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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4330
Experience:  FCCA FCMA CGMA ACIS
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i have been self employed foe 12 years now. i have not paid

Customer Question

i have been self employed for 12 years now. i have not paid any tax or NI in this time. how do i go about correcting this.

Submitted: 3 years ago.
Category: Tax
Expert:  bigduckontax replied 3 years ago.
Hello, I'm Keith and happy to help you with your question. The news I have to impart you will not like, I fear.
As a self employed person you should have told the Inland Revenue as they were then, they merged with HM Customs and Excise to form HMRC some years ago, that you were working as self employed, in any event you should do that immediately. They would then have arranged for you to receive an annual form (these days it is a self assessment form) to declare your income and allowable expenses. On receipt of this form they would have sent you an assessment of tax and NI due for you to settle by the due date, these days it is 31 January in the year following the tax year to which the assessment applies.
If you have not done this then you are laying yourself wide open to penalties for failing to declare your income. These penalties can be quite high as you will see. It is your duty to declare any income upon which tax has not been paid, you cannot just wait until the authorities send you a form. You will find details of penalties available to HMRC here:
http://www.hmrc.gov.uk/dealingwith/penalties-hmrc-charge.htm
What you must do is to throw yourself on the mercy of HMRC, and I should warn you that mercy is in very short supply in that department, and then obtain the relevant forms for so far back, complete and submit same. The following on line link enables you to get forms back to the 10/11 tax year and download same. For periods prior to this your tax office will provide the relevant documents.
http://www.hmrc.gov.uk/contactus/staustellform.htm
I am so sorry to have to rain on your parade. I do hope I have helped point you in the right direction, however.