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[JeremyBowskill]

I will keep this as brief as possible, about 9 years ago I and a friend started a smallish (60-70k a year) business exporting classic cars back to the UK. I was responsible for the Thai side and he went back home and took care of the UK end. The business ran pretty well until the pound went south and we wrapped the business up , with the last vehicle being sent about a year ago.

My question is, my friend in the UK turns out to have pretty much swerved paying all forms of tax on the vehicles apart from the duties needed to clear customs. I haven't lived in UK for over a decade and have never dealt with any work on the UK side. What if any responsibility can be laid at my door for the taxes?

Thanks in advance

Edited June 21, 2013 by JeremyBowskill

[churchill]

Depends how the business is set up ?

[yoshiwara]

If you were liable for taxes in the UK (ie submit an annual return) at that time then you are personally liable for taxes on your business. I am assuming that you didn't pay any taxes in Thailand so no offset to claim. It may be that you didn't keep totally accurate records for the business activity over the years but you can make a stab at it and put the data in a spreadsheet and convert any baht to sterling. Then brief an accountant to bring you in from the cold if that is what you would like. On the other hand you can take the risk and ignore it but you are concerned that your friend may put you in it, yes?

Edited June 21, 2013 by yoshiwara

[Baerboxer]

Mr. Churchill is right. How was this business set up? Limitied registered UK company, partnership etc? Or did you set a company up in Thailand? How were you "working" here - visa/work permit and have you paid any taxes here resulting in profit or salary from the business?

Yoshiwara gives good advice. Talk to a UK accountant and take his advice. Many give an intial free consultation. It sounds like you were buying cars here and shipping them back to a mate who sold them and you simply split the proceeds. I'd recommend talking to a tax accountant sooner rather than later.

[JusticeGB]

On the face of it - you are not resident in the UK for income tax purposes and any profits you earned from the business would not have been deemed income aring in the UK or even be declared by you to HMRC. If the income was earned in a UK company then the directors of that company have to report the taxable profits of that company to HMRC. If a UK company was formed and went into liquidation then the tax man would chase that company for unpaid Corpoaration tax and Income Tax. You would have no income tax to pay on your share of the profits if taken by way of fees. If you were paid a dividend in the past then the company should have deducted advance corporation tax from the dividend and paid it over to the tax man.

I do not see you having UK problems, however, it would appear that you were tradingt/working in Thailand and if you did not have a work permit that would be a big problem for you In Thailand. You should also have declared your Thai profits to the Thai tax-man. The Thai problem far outweighs any UK problem!

[JeremyBowskill]

Thanks for the advice chaps. Just to make things a little clearer or maybe not, the Thai side is not the issue all that was taken care of properly. The problem is the UK side, my friend never registered it as a business and never paid any taxes that I am aware of. He has some legal issues of his own (nothing at all to do with me) and they are checking his financial records because of his problem. They have made noises about money that went through a joint bank account we held during the period we were involved in this enterprise. Just wondered what implications this may have for me.

Amazed there has been no trolling yet and no burn in hell tax dodger posts.

[IBoldnewguy]

Thanks for the advice chaps. Just to make things a little clearer or maybe not, the Thai side is not the issue all that was taken care of properly. The problem is the UK side, my friend never registered it as a business and never paid any taxes that I am aware of. He has some legal issues of his own (nothing at all to do with me) and they are checking his financial records because of his problem. They have made noises about money that went through a joint bank account we held during the period we were involved in this enterprise. Just wondered what implications this may have for me.

Amazed there has been no trolling yet and no burn in hell tax dodger posts.

Burn in hell? Here in the US - the tax dodgers just register as a religion and go to heaven! Sorry for being such a troll.

[yoshiwara]

They have made noises about money that went through a joint bank account we held during the period we were involved in this enterprise. Just wondered what implications this may have for me.

You go straight to a tax lawyer to get ahead of the curve.

[JeremyBowskill]

Thanks for the advice chaps. Just to make things a little clearer or maybe not, the Thai side is not the issue all that was taken care of properly. The problem is the UK side, my friend never registered it as a business and never paid any taxes that I am aware of. He has some legal issues of his own (nothing at all to do with me) and they are checking his financial records because of his problem. They have made noises about money that went through a joint bank account we held during the period we were involved in this enterprise. Just wondered what implications this may have for me.

Amazed there has been no trolling yet and no burn in hell tax dodger posts.

Burn in hell? Here in the US - the tax dodgers just register as a religion and go to heaven! Sorry for being such a troll.

