How Do Accountants Help People Who Have Missed Previous Returns

Understanding the Consequences of Missing a Tax Return

When you miss a Self Assessment or company tax return deadline, HMRC automatically issues penalties and charges interest on unpaid tax.

For Self Assessment taxpayers:

• There is an initial £100 fine for missing the filing deadline, even if you do not owe tax.

• After three months, additional daily penalties of £10 can apply for up to 90 days.

• After six and twelve months, further penalties of up to 5 percent of the tax due can be added.

For limited companies, missing Corporation Tax deadlines can result in separate fines, plus potential interest on unpaid amounts.

The longer you delay, the more serious the consequences become. HMRC can estimate your income, issue a determination, or even begin enforcement proceedings.

An accountant can step in at any stage to deal with HMRC, file overdue returns, and reduce penalties where possible.

Step 1: Reviewing Your Tax Position

The first step an accountant takes is to review your overall tax position. They will ask for information such as:

• Your employment and self-employment history.

• Bank statements, invoices, and expense records.

• Details of income from property, dividends, or investments.

• Previous correspondence from HMRC.

If you have not kept full records, an accountant can help you reconstruct them from available documents such as bank data or business receipts. This ensures your returns are accurate and defensible if HMRC raises questions.

Step 2: Registering or Reinstating Your Tax Account

If you missed previous tax returns because you were not registered for Self Assessment, your accountant can register you with HMRC and set up your online account.

If your account has been suspended or closed due to inactivity, they can contact HMRC to have it reinstated and ensure that all missing years are available for filing.

Once HMRC reopens your tax records, your accountant can begin preparing and submitting the outstanding returns.

Step 3: Preparing and Filing Overdue Returns

After gathering the necessary information, your accountant will prepare your missing tax returns accurately and submit them electronically through HMRC’s system.

They will ensure:

• All income is declared in the correct categories.

• Eligible expenses and tax reliefs are claimed.

• Any underpayments or overpayments are calculated correctly.

• Returns are submitted in chronological order so HMRC processes them properly.

Filing all missing returns promptly shows HMRC that you are taking compliance seriously, which can reduce the likelihood of further penalties.

Step 4: Negotiating with HMRC

If you have received penalty notices or estimated tax bills, your accountant can contact HMRC on your behalf to negotiate a fair outcome.

They may be able to:

• Request cancellation or reduction of penalties under HMRC’s reasonable excuse provisions.

• Dispute incorrect assessments or determinations.

• Agree a Time to Pay arrangement if you owe tax and cannot pay it in full immediately.

Accountants understand HMRC’s processes and communication style, making it easier to resolve issues quickly and professionally.

Step 5: Claiming Reasonable Excuses and Penalty Reductions

In some cases, HMRC may agree to cancel or reduce penalties if you can prove there was a valid reason for missing deadlines. Accountants help present this evidence clearly and persuasively.

Valid reasons may include:

• Serious illness or bereavement.

• Technical problems with HMRC’s online systems.

• Reliance on incorrect advice.

• Circumstances beyond your control, such as postal strikes or natural disasters.

Your accountant can compile a written explanation, attach supporting documents, and submit an appeal to HMRC within the required time limits.

Step 6: Calculating and Managing Tax Payments

Once all returns are up to date, your accountant will calculate the exact amount of tax owed, including any interest. They will also identify any overpayments that could lead to refunds.

If you owe a significant sum, your accountant can help you manage repayment by:

• Arranging instalment payments through HMRC’s Time to Pay scheme.

• Forecasting future tax bills to prevent the same problem recurring.

• Helping you set aside regular savings for future tax obligations.

This forward planning gives you control over your finances and prevents future missed deadlines.

Step 7: Setting Up Better Record Keeping

One of the main reasons people fall behind with tax returns is poor record keeping. An accountant can help you put systems in place to stay organised.

They may recommend:

• Cloud accounting software such as Xero, QuickBooks, or FreeAgent.

• Spreadsheets or digital tools to track income and expenses.

• A filing system for invoices, bank statements, and receipts.

For business owners and landlords, this is particularly important with Making Tax Digital (MTD), which requires digital record keeping and quarterly updates in future.

Step 8: Ongoing Compliance and Support

After bringing your tax affairs up to date, your accountant will continue to support you with regular reminders, updates on tax changes, and preparation for upcoming returns.

They can:

• File future Self Assessment returns on your behalf.

• Provide quarterly or annual tax planning advice.

• Monitor your HMRC account for notices or upcoming payments.

• Handle all correspondence, so you never miss another deadline.

Having ongoing professional support ensures you stay compliant year after year and avoid repeating past mistakes.

How Accountants Reduce Stress and Risk

Dealing with HMRC can be intimidating, especially if you have missed several returns. Accountants reduce stress by taking control of the process and representing you professionally.

They can:

• Communicate with HMRC to prevent escalation.

• Explain your options in simple terms.

• Protect you from unnecessary penalties.

• Keep you informed of progress every step of the way.

Their expertise not only resolves immediate problems but also provides peace of mind for the future.

When to Seek Help

If you have missed one or more tax returns, it is best to contact an accountant as soon as possible. The earlier you act, the easier it is to limit penalties and interest. Even if HMRC has not yet contacted you, it is still your legal responsibility to file outstanding returns.

Accountants can help in situations such as:

• Missing multiple years of returns.

• Receiving penalty letters or payment demands.

• Losing business or personal records.

• Owing significant unpaid tax.

No matter how overdue your returns are, it is almost always possible to resolve the issue with professional help.

Summary

Missing tax returns can lead to fines, stress, and escalating problems with HMRC, but an accountant can help you get back on track. They gather your records, prepare and submit overdue returns, negotiate with HMRC, and reduce penalties wherever possible.

Once your accounts are up to date, they help you establish better systems and reminders so you never fall behind again. By working with an accountant, you can regain control of your finances, avoid further penalties, and stay compliant in the future.