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Not submitted a self assessment for 10 years

I am self employed for 10 years but have never submitted a SE or accounts or paid any tax.

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I am self employed for 10 years but have never submitted a Self Assessmant or accounts or paid any tax. It was always something I meant to do but just never got round to it. I have earned circa £800, 000 over the last 10 years. What should I do now? Go bankrupt or come clean to the tax man and try and pay the back tax? I do not own any assetts. 

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By cheekychappy
16th Dec 2016 07:20

You've earned £80k a year, with no tax paid and do not own any assets?
Not only are you a tax evader, you're stupid.

Buy some lube, I've heard prison is painful.

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By taxguru
16th Dec 2016 07:19

You're asking this question on here, I think, to have some peace of mind hoping someone would support your inaction, unlikely though. You ought to bring your tax affairs up to-date.

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Red Kite
By Red Kite
16th Dec 2016 08:14

If you're looking for an honest answer I'd suggest seeking the services of a professional accountant who will guide you through the process.

As you say, you've no assets, even though, you also say, you've generated around £80,000 on average, each year, for the last ten years.

Really, what have you to lose?

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By bernard michael
16th Dec 2016 09:42

Are you still generating the same income ??

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By lesley.barnes
16th Dec 2016 09:57

If this isn't a wind up you need to employ an accountant. My worry is that you say you've no assets and are considering bankruptcy therefore can you afford an accountant? If you need free advice I would speak to the CAB about your options.

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By JCresswellTax
16th Dec 2016 10:09

Come clean, which will result in bankruptcy and then start again with a clean slate and clear conscience.

What did you do with the £800k? Party it all away?

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Replying to JCresswellTax:
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By Accountant A
16th Dec 2016 11:13

JCresswellTax wrote:

then start again with a clean slate and clear conscience.

If someone has deliberately avoided paying hundreds of thousands of pounds of tax, I'm not sure they should have a "clear conscience". More likely they don't have any conscience.

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By stratty
16th Dec 2016 10:19

You need an insolvency practitioner.

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Stepurhan
By stepurhan
16th Dec 2016 10:49

You "just never got around" to declaring and paying tax on £800,000 of income.

What sort of answer were you expecting to such a declaration? You are a serial tax evader. It is no accident that you have not filed returns, nor is it an accident you've spent the money that should have paid the tax due.

I have zero sympathy for you. I hope you get the book thrown at you.

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Portia profile image
By Portia Nina Levin
16th Dec 2016 10:57

I understand, from a reliable source, that, under a new HMRC initiative, people that have failed to declare taxability for periods in excess of 9 years are now routinely being shot on sight?

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Replying to Portia Nina Levin:
By JCresswellTax
16th Dec 2016 11:00

Yeah, mostly, but you forgot about the 8,060 exemption.

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By SteLacca
16th Dec 2016 11:00

"Earned £800,000" in 10 years does not necessarily equate to taxable profits of £800,000. For all we know there are £700k of allowable expenses in the same period.

Not enough info to provide a realistic response.

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Replying to SteLacca:
Stepurhan
By stepurhan
16th Dec 2016 11:11

SteLacca wrote:

"Earned £800,000" in 10 years does not necessarily equate to taxable profits of £800,000. For all we know there are £700k of allowable expenses in the same period.

Not enough info to provide a realistic response.

Good point.

That doesn't alter the idiocy, but at least (potentially) reduces or eliminates the possibility they frittered the money away without caring about the tax due.

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Replying to SteLacca:
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By veecee1987
16th Dec 2016 14:42

Correct, bottom line I probably retained earned £30-£35k a year before any personal allowances. Some of the past 10 years were spent outside of the EU, about 4 years but I assume I still should of sent in a tax return?

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Replying to veecee1987:
Stepurhan
By stepurhan
16th Dec 2016 15:02

veecee1987 wrote:

Correct, bottom line I probably retained earned £30-£35k a year before any personal allowances. Some of the past 10 years were spent outside of the EU, about 4 years but I assume I still should of sent in a tax return?

Possibly not correct. It depends if the expenses you are deducting to reach this are tax deductible or not. Depending on the detail, your time outside the EU may or may not affect your liability to UK tax.

