Thaks for your responses. I called the collections offices who tell me that they made an estimate and I sould contact another office in central london. I will still have to pay the penalties which amout to just under 1500. The figure would make a very significant difference in my life but I will not complain. I know I am lucky. Thank you for responding

I did not have any insurance, my cash flow was so erratic at the time I am sure I would not have taken him up on it if he had offered it which he did not. Is it that dangerous to file a tax return that insurance is a good idea? I just wanted to say hello I am legal and pay my taxes how can I help you today and issue an invoice at the end?

I got a letter in the door today, it said they (HMRC) were seeking to levy distraint against me. My accountant filed my tax return last year but filed for 13 months instead of 12 plus 1. HMRC sent it back but I did not see this envelope. I always get post from HMRC that is not relevant to me (PAYE for example). As far as I knew I had made my return and paid my tax. This delay was my mistake. As soon as it was discovered we split the return in two and sent it back to HMRC. Turns out it was too late. HMRC took my return as null and void and estimated my income. The tax calculated is just under 14000. I grossed 6000 last year (similar figure this year). I am training myself as I go so no large income yet. I registerd as self employed as I was surviving on my hobby turned profession as an IT person I wanted to do right by the tax man.. I met my accountant through a mutual friend and he said a company was the best way to go as there were many flexible ways of getting financial help. So I went limited. In my first year I was late in filing but paid Companies house the penalty in installments. They acknowledged my return. (which was also sent to HRMC) It may sound like a joke to you but my assets are nothing close to 2000. I live mostly on hope and ambition. Does this mean that I will be made bankrupt for penalties and tax that is not connected to the reality of my situation? I am sure I am not the first and "the law is the law", but is there a way I can pay in installments. I am not sure my punishment in proportional. Is there anything I can do? I came here to post as I am not totally confident in my accountant anymore, I need to know what my real options are. Each time we speak he seems more interested in covering his behind so I need to know as much as possible from a different source. Any feedback would be greatly appreciated. I will call HMRC tomorrow, I am still in shock