How we got three years of returns filed for an East Street trader, HMRC estimate cut by £14,000
Client A runs a fruit, veg and household-goods stall on East Street Market that had grown over the years, but the owner had fallen behind on self-assessment and hadn't filed for three years. HMRC had issued estimated assessments of around £19,000 plus penalties, far above the actual modest profits of a market stall.
We did emergency triage. We reconstructed three years of trading from bank records, stall-rent receipts and supplier invoices, prepared and filed the three returns showing the actual profits (far lower than HMRC's estimates after legitimate costs, stock, stall rent, transport, storage, packaging), and wrote to HMRC requesting reduction of the late filing penalties on reasonable-excuse grounds. We arranged a Time to Pay arrangement for the genuine tax due.