How could you deal with this one?

mc25 Registered Posts: 232 Dedicated contributor 🦉
Potential client who hasn't declared other income from 2007 want to file all the accounts this year. Can I file all the figures (income + expenses) in 2009/2010 accounts or is there another better way of dealing with this from those who have got plenty of experience. I know you incurr fines if you dont let HMRC know within 3 months. My question is if I was to act on behalf of the client which will be the best approach to take to avoid the penalties but do it correctly?

Any ideas will be highly appreciated. Thanks


  • Monsoon
    Monsoon Registered Posts: 4,071 Beyond epic contributor 🧙‍♂️
    Is he behind in his tax returns?

    The only way is to amend the 2007 return. The only time when it's arguably ok to include prior years figures in this year's return is if it's immaterial.

    The best approach is to
    1) get a signed engagement letter
    2) get some money up front [this is probably the most important part]
    3) get all returns filed correctly

    By disclosing to HMRC yourselves, as opposed to them finding out, does mitigate the penalties. Are there extenuating circumstances why he didn't include this income?
  • mc25
    mc25 Registered Posts: 232 Dedicated contributor 🦉

    Mosoon, Thanks for your reply. As far as I am aware client not registered as self employed. I could say... from what he has said to me he wasn't sure on how to deal with the income as he did not anticipate to carry on receiving the income (from property he was intending to sell) back in 2007 but since then situation has changed and he is receiving income from it client want to submit all the returns and keep on top of it now.
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