Need advice on not declaring.....

smiddy_2

Hi guys, first post here. OK i want to come clean to HMRC about my second income but TBH i am really worried about what is going to happen. I am aware how silly it has been not to declare but i did not think i would be doing it for more than a few weeks/months. This is how it is;

I started trading about 30 months ago (July 2006) and what started off as a very small second income and originally very short in time scale quickly became regular and the money earned began to increase. I have just added up my total earned and the figure is £38,110 over the 30 months. Tax at 22% means i owe approx £8400, is this correct? P.S. I earn £16k (fully taxed etc) on my full time job so would i be a higher rate tax payer?

Another thing that i must mention is i trade a high value item and my turnover for the past three months has been just over £40,000. Now, i understand i must pay VAT if my turnover is £67,000 per year? It is only in the last 6-9 months i reckon my turnover has been into VAT territory so what happens there? Is it a rolling 12 months?

Basically guys i am worried sick about this - i have no problems declaring but i am panicking about the fines they will impose etc but it is something i know i need to/will do. Any advice will be hugely appreciated.

johnllew

Go see an accountant as soon as you can. They will prepare your accounts for you and negotiate on your behalf with HMRC. Be prepared to pay the tax, interest and a mitigated penalty. The sooner you act, full cooperation, and your voluntary disclosure will help to reduce the penalty.

smiddy_2

OK thankyou where would be the best place to get hold of an accountant?

johnllew

IIWY I'd ask around locally for good recommendations, get interviews with three or four (often the first half-hour is free) and go with the one that impresses most.