£100 fine and nothing to declare!

skeen08

Hi all,

I have been notified that I owe a £100 charge for failing to send in my tax return.

I worked for about 7 months, self-employed in 2008, and paid the tax for this last year.

I am no longer self-employed. I have nothing to declare...

I didn't realize I still had to fill out a tax return, especially as I explained to them that I'm no longer self-employed!

So why didn't I file my blank tax-return? I simply haven't been at home very much, and this dropped off the radar.

I guess I need to call them...but from peoples' experience, do you think I'll still have to pay the £100??? What happens from here?

Thanks much.

Mikeyorks

skeen08 wrote: »

I guess I need to call them...but from peoples' experience, do you think I'll still have to pay the £100???

When you file the Return the penalty will be £100 or the amount of tax outstanding - whichever is the less. So - if no tax is due then the penalty will reduce to £zero.

But you have to file the Return first. And - as you're so late - you're likely to have to file one next year as well - unless you can 'phone and negotiate your way out. But as you're past the selection date for next year - unlikely.

skeen08

Mikeyorks wrote: »

When you file the Return the penalty will be £100 or the amount of tax outstanding - whichever is the less. So - if no tax is due then the penalty will reduce to £zero.

But you have to file the Return first. And - as you're so late - you're likely to have to file one next year as well - unless you can 'phone and negotiate your way out. But as you're past the selection date for next year - unlikely.

Gosh, what a pain. So I probably won't have to pay the £100 then? Thanks for your advice. :beer:

dori2o

skeen08 wrote: »

Gosh, what a pain. So I probably won't have to pay the £100 then? Thanks for your advice. :beer:

No,you probably won't have to pay the £100, but you must fillin the form and show any income you have received in the 2009/10 tax year.

Please note however that this is the last year that the penalties automatically reduce in cases where the tax liability is below £100. In future if you get a penalty and file late, unless you appeal and that appeal is granted, then the penalty stands at £100 no matter what the liability outstanding is.