VAT block - please help me get my head out of the sand

[VATostrich]

Hi,

I have name changed for this because I am so horribly embarrassed. I have got myself in major bother with VAT.

I set up my own freelance business some time ago and registered for VAT voluntarily. Then my DC was born with very serious health problems and my business was put on hold. I stayed VAT registered and just fired off the forms with £0.00 every three months.

Recently I have been really down as a result of everything that has happened over the last couple of years and I have missed two VAT returns. I now have five letters (very likelt demands for payment) which I have not opened and have hidden in my handbag. I just cannot face opening them.

Please, please can someone persuade me that the sooner I do this the better. I keep thinking "Just one more day and then I'll sort it out" but I feel so ragged and tearful all the time that the right moment never comes.

Help!!!!!!!

The VAT Ostrich

hi
im not sure what the letters will say but im certain you will feel a whole lot better when you open them and see. if your business hasnt been trading then even if they are a demand for payment you should be able to talk to hmrc about it and ensure that the amounts are right. they may have de-registered you for VAT if they dont think that you are trading any longer. has the business traded in the last 2 quarters? if you havent made any taxable supplies then although they may try and impose a penalty for failing to file a return then it will only be relatively nominal. if they have issued an assessment it is likely (a) to be low given your previous non-trading figures or (b) wrong and will be adjusted when you give them the correct data. your not going to be sent to prison or anything nasty like that - you just need to see what the letters say and deal with it. hmrc have have a helpline and im sure they will give you advice on how to rectify your position.
keep me posted and good luck!

Liz, I love you!

I just opened the letters and one of them was a final demand threatening baliffs etc. I rang the number given and told them my circumstances and it is all sorted. I am going to deregister TODAY and can now put this behind me.

Thank you very, very much for your wise words. This has been hanging over my head for weeks and I feel so much better having sorted it out. You are a marvellous human being.

The Ostrich x

well done you! - that's great news. these things are never as bad as you imagine!

Exactly - there are actually some reasonably sympathetic human beings at HM Revenue & Customs!!