Hi MH64
I can't comment on what can or can't be included in your trust deed, especially where HMRC is concerned, expert advice will follow on that.

Some things to think about before they get a chance to answer -
When you entered your trust deed, did you include in your expenditure an amount each month for putting aside to pay your annual tax bill?

When you say the tax man has gone back 6 years, what do you mean? If you are self employed your tax return should be submitted each year, preferably by an accountant and I see no reason for any difference if that were the case

Who quoted you £30000? Was that an accountant or someone from HMRC, that is a huge amount.

Being self employed you pay tax on your profits, that's a difference of £5000 per annum, do you think this is correct? Did you query your tax bill each year when presented with it at the time?

If you have submitted your tax returns yourself during this period I would now hand everything over to an accountant for some professional advice, if you had an accountant do it for you, I would hand all your financial documentation to another accountant and seek their opinion on this situation

Good luck

Hello mh64 and welcome.

Tax due from the period before your trust deed was signed will be included in it (the debt will become a creditor like the others).

Tax due after your trust deed was signed remains your responsibility to pay.

HMRC are actually very good to deal with in trust deeds for tax & VAT.

Anything that was owed to the date you signed the trust deed will be a claim in the trust deed, but you will be liable for anything after that.

Mark

i had the same problem they went back 6-7 years because of my forces pension they then changed both my pension to 40% tax and my work pay tax code dropped down to k177 not sure if they are finished with me i hope so

Thanks for all the advice. I feel pretty positive reading all of it. The reason I think hmrc are going to go back 6 years is that they are investigating my 2010-2011 accounts. My accountant suspects they will now go back and look at 6 years and is estimating I might get hit with a £30000 bill. Would my existing IP then add the additional bill(HMRC was not one of the original creditors) or is it more complicated than that?

Whatever the assessment amount, the sum up to the date of signing will be a claim in the trust deed and will be dealt with by the Trustee.

Mark

Thanks Mark, advice is much appreciated

should the trustee not already know who is claiming what? A 30k additional debt will fairly dilute dividends to all the other creditors!!!

Paul

Ideally plasticdaft, but sometimes unpredicted things come to light later.

A liability following a tax investigation seems to fit in that category.