A friend of mine just asked for help with his personal tax return.
I've prepared his tax return for 2013/14 already, which was pretty straight forward.
The problem is he's been working as self employed since April 2012 but registered as with HMRC in Aug 2013 only.
He was hoping he can declare all his self employment income in coming Self Assessment for year 2013/14 (for both tax years).
Obviously if we do so his tax bill will be enormous.
Is there anyway to file backdated tax return for 2012/13 - so he can use his tax allowance for that year? If so does anyone know what sort of fine can be expected?
Those kindly people at HMRC will now estimate the penalties for you. They can afford to do this by virtue of the parsimonious penalties they impose, even where no tax is due.
If you can think of any reason at all that may mitigate the penalties, then don't hesitate in sending an appeal.
