How to best avoid penalties for undeclared tax?
Due to a misunderstanding of how Personal Allowances work, I have not submitted Tax Returns for the last 4 years, despite realising now that I should have.
I am happy to pay the tax I owe but am decidedly less keen on the penalties/fines etc. What is the best way to go about it?
1. A tax accountant friend suggested filling out SA1 as 'I have been earning proeprty income since 06/04/12' - to avoid triggering any automatic late notification penalties - and then, after receiving my UTR, sending in the 4 comps and a cheque for the total amount due.
Is this sensible?
2. Is there any chance I will not receive penalties as I would be making an unprompted disclosure?