£8K Self assessment bill from 5 years ago!

slackabouttax

Hello all,

Sorry if this is repeating previous posts, but I've had a nasty shock from the inland revenue, and figured this was the place to ask for advice.

It's a bit of a tale I'm afraid.

Back in Feb 2003 I was working PAYE, but only 4 days a week, so to fill the hole in my income I did some self-employed work for the other day a week. I registered with the inland revenue and everything, filled out the tax returns online and all the rest of it for the 2002/03, 2003/04 and 2004/05 tax years. In August 2004 I left the 4 day a week job and got a full time job elsewhere, so the 04/05 tax return was my last one - I told them this at the time and they said this was fine, they'd take me off self-assessment. Job done I thought.

The amount of tax I was due on the tax returns always came under the level where rather than me having to send off a cheque they just adjust your PAYE code and take it back through that, so I never had to send them off any payments.

There was one time since then that I had a reminder about a tax return, but when I contacted them to say 'I'm not on self assessment anymore' they said 'oh yes, that's right, our mistake, just ignore it'

Well, I never thought anymore of it. I've been working on PAYE since then, I've long since moved house and then about a month ago I got a call at work from a woman at the IR saying that she had me down as owing them eight grand. I went through my work history with her and then she said it was all cleared off and not to worry. She updated my address details and off she went.

Now I've had a statement from them saying I do owe £8000, and a bunch of tax returns.

My total earnings from the self-employed work weren't more than £6000, so that's some strange maths they're doing there.

I suppose the obvious place to start is filling in the tax returns to show that I haven't been on anything but PAYE for the last few years, but any help or advice on how to deal with them would be much appreciated!

Thanks!

hypno06

I can only suggest ringing the Inland Revenue again tomorrow. You do have a right to appeal so if it is incorrect you should be able to overturn it.

In our city we have an Inland Revenue "drop in" office where they are really helpful for those things that you need to sit down and work with someone face to face - might be worth a look to see if you have a similar system near you.

fermi

I'm not much good with tax/HMRC, but these people may be worth a calll.

TaxAid - Help with tax debts.

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rog2

slackabouttax wrote: »

My total earnings from the self-employed work weren't more than £6000, so that's some strange maths they're doing there.

Hi sat - HMRC do indeed have some strange mathematical formulae that they 'apply' when making 'assessments' - I think it's based on the principle that if you scare the faeces out of someone, they will react.
I can only advise that you do not ignore this demand, as they will pursue you all the way to bankruptcy (see my signature).
Whilst, personally, I did not find my local Tax Advice Centre in the least helpful, their level of service may well vary around the country, so it is, of course, worth calling them - also taxaid.
I think that 'Self Assessment' was one of the worst things that they ever introduced - it is not at all user friendly and if you make the sligtest mistake, HMRC will automatically assume that you are 'trying it on' - but I have to admit to a certian degree of 'bias' and I wish you well.

LilacPixie

sounds like they have made a 'determination' against you. Find out what year the determination was made for, complete the returns and it will get sorted.

slackabouttax

This is all great, thank you all! It'll be so much easier to speak to them with the backup of a bit of knowledge (and support).

Just to clarify - is a 'determination' where they guess how much they think you've earned and make up a bill based on that?

Presumably they just have a random number generator in the office and then move the decimal point three places right...

Thank you all again

rog2

slackabouttax wrote: »

Just to clarify - is a 'determination' where they guess how much they think you've earned and make up a bill based on that?

Yes it is.

Presumably they just have a random number generator in the office and then move the decimal point three places right...

One is certainly tempted to think so. :rolleyes:

Thank you all again

As LP says - you need to find out as soon as possible, so that you can 'correct' this determination.

Mum_on_a_mission_2

If you have received a determination you can only displace it by filing Returns, so you will need to fill all that paper in. But keep copies yourself.

Send them back and be sure to complete the white box (space for extra explanations) on each one giving the date that you stopped your short period of self-employment. You should then get amended statements - if you don't follow it up by phone quickly.

hth

Moam

sammy115

Hi

You should really go and see an accountant with this problem....they can communicate with the inland revenue on your behalf and also go through your previous self assessments to see if you have done anything wrong.

There are also rules as to how long the inland revenue can go back and 'investigate' your self assessments. If they have sent you a determination then they may also have added penalties and interest.

sammy