CIS | Hendon
Two Years Behind on Tax Returns? A Calm Catch-Up Guide for Hendon Subcontractors
It starts with one missed January. Then the letters begin, each scarier than the last, and the natural response is to stop opening them. We meet Hendon and Colindale subbies every month who are two or three years behind, convinced they are facing ruin. Almost every time, the reality is far better than they fear, and often HMRC ends up owing them.
What the penalties actually are
- 1 day late: £100, automatic, even if no tax is owed.
- 3 months late: £10 per day, up to £900 more.
- 6 and 12 months: a further £300 (or 5 per cent of tax due) at each point.
So a single year that is fully 12 months late can carry around £1,600 of filing penalties. Frightening, but two facts change the picture for CIS workers. First, refunds can still be claimed for up to four prior tax years, and CIS subbies are usually owed refunds. Second, penalties can be appealed where there is a reasonable excuse, and reduced in other cases.
How a catch-up actually runs
- Week 1: we become your agent, see your HMRC record, and learn exactly which years are demanded and what is charged so far. The unopened letters stop mattering; the record is the truth.
- Weeks 1 to 3: records rebuilt per year from deduction statements, bank statements and contractor history. Missing statements get chased or reconstructed.
- Week 3 to 4: all years filed together, refunds computed, penalty appeal submitted with evidence where grounds exist (illness, bereavement, family crisis, genuine confusion about obligations can all qualify).
- Weeks 6 to 12: HMRC processes; refunds are set against surviving penalties and the balance lands in your bank.
The most expensive furniture in Hendon
A plasterer working Hendon Waterside phases came in with what he called the drawer of doom: two years of unopened post following a family illness. Combined refunds £6,100, daily penalties cancelled on appeal with medical evidence, balance in his account inside ten weeks. His words: the drawer was the most expensive furniture he ever owned.
Start with the refund calculator for a per-year estimate, then see CIS accountant in Hendon for the local service.
Frequently Asked Questions
Will I go to prison?
For late returns, no. Criminal cases involve deliberate fraud, not lateness. The system for late filers is penalties and interest, and both can be reduced. The worst outcome of doing nothing is financial, and it grows.
What counts as a reasonable excuse for the appeal?
Serious illness (yours or close family), bereavement, fire or flood, genuine system failures, and similar life events around the deadlines. Being busy or forgetting rarely succeeds alone, but partial reductions are still often achievable.
I cannot find my old deduction statements. Is it hopeless?
No. Contractors must keep CIS records and most provide copies on request; bank credits evidence the payments; and HMRC's own systems show deductions reported against your UTR once we are your agent.
Can HMRC take money from my wages or bank account?
Enforcement only begins after demands are ignored for a long time. Engaging, filing and setting up arrangements stops the escalation immediately. In most catch-ups the refunds wipe the debt anyway.
Should I file the oldest year first or all together?
Together. HMRC reconciles the whole account at once, refunds offset penalties across years, and one clean submission looks far better than a dribble.
What if I genuinely owe tax I cannot pay?
A Time to Pay arrangement spreads it over monthly instalments. Set up before the surcharge dates, it avoids the extra 5 per cent penalties entirely.
How far back can HMRC demand returns?
Where notices to file were issued, those years stand until filed or withdrawn. Where no notice existed, the position is more nuanced; we review your record and tell you exactly what is genuinely required.
Will this affect my mortgage application?
Unfiled years block mortgages anyway because lenders need SA302s. Catching up unlocks them; most lenders are satisfied once the returns and payments are in order.
Got a drawer of unopened HMRC letters in Hendon?
Bring the drawer. Free 15-minute call, a calm look at your record, and a fixed quote to make the whole thing go away.
Or email info@yourtaxhelp.co.uk | CIS accountant in Hendon
General guidance only. Not personal tax advice. Contact us for advice specific to your situation. Figures relate to the 2025/26 tax year unless otherwise stated.