Haven't filed Self-Assesment for 6 years, now desperate to get back on track

mertley

Hi everybody, I have finally dug my head out of the sand and am trying to resolve my financial worries.

I am self employed and have been for 10 years. The accounting has always been my weak point and I always had an accountant scan through my statements and work out my assesment for me. For 3 years this is how it was. After this I started having a loss of work, I support a family as a single income and I couldn't afford to pay my accountant. He kindly just ended up letting me off the fee but the next year rolled around and the guilt of not being able to pay him meant I just left it to myself to do.
I didn't do it and haven't since. I received some late payment fees and letters to get in touch and pay them the fines but I ignored them and they eventually stopped altogether.
I don't earn a lot and initially had no tax to pay but as work has got better I imagine I'm definitely in a bracket to pay.
So, I'm pretty scared and worried about the consequences, my first step has been to get sorted with the Government Gateway, see where I'm at (I'm waiting for my self assesment access code in the post). I have records of all my invoices and incomes but not complete records of my expenditures. I'm going to have to go back and work out my expenses from my statements.
I'm overwhelmed and looking for help on what to do first and how's best to tackle this. Whether I should complete my current self assesment and then work back through them or start at the year I missed and work forward.
Any advice or help would be life saving and much welcomed. I feel totally lost.
Thanks for reading.

Pennywise

Why not just go back to your previous accountant and ask them to do all the missing years? They'll already know you, have the prior information on file, so are best placed to sort it out for you.

If you can't do that, then you should appoint another accountant. The late filing fees, late payment penalties, and other fines could be massive and a decent accountant can help negotiate to reduce them, maybe even the reductions paying for their costs.

DigForVictory

+1 for the above - they'll be able to make better informed estimates, they know how you keep records and they can plead your case better than some stranger.

mertley

Thanks for the quick replies. I've emailed them but apparently they're no longer self employed and changed jobs I've made an appointment with Citizens Advice but I guess finding an accountant is the best idea?

00ec25

mertley wrote: »

TI've made an appointment with Citizens Advice but I guess finding an accountant is the best idea?

sorry but you are way beyond the point that Citizens Advice will have the technical competence to help you

there are 2 separate issues:

1. you have already incurred massive penalties for having not filed. Those apply whether you have any tax to pay or not (they are around £1,900 per year)

2. You may, or may not, have made losses in each year. You need an accountant to work out those losses and deal with them correctly as they could significantly reduce any tax you may still need to pay (but will not reduce the penalties in 1 above)

mertley

Should I just head straight to an accountant then? Should I call HMRC and explain or let HMRC be contacted by an accountant?

DigForVictory

If you can get a message to your old accountant asking advice on a replacement, excellent. Failing that, ask around as this individual is going to know your details rather thoroughly so you need to get along with them.
Start asking tonight. Every day will be held against you by the Revenue.

Pennywise

mertley wrote: »

Thanks for the quick replies. I've emailed them but apparently they're no longer self employed and changed jobs I've made an appointment with Citizens Advice but I guess finding an accountant is the best idea?

Assuming they were properly qualified/regulated, they'd have had a continuity agreement to carry on their trade/clients - they couldn't just "give up" without making alternative arrangements. If they don't respond, I'd suggest you contact their professional regulatory body (usually ICAEW or ACCA) to ask about the continuity firm who should have your files. (Or if they sold their clients, there'll be another firm out there somewhere with your files).

mertley

I've tried to email him though his old email has bounced back. I don't know where to turn. I'm desperate to resolve this but paralysed and overwhelmed. I need help.

whitewitch21

Like others have said, you really need to get yourself an accountant without delay. Do you have friends in the same profession who could recommend one? I would also find out how much you owe in fines and penalties so you know exactly where you stand, I would ring HMRC for this info rather than wait to get online passwords. I think its highly unlikely you will get anywhere appealing as you admit you have just ignored the returns but you might be able to make an arrangement to pay HMRC over a period of time. But again, call them asap and get the ball rolling before more fines accrue. Good luck.