3.5million people to receive hundreds of pounds back from the tax man (but another one million owe him money)

3.5million people to receive hundreds of pounds back from the tax man (but another one million owe him money) | Mail Online

Most of these rebates are for people involved in the building trade working as being Self employed under the 714 Certificate system. They pay a deduction from their payments as they get them. Then they produce a tax return, annually, showing legitimate costs of carrying out their business. If the tax calculated on the Return is less than the total amounts deducted then they get a rebate.

In fact, the Government has had the use of all these deductions until the July of the year following when the deductions were taken. A deduction, taken in April, at the beginning of the tax year, is in use,by the Government for 14 months for example. The taxman does give interest, which is much higher than any bank, so it is a good way to save, for the self employed construction worker.

The Collector of Taxes can accept payment plans of outstanding tax. Fines are now levied for late returns and late payment. If you owe, say, £1,000 in back tax and cannot pay it, then a fine is of little consequence, as it is just added on to the bill. Many just declare bankruptcy citing the taxman as main creditor and the taxman then gets nothing or a percentage should the defaulter have saleable stock. The taxman must apply for a Court Order to take goods, collected by bailiffs in England, Wales and Northern Ireland. Sheriff's Officers perform similar duties in Scotland. Even at that late date, a payment plan can be reached, certainly, with Sheriffs Officers, to pay them, by instalments, the money plus their costs. Most ensure that they have nothing to sell long before bankruptcy is confirmed. Others wait until the bitter end, using whatever money that they have, to buy stock or materials, prior to going bankrupt, citing the Sheriff's Officers as the main creditor. It should be remembered that by taking the bankruptcy route, credit card balances, outstanding loan amounts, outstanding poll tax, rent for business or personal property, unpaid supplier invoices, outstanding VAT payments and fines, even your Dentist bills and anything else owed all 'disappear' too, at the same time. You just list whatever you owe. There was, in the past, a stigma attached to declaring bankruptcy. Nowadays it is used as a weapon to fight off demands for payment. People are allowed to work and earn enough for normal family needs, even when bankrupt. Any extra income, should be paid in, to be divided among the creditors, over the period of bankruptcy. Tools of trade and cars/vans, to carry out work, cannot be sold either. Credit facilities are difficult, if not impossible, to obtain, resulting in cash trading, with all the fiddles possible within that system!!! The wife or partner, sister or brother, who are credit worthy, just step in and start up a business, as a partnership with the bankrupt. The whole thing is now a joke !!!!