Can of worms client

A client who unfortunately is a personal friend has asked me to handle his affairs. Unfortunately he has, through both bad advice and management of his own affairs ended in a few sticky situations. I am regretting agreeing and feel awkward charging him the going-rate with a new birth to boot.

The latest such situation is:

Company submits VAT Returns right through to May 2011....

Last time Accounts were submitted.... Feb 2010... For the January 2009 Year End.

When questioned if it continued to trade, yes, obviously it had - it had submitted VAT Returns. He has no idea whether or not a notice to file a CT return has arisen and frankly it seems as though the problem has "disappeared" due to the size of the Company concerned.

Still, I wouldn't be doing my duty if I didn't arrive at a solution for him. I've looked into Administrative Restoration under CA2006 which is markedly cheaper than the Court Order route. Circa £125.00 + VAT apparently.. nice.

However, my question is will the Company incur late filing fees for the 31/01/2010 and 31/01/2011 Accounts which should have been submitted? Same question with the CT Returns I suppose.

This could make the solution rather expensive (I reckon the charges will exceed what I planned to charge him for tidying it all up.

Any help appreciated!