That's not trolling, that's humor. Always welcome on any post I make.

[JeremyBowskill]

They have made noises about money that went through a joint bank account we held during the period we were involved in this enterprise. Just wondered what implications this may have for me.

You go straight to a tax lawyer to get ahead of the curve.

No doubt this is great advice. I was kinda hoping you may post back on here as I have seen your posts and they are usually good advice. 1 slight drawback is I guess I would need to go back to the UK to follow through on the advice, although I may know a fella who could help me from here.

[Soutpeel]

They have made noises about money that went through a joint bank account we held during the period we were involved in this enterprise. Just wondered what implications this may have for me.

As other have said, retain yourself a UK tax lawyer, the fact is even though you have nothing to do with his "other affairs" which they are investigating, your name is linked to him via a joint a account, and once they find out your British one suspects HM Tax services are almost certainly going to come sniffing your bottom, whether you like it not, it seems you may be implicated in any of his other affairs.

Would be well worth the time/money talking to a tax lawyer in the UK and let him give an opinion or see what he can find out

[yoshiwara]

They have made noises about money that went through a joint bank account we held during the period we were involved in this enterprise. Just wondered what implications this may have for me.

You go straight to a tax lawyer to get ahead of the curve.

No doubt this is great advice. I was kinda hoping you may post back on here as I have seen your posts and they are usually good advice. 1 slight drawback is I guess I would need to go back to the UK to follow through on the advice, although I may know a fella who could help me from here.

There is a certain amount you might be able to do before you decide you need to go back.

The first is to write down the story of the business and the second is to record the data of the transactions.

You want to be able to present this to an accountant who can then read it and ask supplementary questions. Whether you are called back can wait for now.

Now, it helps if both the accountant and you are savvy with some simple software.

The story can either be sent as an attachment using word processing software eg WORD or you can use Google docs and send the accountant a link to the google doc.

The construction of data is a little more tricky. Either MS Office Excel or again google docs. If you use google docs then you can update as you go along and again just send the accountant the link.

As for signing tax submissions, well you can sign, scan and send it back to him/her.

The question is firstly, is there any documentation you need or have left in the UK or do you have everything with you anyway and secondly do you have an accountant who knows what they are doing?

Irrepective, you can start now with the preparation.

Edited June 22, 2013 by yoshiwara

[worgeordie]

Lawyers and Tax-men,! a winning combination,whatever happens

its going to cost you money.good luck I hope everything turns out

OK for you.

regards Worgeordie

[yoshiwara]

Lawyers and Tax-men,! a winning combination,whatever happens

its going to cost you money.good luck I hope everything turns out

OK for you.

regards Worgeordie

We are here talking about accountants, not lawyers. Lawyers is what might happen when you try to dodge dealing with a decent accountant.

[JeremyBowskill]

Thanks fellas. with regard to the questions asked by Yoshiwara, there isn't much left as far as documentation goes, the business concluded for the most part a couple of years ago. There was a little conducted after that but really it was just getting rid of stock that was left around, as for the paperwork stupidly I kept it for about a year after we finished and moved house a couple of times and it got binned at some point during these moves. I probably can find a decent accountant and am capable of using the above mentioned excel and google stuff, I was really questioning if actually I was liable or not at this point. Once I clarify that then I will move on with the above mentioned good advice. If I am not liable, to be fair my friend can deal with his own headache as he has caused me 1 for no reason as far as I am concerned.

[JeremyBowskill]

Obviously Vat is paid on all the vehicles, this is taken care of by the shipping agent and then settled up with by my friend. I know 100% that was all taken care of properly otherwise the vehicles could never have been registered in the UK. The question I am asking is around profits made only.

[worgeordie]

Lawyers and Tax-men,! a winning combination,whatever happens

its going to cost you money.good luck I hope everything turns out

OK for you.

regards Worgeordie

We are here talking about accountants, not lawyers. Lawyers is what might happen when you try to dodge dealing with a decent accountant.

Hi Yoshiwara ,If you notice in your above post you say Tax Lawyers, so is a tax lawyer not a lawyer but an accountant? regards Worgeordie

[yoshiwara]

Hi Yoshiwara ,If you notice in your above post you say Tax Lawyers, so is a tax lawyer not a lawyer but an accountant? regards Worgeordie

Worgeordie, you are absolutely correct. My error. I meant accountant, not tax lawyer. Thanks for pointing it out.

Edited June 23, 2013 by yoshiwara