How Do Accountants Help People Who Have Missed Previous Returns

At Towerstone Accountants we provide specialist personal tax services, for self employed, and individuals across the UK. This article has been written to explain How do accountants help people who have missed previous returns, in clear practical terms, so you understand how personal tax and Self Assessment rules apply in real situations. Our aim is to help you stay compliant, avoid costly mistakes, and make confident tax decisions.

Missing tax returns is far more common than most people realise. In my own practice I speak to people every week who are carrying years of unfiled Self Assessment returns and a constant sense of worry about HMRC. Some have missed one year. Others have missed several. Almost all of them delayed dealing with it because they were unsure where to start or were afraid of making the situation worse.

The good news is this. Missing previous returns is very rarely the end of the road. HMRC deals with late and outstanding returns every single day and accountants like me are used to stepping in, taking control, and bringing things back on track.

In this article I want to explain clearly and honestly how accountants help people who have fallen behind. I will walk through what the process usually looks like, what information is needed, how penalties and interest are handled, and why dealing with it sooner rather than later almost always leads to a better outcome.

This is written from first hand experience, not theory, and with the aim of reducing fear rather than increasing it.

Why People Miss Tax Returns in the First Place

Before looking at solutions it helps to understand how people end up in this position. In my experience most missed returns are not about avoiding tax.

The most common reasons I see are:

• People becoming self employed and not realising they need to file

• Changes in income such as rental property or dividends being overlooked

• Mental health issues stress or illness

• Poor record keeping leading to paralysis

• Fear of a tax bill causing delay which then compounds the problem

Once one return is missed it becomes psychologically harder to deal with the next. Penalties start arriving letters are ignored and the situation snowballs.

By the time someone speaks to me they are often far more stressed than the actual tax position warrants.

The First Thing an Accountant Does

The very first thing I do when someone tells me they have missed previous returns is slow the situation down.

People often arrive expecting judgement or a lecture. That is not helpful. What matters is understanding exactly where things stand.

The initial steps are usually:

• Confirming which tax years are outstanding

• Checking whether HMRC is already aware and issuing penalties

• Understanding what income sources exist in each year

• Establishing whether HMRC has raised estimated assessments

This fact finding stage is crucial. Until you know the scope of the issue it is impossible to fix it properly.

Taking Over Communication With HMRC

One of the biggest immediate benefits of using an accountant is that we can deal with HMRC on your behalf.

Once authorisation is in place I can speak directly to HMRC, access your tax record, and see exactly what they are chasing. This alone often brings a huge sense of relief.

From that point:

• HMRC correspondence comes to me

• Deadlines and notices are monitored properly

• Conversations are handled calmly and professionally

• Incorrect assumptions or estimates can be challenged

People often tell me this is the moment they finally feel back in control.

Identifying What Actually Needs to Be Filed

A very common misunderstanding is that someone must file returns going back indefinitely. That is not always the case.

HMRC typically requires the last four tax years to be brought up to date although this can vary depending on circumstances.

Part of my role is to confirm:

• Which years HMRC legally requires

• Whether older years can be withdrawn or closed

• Whether registration itself was correct in earlier periods

Filing unnecessary returns wastes time money and emotional energy so this step matters more than people realise.

Reconstructing Records When Information Is Missing

Another major fear people have is that they no longer have all their paperwork. This is extremely common and it is rarely a deal breaker.

Accountants are used to reconstructing records from partial information.

This can include:

• Using bank statements to rebuild income and expenses

• Requesting duplicate statements or summaries

• Applying reasonable estimates where permitted

• Identifying allowable expenses people did not realise they could claim

The aim is not perfection. The aim is accuracy that is reasonable supportable and compliant with HMRC expectations.

Preparing and Submitting the Outstanding Returns

Once the information is gathered the actual preparation of the returns follows the same technical rules as any other year.

The difference is the sequencing and strategy.

Returns are usually prepared:

• In the correct order

• With consistency across years

• With explanations where figures fluctuate

• With care around loss claims or carry forwards

This reduces the risk of HMRC queries and ensures the position is as tax efficient as possible.

Dealing With Penalties and Interest

This is the part people worry about most and understandably so.

Late filing penalties and interest can look frightening on paper. However this is also where professional help often makes a real financial difference.

An accountant can:

• Check whether penalties have been applied correctly

• Appeal penalties where there is a reasonable excuse

• Request time to pay arrangements if needed

• Ensure interest is calculated accurately

I regularly see penalties reduced or cancelled entirely where HMRC accepts the circumstances or where errors have been made.

Negotiating Time to Pay if Tax Is Owed

If tax is owed HMRC does not automatically expect it all immediately.

One of the most valuable things an accountant does is help put a realistic time to pay arrangement in place.

This involves:

• Calculating the true liability

• Reviewing affordability honestly

• Proposing a payment plan HMRC is likely to accept

• Ensuring ongoing compliance to keep the arrangement in place

Handled properly this can turn an overwhelming bill into something manageable.

Preventing the Problem From Happening Again

Fixing the past is only half the job. Making sure it does not happen again is just as important.

I always help clients put simple systems in place going forward such as:

• Clear record keeping routines

• Diary reminders for deadlines

• Regular check ins during the year

• Better understanding of what needs to be reported

Confidence replaces avoidance and that changes everything.

Why Doing Nothing Is Usually the Worst Option

I am very direct about this because it matters.

Ignoring missed returns does not make them disappear. Penalties increase interest accrues and HMRC can eventually issue estimated tax bills or pursue enforcement action.

The longer the delay the fewer options are available.

Every single time someone has come to me late but willing to engage the outcome has been better than they feared.

My Professional Perspective

From my experience the hardest part for most people is making the first move. Once that step is taken the process becomes structured logical and far less frightening.

Accountants do not just fill in forms. We interpret rules communicate with HMRC rebuild records and protect you from making things worse through well meaning but incorrect actions.

Missed returns are a problem but they are a solvable one.

Key takeaways

If you have missed previous tax returns you are not alone and you are not beyond help.

The sooner you address it the more control you regain and the more options remain available. In most cases the reality is far less severe than the fear built up over time.

Speaking to an accountant is not about judgement. It is about drawing a line under the past and moving forward with clarity confidence and peace of mind.

You may also find our guidance on Can an accountant deal with HMRC on my behalf, and How do I check if I am owed a tax refund, helpful when reviewing related personal tax questions. For a broader overview of Self Assessment deadlines, reporting, and obligations, you can visit our self assessment guidance hub.