Received a letter today .. Am I right to be worried?

Driving_Soon

Hey
I received a letter today from HM Revenue and Customs, Asking all employment details from the date I left full time work (May 08). Now I am a little worried and confused, I have filled in the form of the best of my ability (I am dyslexic so found it a little tricky, but I got their in the end). Now I am a little worried about something, So I hope you guys could tell me if I have reason to be worried
My only employment currently is a Cleaning Job for 3 hours a week. I have been doing this since 2004, even while I was working full time with another job for 2 years. I have write this on the form that this is only employment at the moment, but the problem is I am not too sure if They knew I had “ 2 jobs “ from Feb 06 - May 08. I was paying no tax on the 3 hours a week job, and regular tax on my full time job. I have talked to a friend about this and they have said, when HM revenue and Customs find out about this, they will ask me for some money, because if you have had 2 jobs you have to pay higher tax! I never knew about this, so if this is true, I am really worried because it will be Money I don’t have! I am currently at college, studying a full time course so my income is really low.

Do I have a reason to worry?

Thanks guys for any advice.

matimage

Hmm, not sure about your part time work and bits but I did get a letter from them a few years ago because I had been away travelling then became self employed so they just wanted to fill in the gaps.

RayWolfe

You will have to pay tax on these other earnings. Have you told the tax man about these previous years earnings yet? If you haven't, my advice would be to do so immediately ... don't let them find out from other sources.

Driving_Soon

RayWolfe wrote: »

You will have to pay tax on these other earnings. Have you told the tax man about these previous years earnings yet? If you haven't, my advice would be to do so immediately ... don't let them find out from other sources.

Well I am not sure if they know or not?

What happend is I started this 3 hours a week job in Sep 04 (as a student). In Feb 06 I started a weekend job at a shop (still as a student, still doing the 3 hour a week cleaning job), In Aug 06 I started full time, I had left college and was doing 42 hours a week, I had no new contract or anything, I was just doing more hours ... so Noone even asked if I had 2 jobs or anything. Then this year 05/08, I quit work full time, to start studying again. but I am still carrying on with the 3 hour a week cleaning job. So if i tell them that I have been working for the company for 4 years (2 of them i was working full time) will they ask me to pay them any money? and will I be in trouble? :eek: If so what type of trouble?

Just to clarify, I am now only earning £74.50 a month (one job lol!).

RayWolfe

It is your responsibility to declare all earnings if they are not subject to PAYE and they take you over your personal allowance. Ignorance of the law has never been an excuse.
If you do not declare your earnings and the tax man finds out you may be fined in addition to having to pay the back tax. Have a look on the HMR&C website, this will give you some information. I shouldn't think you will have any tax liability for the current year.

fubar4164

It all depends on how much you earned each tax year (to 5 April). If it was below the threshold level (around £4.5k each year) then you don't pay tax on it. From what you've said it sounds like when you were working 40+ hrs you would be above that threshold.

It seems like you will have extra tax to pay. However, when you started your job your employer should have got you to complete a P46 - really it is your responsibility to inform your employer of your circumstances and then for them to operate PAYE on your earnings as appropriate.

I would tell HMRC the truth about your earnings, and ask for time to pay the additional tax & interest

Driving_Soon

Yeah you are all right, It's just I was 18 at the time, straight from school, and I knew nothing about tax, working life ... but you are all right, I will just come clean, say I did not think I had done anything wrong, and I know for a fact I did tell my employer i had another part time job at the time i started full time work, but ahh well. Thanks for the advice guys.

chriiiiiiiis

Driving_Soon wrote: »

Yeah you are all right, It's just I was 18 at the time, straight from school, and I knew nothing about tax, working life ... but you are all right, I will just come clean, say I did not think I had done anything wrong, and I know for a fact I did tell my employer i had another part time job at the time i started full time work, but ahh well. Thanks for the advice guys.

I raised a skeptical eyebrow at that post - It just seems too cheesy to be honest.

Driving_Soon

chriiiiiiiis wrote: »

I raised a skeptical eyebrow at that post - It just seems too cheesy to be honest.

Well, Its the truth!

hansoff

Driving Soon

Let me assure you that you will absolutely NOT be in trouble with HMRC.

You say that you have received a form asking for employment details since you left full time work. Well send back the form giving them exactly the information which they have requested and nothing more. Do not say anything along the lines of you did not know that you were doing anything wrong. They are not interested in hearing that and it is very unlikely that earnings from a three hour a week job will materially affect your overall tax liability.

Driving_Soon

hansoff wrote: »

Driving Soon

Let me assure you that you will absolutely NOT be in trouble with HMRC.

You say that you have received a form asking for employment details since you left full time work. Well send back the form giving them exactly the information which they have requested and nothing more. Do not say anything along the lines of you did not know that you were doing anything wrong. They are not interested in hearing that and it is very unlikely that earnings from a three hour a week job will materially affect your overall tax liability.

Aw! Thank you! You are gonna give one guy, one very peaceful sleep tonight! Thank you!