as well?

42 years of age and I don't trust the bugger with 2K of the old mans money meant to pay his tax bill. Because I know some will be syphoned off via the pub if he gets his hands on a huge wad.

Anyone got worse sibling than me?

[LisaContractorUmbrella]

Sympathies Psychocandy - agree with everything you say. Paying accountant for monies owed to Hector doesn't sound quite right tho'

[Alan @ BroomeAffinity]

Pay HMRC direct. His accountant isn't from Wakefield is he?

[kingcook]

If it was up to me I'd let the bugger starve. His fault no-one elses.

Very true, and this is what i'd do too.

This is also a good reason to never discuss the money you make with anyone. If they know you have £thousands in the bank and they're in the 5hit3 (even though it is their fault), you instantly become the scrooge of the family/your friends.

[psychocandy]

Sympathies Psychocandy - agree with everything you say. Paying accountant for monies owed to Hector doesn't sound quite right tho'

Thats what I thought. I did wonder if you could pay via accountant and they held it on account etc and arranged payment etc (sort of like a solicitor does when you buy a house).

My old man was going to just give brother £2000 cash or deliver the cash direct to accountant. Bad idea. Old man thinks cash is king but, as most will appreciate, its just hassle.

Chances are accountant did explain the payment method but brother, as usual, couldn't be arsed to listen.

[psychocandy]

Quite funny when he said he thought £700 for 3 years worth of returns was expensive as well.

Then I pointed out I pay almost double that per year to which he replied that was too much. But then, as I pointed out, I'm not the one in the tulip with HMRC - because of his accountancy choices or lack thereof, he is.

[Pondlife]

Pay HMRC direct. His accountant isn't from Wakefield is he?

THIS and only this.

Otherwise you could well end up funding a merc for some tart named Vicky (IIRC)

[northernladuk]

To be fair I think this type of thing happens a lot, it's only because you are connected it sounds quite shocking. Look at that business link webpage that NAT posted awhile ago. There were 6 people on the front page that had spent all their CT and VAT money and these are supposed to be professionals.

We all know directors abuse companies, people on benefits cheat the system and many people cheat the tax systems, we just don't know the depth/stupidity of the situations until you get close. Have to say it never fails to shock me every time a story comes out though.

Over the years I have met someone who boasted about having another kid to get a better council house, someone else who was one of these people that just live day to day and don't open their post to avoid what it says and owe money to just about everyone and so on. I don't know how they live with themselves.

[LisaContractorUmbrella]

Thats what I thought. I did wonder if you could pay via accountant and they held it on account etc and arranged payment etc (sort of like a solicitor does when you buy a house).

My old man was going to just give brother £2000 cash or deliver the cash direct to accountant. Bad idea. Old man thinks cash is king but, as most will appreciate, its just hassle.

Chances are accountant did explain the payment method but brother, as usual, couldn't be arsed to listen.

No audit trail with cash and I am not sure accountant would accept it. It is possible that accountant has a client account and it was suggested that they receive monies to avoid brother spending it all (again) but having to repay himself on agreed dates may instil sense of responsibility??

[psychocandy]

No audit trail with cash and I am not sure accountant would accept it. It is possible that accountant has a client account and it was suggested that they receive monies to avoid brother spending it all (again) but having to repay himself on agreed dates may instil sense of responsibility??

Yeh. Its for the up front sum....

But like you said, I can't see anyone being happy about someone walking into the office and dropping a pile of notes on the desk. If I ran a professional business, I wouldn't take cash. After all, it means someone has got to physically then go to pay this into the bank.