Can a Bedford Accountant Help Me if I’ve Fallen Behind on My Tax Returns?

At Towerstone our team delivers accountancy services in Bedford for day to day support plus long term planning. This piece on Can a Bedford accountant help me if I’ve fallen behind on my tax returns? is worth reading if you want to understand how to get back on track quickly and what information helps an accountant clean things up properly.

Falling behind on your tax returns can feel overwhelming. From experience I know it often starts innocently enough. A busy year. A personal issue. A business that grew faster than expected. Before you know it you are one return behind then two then several years start to stack up. At that point many people stop opening HMRC letters altogether because the situation feels too big to deal with.

The short answer is yes a local accountant can absolutely help if you have fallen behind on your tax returns. In fact this is one of the most common reasons people reach out for professional help and I have to be honest, I really enjoy working on several tax years in one hit. I love the aftermath where you deliver final tax bills to the client which are almost certainly less than the determinations sent by HMRC.

I have seen sole traders, landlords, company directors and even people with very simple tax affairs get themselves stuck simply because they did not know where to start or were worried about the consequences.

In this article I want to explain clearly how an accountant can help you get back on track what the process usually looks like what HMRC expects and what you should realistically prepare for. I will also share what I see in real life when people finally take action and why dealing with the problem sooner rather than later almost always leads to a better outcome.

This guide is written for anyone who is behind on their UK tax obligations and wants clear practical advice without judgement or jargon.

Understanding what it means to be behind on your tax returns

When people say they are behind on their tax returns they can mean different things. From my experience it usually falls into one or more of these situations.

You may have missed one or more Self Assessment tax returns. This is common among self employed individuals landlords and company directors who take dividends or have other personal income.

You might have registered for Self Assessment but never actually submitted a return.

You could be several years behind and unsure exactly which years are outstanding.

In some cases people are also behind on VAT returns corporation tax returns or PAYE submissions alongside their personal tax.

HMRC does not automatically forget about missing returns. Even if you have not traded for a while or think you do not owe anything HMRC still expects a return if you were required to file one. Penalties and interest continue to build until the situation is resolved.

What I often see is that people assume the problem will somehow go away or that contacting HMRC will make things worse. In reality silence is what causes the biggest issues. Once HMRC flags someone as non compliant it becomes harder to negotiate penalties and time to pay arrangements.

Who this situation usually affects

Falling behind on tax returns is far more common than many people realise. It is not limited to people who are careless or dishonest. In my opinion it is often the opposite. It tends to affect people who are trying to do the right thing but feel out of their depth.

Self employed individuals are the most common group. Many start trading without fully understanding Self Assessment deadlines or record keeping requirements. Others stop trading but forget to tell HMRC.

Landlords frequently fall behind especially accidental landlords or those with one property who did not realise rental income must be declared even if profits are small.

Company directors are another group I see regularly. Once dividends benefits in kind or director loan accounts come into play personal tax returns become more complex.

People with multiple income sources can also struggle. Employment plus rental income plus side work can quickly push someone into Self Assessment without them fully realising it.

Life events play a huge role too. Illness divorce bereavement mental health struggles and caring responsibilities are all common triggers for missed returns. HMRC recognises this in some circumstances but only if the issue is addressed.

How an accountant actually helps when you are behind

One of the biggest misconceptions I encounter is that an accountant will judge you or tell you off. In reality most accountants see this situation every week. The role is practical not moral.

The first thing an accountant will usually do is establish exactly where you stand. This means confirming which tax years are outstanding and what HMRC believes is missing. Often HMRC records are incomplete or based on estimated figures so clarification is essential.

Next comes gathering information. This can feel daunting but it is usually more manageable than people expect. Bank statements invoices rental records P60s P45s and dividend vouchers are often enough to reconstruct past years.

An accountant will then prepare the outstanding returns in the correct order. This matters because later years often depend on earlier figures such as losses or allowances.

Once the returns are submitted the true tax position becomes clear. This is a critical moment. Many people fear a huge tax bill only to discover they owe far less than expected or sometimes nothing at all.

If tax is owed an accountant can help you communicate with HMRC to arrange a payment plan. Time to Pay arrangements are very common and HMRC is generally reasonable if you are proactive and realistic.

Where penalties have been charged an accountant can also review whether there are grounds for appeal. Reasonable excuse arguments do succeed in certain cases particularly where health or serious personal issues were involved.

How the process usually works step by step

Although every case is different the process tends to follow a similar pattern.

First there is an initial review. This involves discussing your situation openly and honestly. From experience I can say that transparency at this stage saves time money and stress later.

Next your accountant will contact HMRC if necessary to confirm outstanding obligations. This might include requesting statements of account or agent authorisation.

Then comes the reconstruction phase. This is where past records are pulled together and missing information is estimated where allowed under HMRC rules. Many people worry they do not have perfect records but HMRC accepts reasonable estimates if they are clearly explained.

Once the figures are prepared the tax returns are submitted. At this point penalties and interest are recalculated based on actual data rather than estimates.

