Hi, My Husband set up business as a sole trader in January 2009.He then registered for VAT in October 2009. The first 2 returns, December and March were both fine as I had done them and double checked everything. I then had a breakdown in May and the books were passed on to a family member who kindly offered to help. She told me she knew what she was doing and not to worry and at the time I didn't have the strenghth to even if I wanted. So she carried out the returns in June, September and December 2010. I then decided that I could cope with doing the admin again the start of January this year. I recieved an error letter on the December return and did think that the copy of the return they sent wasn't quite right but because my Husband had brought a van through finance I thought that had given the large amount for refund. I then contacted HMRC to find out why the refund was taking so long and they told me that we needed to be inspected to make sure the return was right. This is when it all goes wrong. I collected the accounts from the aunt last week and was shocked to see that all the invoices and receipts that had been passed to her had not been written down in the account book. Needles to say I have no idea how she got to the amount on the vat return. We have now had a major falling out over this and I am really worried about the inspection this Friday. I have updated the accounts and have seen that the 3 returns, all made by her, are all wrong. A reclaim of £4300 in September was payed by HMRC, which shouldn't have been paid at all and she came to the figure of £10300 reclaim on the December return. I just have no idea where she got these figures from! I have worked out that we need to pay £6000, that's including the £4300 from September. We just don't have this kind of money especially as I am still on a phased return to work through my illness. My question is are we going to get a large penalty and interest charge for this? Am I going to be in trouble? How long will we get to repay this debt as we can only really afford £50 per week? You may ask about where my Husband was in all this. He made it clear from the start of becoming self employed that because he didn't understand anything about book-keeping he would leave everything to me. So all he did was pass invoices and receipts to the aunt and wasn't aware that she wasn't doing it properly. Help or advice anyone?