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Outstanding Tax Returns

Client with Tax Returns for the last 10 years outstanding. What is the legal position?

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A new client has not submitted Tax Returns for the last 10 years. Basically, his artisan business suffered greatly from the recession that was around at that time. He was also depressed, and broke. He lost his residential accommodation at short notice and was reduced to sofa-hopping. He is now determined to get his affairs up to date. He has paid all the penalties raised upon him as he thought they represented tax due in lieu of a Return (yes, I know!).

What is the strict legal position regarding the outstanding Returns? His account with HMRC shows that they issued Returns for the years ended 05 April 2009 through to 05 April 2014. I think they gave up after that! 

I am also aware that he may have lost the opportunity to pay the Class 2 NIC and may be forced to pay Class 3.

All suggestions and replies are welcome. Thanks.

Replies (5)

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By Rammstein1
05th Mar 2020 08:48

I dealt with one of these where HMRC accepted paper Tax Returns going back to 2002.

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By Wanderer
05th Mar 2020 09:13

Was there tax due for those years? If not try to get HMRC to withdraw the requirement to complete.

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Replying to Wanderer:
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By sammerchant
05th Mar 2020 10:31

Yes, but there might also be (small) losses in some years. I am ore concerned about the penalties!

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Replying to sammerchant:
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By Wanderer
05th Mar 2020 10:59

Generally the best way to get the penalties cancelled is getting the requirement to file withdrawn.
I'd try this first, then move on to other options.

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By Michael Davies
05th Mar 2020 12:32

I had twenty years or so to do for a client.Send HMRC a spreadsheet detailing the income and liabilities;then carefully check their calculation of what is due.On my client,they taxed the tax liability and this is the amount they asked for.I felt I had to point out the errors of their ways.Client was not happy though,he thought he had a bargain !

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