Self employed client has not completed his tax or VAT returns for about 5 years.
Income is below the tax PA for those years.
Turnover is way below the VAT de-registration level.
Due to a very low turnover over each period, he wants to de-register from VAT. He currently owes approx £1800 VAT.
Does he have to submit each late VAT return, or can he do it on the next VAT return before de-registration?
He moved address some years ago and has not had his mail redirected - including VAT returns and Tax returns!
Can anyone suggest a way forward?
Bear in mind I have now completed the double entry book-keeping for the missing years, got a figure for the VAT outstanding but not (yet) done the VAT figures for each individual VAT period. Client believes he is now on £10 a day SA penalties.
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I understand that all returns have to be submitted before deregistration is considered.
The £1,800 liability will have to be spread correctly over the respective returns because it does not relate to errors on previously submitted returns.
He should avoid penalties for income tax returns up to 2009/10 on the basis that he has no liability.
He is correct that for 2010/11 penalties arise for non submission irrespective of the level of liability. It sounds as though he is still trading and cannot escape a penalty on the basis that he should not be in the self assessment regime at all. I'm assuming he has received notices to complete the returns.