Client became self-employed in 2006/07. HMRC issued tax return for year in June 2007, filing date Jan 2008.
Client had bad road accident in 2007/08 which effected his memory etc.
He had sufficiently recovered in 2011 to engage us to prepare his outstanding returns for 2006/07 to 2010/11, although he stills has problems with memory etc due to accident.
We prepared the returns from the records available and submitted them to HMRC.
The return for 2006/07 was not received by HMRC until 2 February 2012, which they are saying is not out of time, so cannot be processed. The return would have shown a liability of circa £4k.
However, HMRC did not raise any determination for this year, so the assessment for the year is £0.
I can see they are outside the time limit for raising a determination, but are there any other avenues they can go down to raise an assessment to collect this liability, or is it now lost forever?