OK, I've now bitten the bullet. I have sorted out my NI fairly painlessly. I have spoken to self assessment HMRC re sum owing prior to my company failure. (It's a lot!) Made a part payment and they are writing to me regarding balance. I have an face-to-face appointment with HMRC locally on 11 June to discuss tax, penalties and fines from September 2011 to date. They have told me that I can file outstanding returns on that date. I'm still very worried, of course. If I do not have enough funds set aside to pay outstanding tax and penalties then what sort of deal (if any) will they cut me? If I have to pay over a period of time I will need to spread it out over as long a period as possible. I'm not earning a lot of money. Thanks for all advice.

Thanks BazzaS. I think I expected what you have said so I had better get off my backside and contact them today. What about registering myself as self-employed? What's the situation there for me? I presume that that is a separate contact - and additional penalties. Am I right? If so, who do I contact there? Thanks again.

Thanks HB. I don't know which way to turn. I don't know who to contact first and how to present my situation to them. It's never been a case of wanting to evade tax or NI. I have always intended to pay what I owe from 2011. I hope somebody can advise me.

OK. I know I've gone about this all wrong and I've been stupid. But I'm now in a horrible place and I'm worried sick. I had a small limited company (two directors) which hit the wall in the summer of 2011. I and the other director parted company (amicably in the circumstances) but we literally closed the office door and just walked away. Previously we had traded successfully for four years and we had paid all our bills. We had lost all our major contracts over a two-month period and the business was stuffed. We walked off owing one quarter's VAT and about six month's worth of Corporation Tax. We have ignored any correspondence about the failed business. We haven't been chased too hard by any tax authority. We had no other creditors outstanding. It gets worse, much worse. I started to work for myself on 1 September 2011. I have not registered as self-employed. I just set up a one-man marketing and PR consultancy and started to work. I have not filled in a tax return for over two years and have ignored all warnings from HMRC re tax returns. Needless to say I have not paid any tax or NI since September 2011. I have copies of all invoices that I have raised since September 2011 and, with a bit of work, I can put together a record of business expenses against that income. Recently my finances have begun to pick up. I have put enough money on one side to cover the tax and NI that I think I owe since September 2011 but I am absolutely terrified about any penalties that I will have incurred regarding not registering as self-employed since September 2011 and my failure to submit tax returns. I can't sleep because of this. I want to put my affairs right with HMRC and NI. I never intended not to pay tax. But I am absolutely terrified about the penalties that may be coming my way. What do I do? I know I've been bloody stupid but here I am. Please help me.