Active discussions

Meet the Other Phone. Protection built in.

Meet the Other Phone.
Protection built in.

Buy now

Please or to access all these features

Talk
Money matters

Find financial and money-saving discussions including debt and pension chat on our Money forum. If you're looking for ways to make your money to go further, sign up to our Moneysaver emails here.

Original poster

Tax avoidance

73 replies

Misty8498 · 10/09/2024 17:26

I'm wondering if anyone can help my soon to be ex husband was with an umbrella company and HMRC caught him committing tax avoidance. It was 40k in 2021 and now increased to 80k does this sound right ? Also I don't understand how it's a rounded figure.
he wants me to pay half out of the marital home but was hoping for some advice would really be appreciated.

another question if I'm expected to pay half can I have access to his login details for HMRC the last statement he received was in 2023 and he did say it's hard to get paperwork of HMRC and his would he will flag everything up by asking ...

OP posts:
Bavariamaria · 10/09/2024 17:32

This is bananas. Do you have a solicitor?

If he was with an umbrella company they should have deducted PAYE and it is up to him to show you the paperwork via his payslips/contract/govt gateway account/correspondence from HMRC that they didn't.

But to be honest I wouldn't bother and would ask your solicitor for advice and go by what they say. Is he saying he underpaid tax by £40k and £80k? Those are massive amounts, what does he earn?

TheRavenSaid · 10/09/2024 17:37

he wants me to pay half out of the marital home

Why would you pay half? If you got a speeding ticket would he pay half of it from the marital home?

KnickerlessParsons · 10/09/2024 17:53

Tax avoidance isn't illegal. Do you mean tax evasion?

PureRed1992 · 10/09/2024 17:56

Check with your house insurance if you have legal cover for tax investigations..etc as they are usually really helpful and can get him sat down with a specialist solicitor/accountant who can help him fix this.

TinyYellow · 10/09/2024 17:58

He’s your ex but are you still married? Did you get a financial order in a divorce or does he still own half of the home?

CitizenZ · 10/09/2024 18:07

KnickerlessParsons · 10/09/2024 17:53

Tax avoidance isn't illegal. Do you mean tax evasion?

Umbrella companies often break tax rules. If you are found using a tax avoidance scheme under such a company, you’ll have to pay the tax that is legally due, plus interest and penalties.

RandomMess · 10/09/2024 18:27

He can pay it from HIS share of the marital home.

How much is his share isn't for him to determine.

TemuSpecialBuy · 10/09/2024 18:35

You can’t “commit tax avoidance“

tax avoidance is legal and compliant.
tax evasion not so much…

it sounds like there is back story / context and you don’t trust him (probably rightfully)

lots doesn’t add up…
it shouldn’t randomly double
it is highly unlikely to be such a nice round number.

id want to see this on the government portal NOT any print outs

do you have savings or assets that could be used rather than removing security around your house?

Cerialkiller · 10/09/2024 18:36

Is there a chance he could lying? I would want proof either way.

Yes it does sound very dodgy as the point of umbrella companies is that sort this kind of thing.

Is he a contractor working outside ir35? That's the only circumstances that this might happen as you would needs to self assess for the business.

Either way I don't quite see what this has to do with you. Is he claiming that because he spent that money on you/the house that he should get done back? Does he have any legal claim on the house currently? If not I would just ignore.

Also agree that that is a lot of tax and so I would be careful that he is paying everything he should be re child support or assets from the marriage (if he underestimated his income during the devorce)

I would ignore him most likely if he has no legal claim but especially so if he 'owes' you anything.

Badbadbunny · 10/09/2024 18:41

At the very, very, least you need to see proof of this debt, i.e. letters/statements from HMRC showing the liability and how it is made up.

Once you know it's genuine, you can then decide what to do about it.

Given the huge figures, he should have engaged a tax enquiry specialist to help check the details and figures etc., and mitigate the liability. So OP needs to ask to see the correspondence from the tax enquiry specialist too!

There's no way that anyone would even think of paying £40k or £80k without having it all checked over by a professional.

Original poster
Misty8498 · 10/09/2024 19:22

Thank you so much for your advice

OP posts:
SuperGreens · 10/09/2024 19:23

Speak to a lawyer you may not have any liability for his actions as a company director. But I don't know.

