Time to Pay the Tax Man his Due?

Discussion in 'Accounting and Taxes' started by AdamMBSmith, Dec 27, 2012.

  1. AdamMBSmith

    AdamMBSmith
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    I think it's time I came clean before I get caught.
    I just wanted some in put from you guys which might help me to not need to pay quite so much in tax.

    A few years back I set up a couple of blogs with the intention of making some extra cash through affiliate schemes and google adsense.
    Then I picked up some content writing work off the back of those blogs.
    So while I started out making about £20 a month, after a couple of years I'm making between £100 and £200 a month.
    Obviously, I should have declared all this to the tax man much sooner, but the time has just flown by.

    Anyway, I've been put in touch with SJD contractor accountants by a friend for some advice, but I'd like to ask if any of you have been in this situation and if there's a way I can get around paying back 3 years of tax.
    Or more importantly, if I can sweep the Google Adsense and Affiliate payments under the carpet, because they are received via Paypal while all writing work is paid directly into my bank account.

    I'm at the stage where I need to declare all this because the income is regular.
    It's just that if I suddenly have to pay back 3 years of tax on all my earnings (and would that include revenue from eBay sales?) I won't be able to pay the rent for two months!

    Advice would be gratefully received.
     
  2. Mark T

    Mark T
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    The answer may be simple, if it will be allowed in your area.

    What you can do is to inquire if you can pay the 3 years tax via installment scheme. You will have to divide the total tax amount you have to pay in 36 months, and in 36 months you will have to pay until the tax you need to pay is complete. This won't be easy as you also might have to pay the tax you need to pay this year - but is even better than paying it full one time.

    Better talk to a personnel from your tax collector's department so you can further ask question on how to deal with your unpaid taxes.


    Regards,
    Mark T
     
  3. Fergal

    Fergal
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    Different countries have different tax laws, what country are you based in AdamMBSmith?
     
  4. AdamMBSmith

    AdamMBSmith
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    I'm in the UK
     
  5. Fergal

    Fergal
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    I'd suggest that you speak to a local accountant about the issue. Perhaps you already know an accountant or maybe you know someone in business who could recommend an accountant to you. Many accountants will offer a free first consultation and this may be enough to clarify the tax implications involved and set you on the right track for future tax obligations.

    A good accountant will be able to save you money in tax payments and this saving may even be enough to cover their fees.
     
  6. noreturn

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    That is probably your best bet, and always remember the saying "It's better to be safe then sorry".
     

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