Q. The Taxman has written to me saying I missed a small pension worth about £800 a year from my last tax return. He hasn't noticed that I also missed it off the last four tax returns. What should I do?

A. Best advice is to come clean immediately and tell the Taxman about all the missing amounts of pension income for all tax years. There may not be more tax to pay if the pension provider has already deducted tax at your marginal tax rate. However, if there is higher rate tax to pay there will also be interest due at 3% and possibly a penalty. By confessing all without delay you can qualify for a reduced penalty, down to say 15% of the tax due. We can help you with those penalty negotiations and may be able to get it suspended for up to two years.

Q. I registered as self-employed in 2005, but as I didn't have any income I ignored the tax returns the tax office sent me. When they demanded £1000 tax for each year I got my act together and sent in the completed tax returns which showed no tax due. Now the Taxman won't cancel the tax demands issued for the years before 2008/09. What can I do?

A. You have been caught by the tax law here. The years before 2008/09 are 'out of time' and the Taxman doesn't have to cancel the tax demands for those years. Although you may be able to appeal for the tax demands to be cancelled under 'special relief', but you need to show it would be unconscionable for the Taxman to collect the excessive tax. This is a very high hurdle to clear.