lost records

[menee]

Sorry to ask but I have been sorting out accounts over wk end and cannot find accounts from 0506 and0607 which means im missing 2 years. I use to keep my records in my loft and had conversion and can only think thats when they went. As we destroyed everything. Well my dh did. Im worried in case im ever audited what would happen. As although I can recreate what I earned I cant recreate expenses from then as do not have them anymore. Do I keep quiet and hope that it does not happen or ring hmrc as would that prompt a visit. Iv had a very sleepless night. Any advise appreciated

I assume you don't have an accountant now, and didn't for these years either?

You are only supposed to keep these records for another year (2005/6) or two (2006/7).

The chances of being selected for an inspection in the next two years are pretty small.

If you are inspected HMRC will look at your returns for those two years and compare them with later (and earlier if you were in business then) returns. If your profit level in those two years looks low compared to your turnover and you cannot justify this (because of the missing records) they may try and raise an assessment, and they may also look for a penalty for failing to keep records but you can appeal against any assessment or penalty so it would have to be reasonable.

If you want to pay for increased peace of mind you may be able to get Fee Protection Insurance that will cover the fees for an accountant to defend your position against HMRC if they make an inquiry and minimise any tax or penalty payable.