How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Sam Your Own Question

Sam
Sam, Accountant
Category: UK Tax
Satisfied Customers: 12814
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Capital Gains, CIS ask for Sam Tax
16196420
Type Your UK Tax Question Here...
Sam is online now
A new question is answered every 9 seconds

Hi, I went self employed about 3 years ago and havent

Resolved Question:

Hi,

I went self employed about 3 years ago and haven't filed a tax return in that time. I am now receiving debt collection letters for late self assessment fees, this is up to about £5-6k. I don't really know what to do, but realise I need to do something about the situation. The thing is in this time I have been paying a mixture of CIS and not paying any tax and this has been through a multitude of different umbrella companies. Any help with this going forward would be a great help.

Regards

John
Submitted: 9 months ago.
Category: UK Tax
Expert:  Sam replied 9 months ago.

Hi

 

 

Thanks for your question and asking for me.

 

The fact some of the income has had CIS deductions made - will mean that you do not owe as much as HMRC estimate you do.

 

But the first thing you need to do is

1) Contact HMRC and advise them that you are going to sort this out and can then give you a set period of time to do so, before pursuing this further and send you the tax returns you need

2) Gather all income details together from the CIS work you have done (you would have been provided with payment and deduction statements for each month or possibly week from each of the contractors you worked for and also all the details for the umbrella companies you have worked for. which I must advise may cause issue with HMRC as the use of umbrella companies in many instances have been deemed to be non compliant with HMRC legislation, and I imagine you have been under the impression that you have drawn "loans" rather than income, but you do need to gather details of all the monies drawn out.

3) Then gather together all the evidence of expenses you have incurred - so any health and safety wear (such as steel capped boots) or tools that you have purchased etc

4) Then split this into the appropriate tax years so you can complete the tax returns, and you may be best served in engaging a local accountant to undertake this for you, in which case, get onto this as soon as possible, so that when you make contact with HMRC you can advise this to be the case.

 

HMRC can then assess what you owe, and I am afraid there are likely to be penalties added due to the fact you should have addressed this 3 years ago, and there also may be Class 2 and 4 national insurance to pay.

If what the final figure is, you are unable to afford in one go, then ask HMRC to consider a payment plan for you to spread what you owe over a few months - a year.

But most of all don not worry, just start that ball rolling today, and do feel free to ask any follow up questions.

 

Thanks


Sam

 

 

 

3)

 

Customer: replied 9 months ago.

Hi Sam,


 


Is bankruptcy an option in cases like mine?


 


Regards


 


John

Expert:  Sam replied 9 months ago.

Hi John

 

Thanks for your response

 

You will need to talk to a debt service, as to whether this is viable (as this is not our remit - just UK tax) but this certainly could be an option- be it though a final one.

 

Thanks


Sam

Sam, Accountant
Category: UK Tax
Satisfied Customers: 12814
Experience: 26 HMRC expertise, PAYE, Self Assessment ,Residency, Capital Gains, CIS ask for Sam Tax
Sam and 2 other UK Tax Specialists are ready to help you

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
< Last | Next >
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
  • I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight. Bonnie Chesnee, SC
  • Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation. John Minneapolis, MN
  • Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with. Orville Hesperia, California
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex Los Angeles, CA
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP Hesperia, CA
 
 
 

Meet The Experts:

 
 
 
  • Andrew Baker(baktax)

    Personal Tax Adviser

    Satisfied Customers:

    756
    35+ years experience in income tax, CGT, non-residence
< Last | Next >
  • http://ww2.justanswer.com/uploads/baktax/2009-7-15_202414_Frame.jpg Andrew Baker(baktax)'s Avatar

    Andrew Baker(baktax)

    Personal Tax Adviser

    Satisfied Customers:

    756
    35+ years experience in income tax, CGT, non-residence
  • http://ww2.justanswer.com/uploads/teap007/2009-01-10_145815_bill_justanswer_for_profile.jpg TEAP007's Avatar

    TEAP007

    Tax Preparer

    Satisfied Customers:

    754
    Fully Trained Inspector of Taxes / District Inspector/ Team Leader/ Offshore Consultant/ 41 years
  • http://ww2.justanswer.com/uploads/BE/berduchwal/2011-6-7_84817_pict0854.64x64.jpg berduchwal's Avatar

    berduchwal

    Accountant

    Satisfied Customers:

    669
    Qualified accountant and bookkeeper running my own practice since 2008.
  • http://ww2.justanswer.com/uploads/JO/Josh2010/2012-4-29_19490_GettyImages80121770B.64x64.jpg Joshua's Avatar

    Joshua

    Lawyer

    Satisfied Customers:

    61
    LL.B (Hons), Higher Prof. Dip. Law & Practice
  • http://ww2.justanswer.com/uploads/RO/Ronaann/2012-3-19_23343_SSL22629.64x64.JPG Mrs-Tax's Avatar

    Mrs-Tax

    Tax Adviser

    Satisfied Customers:

    59
    Law Degree, 19 years in UK Tax.
  • http://ww2.justanswer.com/uploads/TG/TGraham12/2012-7-17_81212_bigstockBusinessHandshake508163.64x64.jpg Thomas's Avatar

    Thomas

    Solicitor

    Satisfied Customers:

    48
    Exposure to general tax issues
  • http://ww2.justanswer.com/uploads/struppiaml/2009-10-9_95150_anthony_business_002.jpg AnthonyL's Avatar

    AnthonyL

    Tax Adviser

    Satisfied Customers:

    19
    ATT, ATII, 12 years tax experience