Your choices are consult (and pay) an accountant, who will seek to get the best result for you, throw yourself on HMRC's mercy (you might get lucky, but I wouldn't bet on it) or go bankrupt (which HMRC might force you into anyway).

Whilst not the excesses of £80k a year, £30 to £35k is still a fair chunk of money to live on compared to many. It's above the average UK salary last year, and that's not the amount people get in their pocket (having actually paid their tax through PAYE). You are still not a sympathetic figure.

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Replying to SteLacca:
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By veecee1987
16th Dec 2016 14:52

Correct, bottom line I probably retained earned £30-£35k a year before any personal allowances. Some of the past 10 years were spent outside of the EU, about 4 years but I assume I still should of sent in a tax return?

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Hallerud at Easter
By DJKL
16th Dec 2016 11:05

There may well be a casual link between your non disclosure and the belief, mainly within government circles, that MTD will cure all ills, close the tax gap, cure the infirm (a pocketful of miracles, to quote 10cc) etc.

So, MTD is obviously your fault, expect no sympathy here!!!!!!

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By The Highlander
16th Dec 2016 11:09

Does self assessment not only become compulsory from year 10 onward?

I'm pretty sure that's right.... something about it being a phased registration.... Dave down the pub definitely mentioned something about the first 10 years being merely voluntary contributions, I'm sure that right! Here's a link I found on the subject:

https://www.gov.uk/voluntary-national-insurance-contributions/who-can-pa...

Have you considered Australia? I believe it's very nice at this time of year.

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Out of my mind
By runningmate
16th Dec 2016 11:57

Don't forget VAT.

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By Briar
16th Dec 2016 13:34

If Aweb have your name and address (how else would you get to ask this question?), should not Aweb report you for committing a criminal offence?

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Replying to Briar:
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By Manchester_man
16th Dec 2016 14:41

Pretty sure they don't have my address.
Presumably they have yours then?

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Replying to Manchester_man:
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By Briar
16th Dec 2016 23:37

I am sure that they can find it if they try.

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Replying to Briar:
David Winch
By David Winch
16th Dec 2016 15:01

Briar wrote:

If Aweb have your name and address (how else would you get to ask this question?), should not Aweb report you for committing a criminal offence?


Why?
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Replying to davidwinch:
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By Briar
16th Dec 2016 23:35

Why not? It will reduce the "tax gap"

I love it when David gets involved!

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Replying to Itzhak Stern:
By Ruddles
16th Dec 2016 19:37

£70k in penalties? Hogwash

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Replying to Ruddles:
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By paul_scotland_5
16th Dec 2016 20:36

Thought that myself ...

Some might negotiate 30% ... then same some might blame some '3rd party bookkeeper' and mitigate down to 15% or even nil ... maybe

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Replying to Itzhak Stern:
By Ruddles
16th Dec 2016 23:22

Hogwash.

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Replying to Ruddles:
Tornado
By Tornado
17th Dec 2016 12:34

First pigs, then bulls ... what next!

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Replying to Tornado:
By Ruddles
17th Dec 2016 12:49

Yet another ban, I suspect

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Replying to Itzhak Stern:
By Ruddles
17th Dec 2016 16:13

.

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Replying to Itzhak Stern:
By Ruddles
17th Dec 2016 16:18

"And how do we find out if she is made out of wood?" "Build a bridge out of her."

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Replying to Itzhak Stern:
By Ruddles
18th Dec 2016 11:06

..

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My photo
By Matrix
16th Dec 2016 20:47

Now that I understand agents can be blacklisted there is no way I would touch this kind of work.

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Replying to Matrix:
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By pacta
16th Dec 2016 21:55

Eh!?

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By bernard michael
17th Dec 2016 11:14

The OP hasn't yet said what prompted this sudden desire for penitence or self immolation
I wonder is receipt of a brown envelope involved ??

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Tornado
By Tornado
17th Dec 2016 11:19

Personally I am thinking this is a wind-up.

I cannot see how anyone could trade for 10 years without someone picking up on the trading activities and making enquiries, whether those activities had been deliberately concealed or not.

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