We didnt file a tax return in 4 years

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I know we're going to get so much flak for this but basically, my other half had a business for 4 years, and didn't keep accounts or anything or do a tax return at all. We were very disorganised and we are no longer in business but we would strongly like to resolve this as soon as possible. I don't care about the fines, we will pay it back etc but we have no idea where to start. We have records on his bank account of what he was paid for items etc and we also have receipts. Will this just be a case of a putting the accounts together and submitting them to hmrc and then obviously waiting for the outcome?  I'm really concerned about what is going to happen here. We are struggling on his wage of 330 a week and we're not claiming ctc for this reason. I know it was wrong of us to neglect our financial affairs like this but some constructive advice would be welcome here. Will we be taken to court? Will he be arrested? Thank you. 

Replies (7)

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By SteveHa
08th Dec 2016 16:17

Make a voluntary disclosure to HMRC now. Even if you don't have the figures ready, tell them exactly what you have told us and give them a timescale when you expect to have figures available.

By doing so voluntarily, you will minimise penalties that may be charged.

He won't end up in court, and he won't be arrested. And if he shows a genuine willingness to bring matters up to date, he may even get away with no penalties (though of course any tax, National Insurance and interest payable will have to be brought up to date).

Don't wait for HMRC to find out for themselves, penalties can increase significantly if they do.

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Stepurhan
By stepurhan
08th Dec 2016 16:35

You know you have been foolish, and freely admit it. That is a big first step, and one that does you credit. It's those that are just looking for free advice and won't admit they are out of their depth that merit getting flak.

Stelacca has already covered all the important points. Get an accountant would be typical advice, but it sounds like you genuinely can't afford one. If you struggle, Citizens Advice Bureau will often have an accountant available to help out. Worth enquiring at your local CAB in any case.

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abc
By Kim Jong Un's Hair
08th Dec 2016 16:51

For £329.99 per week I will manage this case for you.

Ok, that's a little cruel.

Speak with the tax helplines already detailed above. Basically the route you'll be taking is a late notification which triggers a tax geared penalty and then you will have three months to file - otherwise you will then get late filing penalties on top, too.

If it happens, as I am guessing, that the profits between you were under £20k per annum and you had no other income I think you can come out of this with no bill and a clean conscience.

I'd recommend you start compiling your figures as best you can ahead of this.

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Replying to Kim Jong Un's Hair:
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By Dr Gonzo
09th Dec 2016 10:39

[quote=Kim Jong Un's Hair

If it happens, as I am guessing, that the profits between you were under £20k per annum and you had no other income I think you can come out of this with no bill and a clean conscience.

Why £20k, she said her other half had a business, not they had a business. Whether there was a partnership or not is a question of fact. We don't know enough to know for sure there wasn't one, but from the content of the OP it doesn't appear so.

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By bumpdinkwhallop
08th Dec 2016 20:08

Google taxaid. Tele 0345 120 3779

http://taxaid.org.uk/guides/taxpayers

They will help low income taxpayers (defined as earning less than £380 a week)

They will advise exactly what to do, who to contact, what returns to file and assist with any late filing penalty appeals.

Good luck

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By SteveHa
08th Dec 2016 22:24

Tax geared penalties for late notification are a thing of the past, if you believe HMRC's hyperbole. I've made four year old disclosures for new clients with zero penalties.

The first step is, tell HMRC that you've been a bad boy, and then cooperate all the way.

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By cliveth
09th Dec 2016 08:34

You can make a disclosure online which may reduce the amount of penalty (or eliminate!)

https://www.gov.uk/government/publications/hm-revenue-and-customs-disclo...

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