Death of client

[shotokan]

A client ran a small business from 1999 to 2006. Accounts were prepared to 31/3/04 but not for the 2.5 years or so after that to the date of sale. The Revenue didn't hassle him too much over the outstanding returns until 2009. He then brought info in but not nearly enough to prepare meaningful accounts. Again the Revenue seemed to back off and didn't push him for the returns. Sadly, the client has now died. I think it is now very unlikely that we will ever get the necessary info to produce accurate accounts for 2005 and 2006.

Between 1999 and 2004, the business only made a taxable profit in one year amounting to just £389 whilst losses ranged from £3,670 to £7,974. Would the Revenue accept that it is most unlikely that, from the previous results, any taxable profit would have been made in 2005 and 2006 and simply treat those returns as Nil, in effect.

All comments are appreciated.

[pawncob]

Why didn't HMRC hassle him? My clients always get reminders/threats/penalties/fines.
Their attitude depends on potential tax liability, so it's quite likely that they'll accept a NIL position if there are previous losses.
Have a chat with the Inspector(?) dealing with it and sound him out.

[Incredulum]

Sounds like a hobby to me, so the losses wouldn't have been any use...