Finally the focus shifts to resolution. This might involve setting up a payment plan appealing penalties or simply closing the Self Assessment record if it is no longer needed.

What matters most is momentum. Once the first return is done the rest usually follow more smoothly.

Real world examples I see in practice

One common scenario involves a sole trader who started freelancing alongside employment. In the first year, income was modest so tax felt negligible. A return was missed. In the second year, income increased but by then the fear of dealing with the first year stopped them acting. By year three HMRC had issued estimated assessments far higher than the real figures. Once proper returns were filed the tax bill dropped significantly and a manageable payment plan was agreed.

Another example is a landlord who inherited a property. Rental income covered the mortgage but profits were low. Several years went undeclared because the individual believed tax only applied once cash was taken out. In reality rental profit is taxable regardless of cash flow. Once the position was corrected penalties were reduced and the ongoing compliance was straightforward.

I also regularly see directors who assumed company tax and personal tax were fully separate. Dividends were taken but never reported personally. Once corrected the tax due was clear and no further issues arose.

In all these cases the biggest obstacle was not the tax itself but the fear of facing it.

HMRC rules and compliance considerations

HMRC expects Self Assessment tax returns to be filed by 31 January following the end of the tax year if filing online. Missing this deadline triggers an automatic £100 penalty even if no tax is owed.

Further penalties accrue at three six and twelve months. Interest is charged on unpaid tax from the original due date.

If returns remain outstanding HMRC may issue estimated assessments. These are often deliberately high to prompt action. They are not final but they must be replaced with real returns to be removed.

There is no fixed limit on how far back HMRC can ask for returns in cases of failure to notify. However in practice HMRC usually focuses on the last four to six years unless there is evidence of deliberate behaviour.

An accountant understands how to work within these rules and how to communicate effectively with HMRC to avoid escalation.

Costs involved and financial impact

Many people worry that hiring an accountant will be expensive on top of existing tax problems. In reality professional fees often save money overall.

Preparing multiple years of returns does cost more than a single return. However it is usually far cheaper than continuing to incur penalties interest and stress.

More importantly accurate returns prevent HMRC estimates which are often far higher than the real liability.

Payment plans spread the cost over time making it manageable. In some cases penalties are reduced or cancelled entirely which can offset professional fees.

From a longer term perspective getting back on track allows you to plan properly rather than constantly reacting to HMRC letters.

Alternatives to using an accountant

It is technically possible to submit late returns yourself. HMRC’s online system allows backdated filings in many cases.

However I have seen many people struggle with this route especially where records are incomplete or multiple years are involved. Mistakes can lead to further correspondence and delays.

Another option is to contact HMRC directly and explain the situation. This can work for very simple cases but once calculations are involved professional representation often leads to better outcomes.

In my opinion the more years involved or the more complex the income the more valuable an accountant becomes.

Practical advice if you are behind on your tax

The most important step is to stop waiting. The problem does not improve with time.

Gather whatever records you have even if they feel incomplete. Bank statements are often the most powerful starting point.

Do not guess or submit figures just to get something filed. Incorrect returns can cause more issues later.

Be honest with your accountant and with HMRC. Surprises are what create problems.

Focus on resolution not blame. HMRC is concerned with compliance not punishment in most cases.

Once you are back on track put systems in place. Simple bookkeeping regular reviews and reminders prevent the issue recurring.

Why local support can make a difference

Working with a local accountant often makes the process less intimidating. Face to face conversations or direct contact can help rebuild confidence and understanding.

A Bedford accountant will also be familiar with the types of businesses and individuals in the area which can make explanations more relatable and advice more practical. Local knowledge is not about bending rules but about understanding real world contexts.

Most importantly having someone in your corner changes how the situation feels. From experience I can say that once people hand the problem over and see progress their stress levels drop dramatically.

Looking ahead after you are back on track

Once outstanding returns are dealt with the focus should shift to the future. Staying compliant going forward is far easier than catching up again.

This might involve deregistering from Self Assessment if it is no longer needed or setting up quarterly reviews if income is ongoing.

It may also be an opportunity to plan better. Tax planning cash flow forecasting and understanding allowances can all reduce future liabilities.

In my opinion falling behind on tax returns is not a failure. It is a signal that support or structure was missing at the time. Addressing it properly often leads to better financial habits and stronger businesses.

The key takeaway

If you are behind on your tax returns you are not alone and you are not beyond help. I have seen people come back from far worse situations than they imagined possible.

A Bedford accountant can absolutely help you understand where you stand fix what needs fixing and move forward with confidence. The hardest part is making the first move. Once you do the path ahead usually becomes much clearer.

The key is action. The sooner you face the issue the more options you have and the better the outcome is likely to be.

To continue reading you may find Avoid These Costly VAT Errors: Bedford Accountants Expose Common Pitfalls and How to Choose the Right Accountant for Your Business in Bedford helpful. You can also browse all related guidance in our Bedford Accounting Hub.