Original poster
Misty8498 · 10/09/2024 19:26

unfortunately my solicitor won't represent me anymore ( that's another story )

so you think I can ask for PAYE ect ?we are now going though mediation as our hearings didn't go through due to timing .
we have spent so much from the pot there isn't much left and I need to start over again he earns double my salary per month

thank you

OP posts:
Original poster
Misty8498 · 10/09/2024 19:28

I know feel totally lost

OP posts:
Original poster
Misty8498 · 10/09/2024 19:31

Bavariamaria · 10/09/2024 17:32

This is bananas. Do you have a solicitor?

If he was with an umbrella company they should have deducted PAYE and it is up to him to show you the paperwork via his payslips/contract/govt gateway account/correspondence from HMRC that they didn't.

But to be honest I wouldn't bother and would ask your solicitor for advice and go by what they say. Is he saying he underpaid tax by £40k and £80k? Those are massive amounts, what does he earn?

unfortunately my solicitor won't represent me anymore ( that's another story )

so you think I can ask for PAYE ect ?we are now going though mediation as our hearings didn't go through due to timing .
we have spent so much from the pot there isn't much left and I need to start over again he earns double my salary per month

thank you
OP

OP posts:
Original poster
Misty8498 · 10/09/2024 19:32

TheRavenSaid · 10/09/2024 17:37

he wants me to pay half out of the marital home

Why would you pay half? If you got a speeding ticket would he pay half of it from the marital home?

I know it's crazy

thank you

OP posts:
Shadowbox7 · 10/09/2024 19:32

What does your solicitor advise?

Original poster
Misty8498 · 10/09/2024 19:32

KnickerlessParsons · 10/09/2024 17:53

Tax avoidance isn't illegal. Do you mean tax evasion?

No it's tax avoidance

OP posts:
Original poster
Misty8498 · 10/09/2024 19:34

PureRed1992 · 10/09/2024 17:56

Check with your house insurance if you have legal cover for tax investigations..etc as they are usually really helpful and can get him sat down with a specialist solicitor/accountant who can help him fix this.

We don't have the house anymore so as far as I know there wouldn't be any house insurance

thank you

OP posts:
Original poster
Misty8498 · 10/09/2024 19:36

TinyYellow · 10/09/2024 17:58

He’s your ex but are you still married? Did you get a financial order in a divorce or does he still own half of the home?

Yes we are still married till financiers are sorted

OP posts:
JohnofWessex · 10/09/2024 19:39

You need a new solicitor

As far as I can see though its his debt not a matrimonial one

FusionChefGeoff · 10/09/2024 19:39

IANAL but the tax bill is a separate issue and for him to sort surely? If he'd spent £80k on a Porsche you wouldn't consider paying that off would you?

You need to agree the split of assets etc then he deals with his debts with whatever he is given?

Original poster
Misty8498 · 10/09/2024 19:40

Cerialkiller · 10/09/2024 18:36

Is there a chance he could lying? I would want proof either way.

Yes it does sound very dodgy as the point of umbrella companies is that sort this kind of thing.

Is he a contractor working outside ir35? That's the only circumstances that this might happen as you would needs to self assess for the business.

Either way I don't quite see what this has to do with you. Is he claiming that because he spent that money on you/the house that he should get done back? Does he have any legal claim on the house currently? If not I would just ignore.

Also agree that that is a lot of tax and so I would be careful that he is paying everything he should be re child support or assets from the marriage (if he underestimated his income during the devorce)

I would ignore him most likely if he has no legal claim but especially so if he 'owes' you anything.

I really don't know if his lying

he was self employed and it was going through his company which has been closed.

we are at the point with the mediation on who gets what ect

yes he is stating that I benefited from it

OP posts:
KnickerlessParsons · 10/09/2024 19:42

No it's tax avoidance

It can't be.

"Tax avoidance is when a person or company legally exploits the tax system to reduce tax liabilities, such as establishing an offshore company in a tax haven. Tax evasion is when a person or company escapes paying taxes illegally."

Alarae · 10/09/2024 19:43

So HMRC can levy penalties up to 100% of the unreported tax due depending on the behaviour of the taxpayer. For a 100% penalty, that puts your ex into 'deliberate and concealed' territory, which means he knowingly did it and knowingly kept it from HMRC.

Why should you have to pay for his poor behaviour? Regardless if your current solicitor won't represent you anymore, a demand for 40k is significant enough you should get another.

Look at this for the penalty range:

www.gov.uk/guidance/corporation-tax-penalties#penalties-for-inaccurate-company-tax-returns-documents-and-information