Help with Historical Unpaid Tax

Sportyrich2000

I owe tax from years gone by and really need some advice (preferably not opinions on my stupidity - because I already know!).  I haven't paid tax on extra income over the past few years and had the brown letter through my door this week from HMRC.  Long story short when I first started gaining extra income I tried to do my tax return and found it extremely complicated and left it until it was too late.  Then I did much the same the next year but then got worried and while I should have phoned the tax office I buried my head.  2 parent bereavements and a loss of main job that put me further into a downward spiral later I am in this terrible position - of my own doing I accept that.  So I have a tax debt spanning 7 years into the thousands.  I am desperate to clear it all and start afresh totally knowing I made huge mistakes and should have sorted it way back.  I accept the punishments coming my way.  But here's the thing - I am still finding some of this a mystery and need some questions answering:

1.  I have missed the deadline for this years self assessment registration but having had this brown envelope and immediately filled it in to let them know that I do indeed owe tax does that suffice for this year or do I need to do that AND a this year self assessment?  I want to pay the last years tax but not sure whether to lump it in with my historical assessment or have that as a separate entity
2.  Can I speak to someone face to face at the tax office to help me or do I have to get an accountant?  I am not sure I can afford the later but need help sorting all this out.  Will HMRC help me with it or are they hands off completely?  The letter I got today confirming that I need to now do my taxes is typically formal and official so doesn;t really offer much help.
3.  Do I put missed tax benefits on to the historical self assessment or this years new one?  i.e. Working from home payments for Covid; a new boiler I put in the house I rent out; landlord tax credits etc from the previous years not this one

I do expect to have many comments calling me various names (trust me I have called myself many of them over the years) but I am actually quite scared by this and very remorseful over what I have done.  I just need help to get it all done and solved.  What are my best options?

Dazed_and_C0nfused

1.  If you already complete Self Assessment returns what deadline have you missed?  And what "brown envelope"?

2.  In certain scenarios yes.  But it sounds like you need professional help, not HMRC.  They aren't accountants and don't complete tax returns for you.

3.  No, you cannot put things for the wrong tax year on the return you are completing now.  You can amend the 2020:21 return and make overpayment relief claims for 2018:19 and 2019:20.  Although the deadline for 2018:19 is fast approaching.

Sportyrich2000

1 The brown envelope is the one that essentially says we know you haven't been paying tax and we are now prompting you to pay up.

2 My problem here is that I want to speak to someone to help me sort it all out but am really not sure I can afford an accountant.  I have heard from other people that you can get a meeting with HMRC about it to advise you and help you but this may then be untrue


3 So claims for previous years to lessen the impact of this have to be put into previous years tax returns or claimed for late using a different set of forms?

Thanks for the thoughts so far, much appreciated!  I m genuinely remorseful and want to resolve it whatever it takes

The brown envelope is the one telling me they know I've not paid taxesand prompting me to do so. 

I am really doubting I can afford an accountant so bored that HMRC cutoffs answer some questions

Icequeen1

Sportyrich2000 said:

1 The brown envelope is the one that essentially says we know you haven't been paying tax and we are now prompting you to pay up.

2 My problem here is that I want to speak to someone to help me sort it all out but am really not sure I can afford an accountant.  I have heard from other people that you can get a meeting with HMRC about it to advise you and help you but this may then be untrue


3 So claims for previous years to lessen the impact of this have to be put into previous years tax returns or claimed for late using a different set of forms?

Thanks for the thoughts so far, much appreciated!  I m genuinely remorseful and want to resolve it whatever it takes

The brown envelope is the one telling me they know I've not paid taxesand prompting me to do so. 

I am really doubting I can afford an accountant so bored that HMRC cutoffs answer some questions

If you are are on a low income, the charity TaxAid might be able to help https://taxaid.org.uk/ 

penners324

Paying an accountant to help you sort this out will be far easier and very likely less costly than having hmrc decide to audit your tax (or lack of) affairs

Jeremy535897

This might be relevant:
https://www.gov.uk/government/publications/let-property-campaign-your-guide-to-making-a-disclosure/let-property-campaign-your-guide-to-making-a-disclosure

kinger101

penners324 said:

Paying an accountant to help you sort this out will be far easier and very likely less costly than having hmrc decide to audit your tax (or lack of) affairs

Having an accountant register as your tax agent would also go some way to showing them that you are taking this seriously.

On-the-coast

HMRC will answer simple questions and point you at relevant legislation, but fundamentally all they expect is for you to provide a list of earnings from various sources, list any taxes already paid, and details of allowable offsets.  If it seems "about right" to them they will except what  you say, but they will probably look at your case in some detail - however all of us can be subject to a random audit.
Given the complexity of the items you list in part 3 of your original post, you will surely benefit from the services of a paid accountant (as indicated above).  You can reduce the cost of the account by assembling in time order  per tax year all of your income, taxes paid and potential claimable expenses - with receipts for everything possible.

MalMonroe

Hi, Citizens Advice might be able to help - or at least the information on their website -

https://www.citizensadvice.org.uk/debt-and-money/help-with-debt/dealing-with-urgent-debts/dealing-with-income-tax-arrears/

This is what StepChange says - https://www.stepchange.org/debt-info/business-debts.aspx

I'd advise contacting one of the free debt help agencies - details as above - anyway, to see if they can help with your debt.

There's also https://www.nationaldebtline.org/

They can and will help you and they are all non-judgemental because they've heard it all before and have some good solutions.

I used StepChange so I'd always recommend them but they are all in the business of helping people who are in financial trouble. 

Please don't berate yourself any more - many of us have been in similar positions and we've asked for, and been given, help. 

There's no reason why you can't be helped. Just ask - and I'd recommend phoning rather than using a website because you get a much better response and it's personal and, in my case, I was allocated a dedicated adviser, which was brilliant. 

Obviously this is all my own experience and opinion but I hope some of it was helpful.