Self assesment go away...!!!

barnesyboy

Its been about 4 years now since I have been self employed but continuously I receive constant correspondance from HM R&C. I realise now that I have been a complete idiot and ignored the letters. I received a letter today to say I owe 740.38 which is bought forward from previous statement. I was self employed for approximately 2 months working as an Industrial Window Cleaner. Since then I have been to University, workes as a Property Administrator and claimed benefits. I am wondering what to do as I am now worryingthey might actually take the money from me even though I owe them nothing. Can anyone help.

Thanks

pjcox2005

It's probably worth putting a bit more in your post around the £740.38 owed.

Particular questions would be:

1) What does the £740.38 relate too and the details given by HMRC as to why it's owed.

2) Why you don't agreement with the outstanding amount.

From there people can suggest the best course of action e.g. pay (or agree instalment payment) or respond seeking for the records to be updated showing this payment as not owed.

barnesyboy

The 740.38 owed is for yearly tax returns over 4-5 years. As I said in the thread, I was only self employed for about 2 months but HM R&C have continuously sent me updated bills bought forward from the previous one. Since then I have worked in other positions went to University and claimed benefits. I have not been self employed and I would have thought they would have known this due to other employment. I dont want to set up an agreement to pay back the money because I shouldnt owe it in the first place seeing as I was self employed for a total of 2 months.

pipscot

barnesyboy wrote: »

The 740.38 owed is for yearly tax returns over 4-5 years. As I said in the thread, I was only self employed for about 2 months but HM R&C have continuously sent me updated bills bought forward from the previous one. Since then I have worked in other positions went to University and claimed benefits. I have not been self employed and I would have thought they would have known this due to other employment. I dont want to set up an agreement to pay back the money because I shouldnt owe it in the first place seeing as I was self employed for a total of 2 months.

Is this just tax itself or does it include penalties e.g. for not filing a self-assessment when you were asked to?

barnesyboy

pipscot wrote: »

Is this just tax itself or does it include penalties e.g. for not filing a self-assessment when you were asked to?

Im not sure. Its a self assesment statement with a payslip attached. Theres no rundown. Did I have to contact HM R&C to state im not self employed anymore. I am right in thinking that its only self employed people who have to fill this in or does everyone? There is nt a chance in hell that I will be paying the taxman nearly £750 because I didnt contact them to state I was no longer self employed. The system sucks if they arent alerted to this when I begin new employment.

pipscot

barnesyboy wrote: »

Im not sure. Its a self assesment statement with a payslip attached. Theres no rundown. Did I have to contact HM R&C to state im not self employed anymore. I am right in thinking that its only self employed people who have to fill this in or does everyone? There is nt a chance in hell that I will be paying the taxman nearly £750 because I didnt contact them to state I was no longer self employed. The system sucks if they arent alerted to this when I begin new employment.

Of course you have to tell them if you are no longer self-employed! How else would they know about it!!!!
You also have to make sure the class 2 national insurance is stopped as well!

It is not just self-employed people that have to fill in a tax return, lots of employed people do this also if they have complex tax affairs.
It is common to have to fill in tax return for the first year or two after finishing self-employment so that your correct tax liability can be calculated.

If you receive a notice to file a self-assessment tax return you MUST do so even if you don't think you should have received one. If you do not do this - you will receive a penalty.

You need to look through all the bills and paperwork you have received to work out how they have come to this amount. If you don't have this information any more - ring up and ask them for a breakdown.

InsideInsurance

But many people are both employed and self employed and so just because you started in employment doesnt mean you've stopped what you were doing in a self employed. Hell, have known people with multiple employed and self employed based jobs.

Self Assessments are compulsary for anyone that is registered to do them. You are required to be registered to do them if you are self employed, a company director, a landlord and for a few other reasons too.

As you hadn't deregistered from it you were required to do them hence why they were sent and you were chased about them.

barnesyboy

pipscot wrote: »

Of course you have to tell them if you are no longer self-employed! How else would they know about it!!!!
You also have to make sure the class 2 national insurance is stopped as well!

It is not just self-employed people that have to fill in a tax return, lots of employed people do this also if they have complex tax affairs.
It is common to have to fill in tax return for the first year or two after finishing self-employment so that your correct tax liability can be calculated.

If you receive a notice to file a self-assessment tax return you MUST do so even if you don't think you should have received one. If you do not do this - you will receive a penalty.

You need to look through all the bills and paperwork you have received to work out how they have come to this amount. If you don't have this information any more - ring up and ask them for a breakdown.

Im a complete idiot when it comes to things like this. I will call them today for a complete breakdown. Obviously I was stupid to think that because I had worked for 2 months, I wouldnt need to complete a yearly assesment. I honestly thought they would be informed if I started FT employment for a company. So I take it there are fines for failed completion. I will most probably have to pay them, in terms of tax NI Contibutions or whatever else its for, I will go to jail if I have to, I wont be paying, I wasn't self employed. Thank you for your help pipscot

Pennywise

Did you complete a self assessment tax return for the year covering the 2 months you were self employed? If so, did you enter a cessation date in the box to tell HMRC that you were no longer self employed? HMRC will continue demanding tax returns (and issuing fines) for all subsequent years until you finally are removed from their system (by you telling them!)

If you didn't fill in a tax return, then there may be tax to pay on those 2 months of work, which will be attracting interest and penalties, which won't be cancelled.

Re later years, once you've completed and submitted tax returns, as long as no tax is due, the fines will be cancelled.

But, if HMRC want you to complete tax returns, then you have to complete and submit them. There is no alternative. The penalties will just keep rising and ultimately HMRC will pursue via debt collectors, court and even bankruptcy.

Please, phone HMRC now. Tell them when you stopped self employment to at least stop things getting worse. Then ask exactly what they want from you. When you know what's needed, you'll have to do it, however unnecessary it may seem to you. Far better just to get on and do it rather than picking a fight you won't win.

barnesyboy

Pennywise wrote: »

Did you complete a self assessment tax return for the year covering the 2 months you were self employed? If so, did you enter a cessation date in the box to tell HMRC that you were no longer self employed? HMRC will continue demanding tax returns (and issuing fines) for all subsequent years until you finally are removed from their system (by you telling them!)

If you didn't fill in a tax return, then there may be tax to pay on those 2 months of work, which will be attracting interest and penalties, which won't be cancelled.

Re later years, once you've completed and submitted tax returns, as long as no tax is due, the fines will be cancelled.

But, if HMRC want you to complete tax returns, then you have to complete and submit them. There is no alternative. The penalties will just keep rising and ultimately HMRC will pursue via debt collectors, court and even bankruptcy.

Please, phone HMRC now. Tell them when you stopped self employment to at least stop things getting worse. Then ask exactly what they want from you. When you know what's needed, you'll have to do it, however unnecessary it may seem to you. Far better just to get on and do it rather than picking a fight you won't win.

Thanks alot. Im gona get hold of them now and go from their. I am more than willing to pay for the 2 months tax owed and for anything owed due to me not completing the forms, Im not paying anything else though, like interest etc. They can chase me all they like. Thank you for your advice. What a great website.

gadgetmind

pipscot wrote: »

It is not just self-employed people that have to fill in a tax return, lots of employed people do this also if they have complex tax affairs.

My wife hasn't worked for the last 18 years and she *still* has to do a tax return every year. I've had to do one every year, including the years I was at university, so we're getting the hang of these things!