Tax

[Joe C]

Hi guys, I've just introduced myself on the introduce yourself section. My names Joe and I suffer from GAD/OCD. After 3 years of therapy and CBT Im generally pretty calm and allow myself to think rationally.

However, for the past 4 years I've neglected to do any self assessments even though I'm registered self employed as a sole trader and buried my head in the sand, due to not earning a great deal of money. Im 24 and still live with my parents and have finally hired an accountant who Im seeing this week to sort it all out for me.

My irrational thought pattern keeps telling me Im going to go to prison for neglecting it all for 4 years. Even though deep down I know whats actually gonna happen is Im gonna be hit with financial penalties because number 1 I havent deliberately evaded paying tax and number 2 Im a relatively low earner therefore the HMRC will have bigger fish to fry.

Just seeking some reassurance from someone who knows what theyre talking about that I wont actually go to prison as long as Im sorting it all out now.:wacko:

[hungrycaterpillar]

It is highly unlikely you would go to prison! At worst, you will have to pay back what you owe... If anything. There may well be a fine for evading the returns however I am pretty sure you would be able to pay this off monthly, rather than all in one go.
Well done for getting an accountant and getting this sorted out.
I am currently sat avoiding doing mine!!!

[xhyperyogix]

Hi there!

I am also self employed. I comepletely hate this time of year. In fact I'm sat here now waiting for my accountant to call me back so I get it all going, and he's not getting back to me which is a pain!

Anyway, you wont get anything other than slapped wrists and maybe a fine. They even let you pay it back over some time if you are not earning too much. And also you may find you don't actually owe them much - last yr I got a rebate (money back - yippee!). Shame it wont be the same this year....

Hope that helps xx

Hyper xx

[Joe C]

thanks for the replies guys, very reassuring :yesyes:

[clc]

I'm an accountant! You might get late filing penalties infact you will. You won't go to prison and if you have been earning that much (annual allowance for this year is 7475 I believe) then you won't need to pay any tax.

You might want I explain your situation to HMRC an they may let you of the fines. I'm suprised thy haven't contacted you!

[Joe C]

they probably have clc, ive moved home and just buried my head in the sand :)

[mikewales]

Prison is incredibly unlikely, however they dont accept illness as a reason for not paying or filing returns. You will have to pay whatever is owed, plus some fines on top for the late filing.

I hate doing my SA, but always try and get it done nice and early so I know it is out of the way, it doesn't really take long, its just very boring !

[Joe C]

thanks for all your replies guys, rang the inland revenue today and theyre sending me my UTR number. No matter how many people tell me Im being ridiculous and Im not gona go to prison, im still terrified and my anxiety is awful today! Im really worried that because theyve proably been sending loads of correspondence to my old address and ive just ignored it all im gonna be in loads of trouble:wacko:

[Jamesk]

Joe, I am a tax accountant (a member of the Chartered Institute of Taxation) and you are not going to go to prison. There will likely be tax to pay and interest, and probably some surcharges, but I would be just astonished if anything more happened.

I am just bringing a client up to date who has six returns outstanding. Don;t worry and PM me if you need to.

Edit depending upon your trade there are some amnesties your advisor may be able to use around at the moment (I think not something I have had much to do with!)

[Joe C]

thanks James, your a star. What sort of Amnestys? Im a hairdresser :)

[william wallace]

You're no use to them if you're in jail mate. They want you clipping and trimming and making money.
You could always tell them, as we say in Scotland, " you cant take knickers off a bare arse":D

[Joe C]

haha, quality way to put it!