I have recently been told that I owe tax back dating to 1993 does anyone know if I am still eligable to pay it

Answer 1

If you owe tax from fourteen years ago and the Revenue know it then you need professional representation. The simple answer to your question is that, according to the circumstances, you may be liable to pay.

The rules were changed with effect from the 1996/97 tax year when self assessment was introduced. Under self assessment the tax return for a particular year must be filed by the 31st January following the end of the year. The Revenue then have twelve months to open an enquiry into that return. (If the return is filed late the enquiry period is extended)

After that date they cannot open that year unless they "make a discovery". That means they obtain information to cast doubt on the veracity of the entries in the return. In this case they can go back for six tax years. They are barred from looking at earlier years UNLESS they can show that you were negligent in completing the return. This is a stronger requirement than just making an innocent error.

Where negligence is involved then the limit is twenty years.

The rules before 1997 were similar but enquiries were started by the issue of an assessment (usually estimated). This had to be done within six years uinless, again, negligence is involved.

So take your correspondence to an accountant and get an informed opinion.

Answer 2

Most debts have a time limit of 6 years from the date you last acknowledged that the debt was due. There is however, one exception to this and that is a tax debt. Tax debts have no time limitations, and can be recovered by the Revenue at any time.

You are therefore on what information you have provided in your question are still eligible to pay this amount.

My best advice is talk to the Revenue. Use the telephone number on the letter that was sent to you and discuss this matter with the Revenue. We are not ogres in the Revenue, and can offer help in paying back this debt under a time to pay arrangement. (Assuming you haven't already had one which has failed, you only get one go at an arrangement).

Answer 3

I am 90% certain that the tax man cannot go back more than 7 years. I have to keep all my records for that long, in case That nice person wants to come and check if my tax returns are true or not. Also back in 1980 we discovered my father-in-law had being paying too much tax, and we could only get seven years refunded.
Go into an accountants and just ask them. Most will give you a quick verbal answer, because they will be hoping for your business.

Good luck, don't let them get any more money.

Answer 4

Hi,
I'm assuming you are in the UK. The above answers mention the 6 year rule in which debts can be written off in this time if there has been no attempt to collect them. Unfortunately HM Revenue and Customs are exempt from this so there are no time limits which stop HM Revenue and Customs from pursuing and collecting arrears of tax provided an initial assessment of the tax due has been made.
Go to Citizens Advice for more info.

Hope this helps.

Answer 5

Well the first question is, do you owe the tax?
Then, have HMRC been negligent in dealing with your affairs?
Have they been tardy in notifying you of this debt?
If it's before 1996, some of this must have been before self assessment. Were the assessment made correctly and in time?
Were appeals lodged?
Have they explained to you the options available to you, including equitable settlement? (Very unlikely, as they keep this a secret.)
Get an accountant.

Answer 6

It does not sound to me as if this is a 'discovery' - I am assuming you have not been subject to an investigation, but that this is an old tax liability which was assessed at the time but has been overlooked. if that's the case, then you have to pay it - tax debts don't just die!
If you have been the subject of an investigation and a discovery has been made, then I would hope you have an accountant to represent you.

Answer 7

I have checked very recently with the Inland Revenue and they told me that you can only claim tax rebates for the past 6 years and no later. If you leave it later then this then you loose any chance of getting a refund.

Answer 8

The inland revenue can go back 7 years and claim back any money owed. They did this to me Frank. They can only go back to 2000

Answer 9

My understanding isthat the I.R. can only backdate for 6 years, but I might be wrong. Go to see them...they can be really helpful.

Answer 10

I don't know for sure, but seeing as it's the taxman I'd say Yes.