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bigduckontax
bigduckontax, Accountant
Category: Law
Satisfied Customers: 4199
Experience:  FCCA FCMA CGMA ACIS
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I am a sole trader and have not filled out tax returns

Customer Question

hi i am a sole trader and have not filled out tax returns for 10 years i have had a letter from the tax man wanting to see all my paperwork wich i havnt got wat i do have is all bank statments ,card statments and invoices for the last 6 years i no ihave dug a big hole but would like to climb out if possible
Submitted: 1 year ago.
Category: Law
Expert:  bigduckontax replied 1 year ago.
Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question. The American humourist Will Rogers originally coined the saying, 'If you're in a hole stop digging!' It is time to make peace with HMRC. What you need to do is firstly register with HMRC as self employed. The procedure is here: https://www.gov.uk/new-business-register-for-tax Then you will have to reconstruct annual accounts from the data available in your bank statements, card statements and invoices. Then you will have to make self assessment tax returns for each tax year and submit same. HMRC will charge you interest on late paid taxes and in addition may penalise you for failing to self assess in recent years. You may need the assistance of a trusted, local professional to reconstruct annual accounts and negotiate with HMRC. This could be an expensive exercise. If your turnover exceeds GBP 82K in any one year then you will have to register for VAT also and account for same. All in all you, either you or your minions, have much work to do to correct the position. I am so sorry to have to rain on your parade.