Navigating VAT Complications After Receiving Inaccurate Accountant Advice

As a freelancer, managing various aspects of your business can sometimes lead to unexpected challenges, especially when it comes to taxation. Recently, I encountered a significant hurdle due to the inadequate guidance I received from my accountant regarding Value Added Tax (VAT) registration. Over the past five years, my accountant failed to register me for VAT, despite the fact that I should have been registered from the outset. As a result, I did not include VAT on any of my invoices issued to a range of clients.

Now, I am faced with the daunting task of reissuing invoices to include the VAT I should have charged, all while preparing to settle with HM Revenue and Customs (HMRC). I am aware that HMRC is not obliged to allow for retrospective claims, which complicates my situation even further.

Given these circumstances, I find myself at a crossroads. Should I proactively disclose this oversight to HMRC now that I am officially registered for VAT, or should I adopt a wait-and-see approach to see if I am flagged for an investigation? Understanding that the companies I invoiced would ultimately have reclaimed the VAT also raises an important question: does this knowledge strengthen my case when negotiating with HMRC?

While I navigate this complex situation, I would greatly appreciate any insight or advice from those who may have faced similar challenges. How should I approach HMRC, and what steps can I take to resolve this issue in a way that minimizes penalties or other repercussions? Your experiences and suggestions would be invaluable during this critical time in my freelance career.