Pay tax claim from HMRC?

Peterdad

Hello

I have a question about tax for the self employed. I spent a few years abroad and I thought I was even with HMRC. When I returned, I realised that they were giving me a bill for each year I was abroad. It looks like they are putting interest and penalties. It could also be that they made an estimate for the tax for each year. I was not filing tax returns (I did not owe tax in the UK for the time I lived abroad and when I was still in the UK I may have been under the threshold of liability) and I did not de-register as I was going to return. They say I owe filing accounts for 2 years.

I am going to argue it but, in order to avoid more interest and penalties (I might actually owe some tax) is it better to pay it first and then claim back what I overpaid or not? Will it take quite a while to get my money back?

Thanks

TheCyclingProgrammer

If you can show evidence to HMRC that you were no longer trading and had no UK taxable income in that period they may agree to rescind the notices to file a tax return for each year which would in turn eliminate the estimated tax bill, interest and the late filing penalties. This is your best hope.

If they do not agree to this you will have to submit the missing tax returns. This will get rid of the estimated tax bill and any interest due on that estimated tax but it will still leave you liable to the late filing penalties.