SELF ASSESSMENT - LATE TAX RETURN (had temporarily moved out of the UK)

hardikrs

Hi,

I have just received Self Assessment - Late Tax Return : Penalty Notice from HMRC. I had read through some of the threads on this topic, but I my situation is a little different and hence I am giving the requried details.

(1) I worked for an UK based employer from Aug 2004 till Sep 2009. For all these years, my employer used to take care of my tax related paperwork. I never filed any tax returns during this period.

(2) I moved to the US operations of the same company/group in Sep 2009 (and did not have any UK based income after that).

(3) In early 2011, I asked for P60 for 2009-2010, but was given P45 for 2009-2010 by my company (they had probably treated me as if I quit the UK Operations and joined US Operations of that company as my new job)

(4) I did not ask for P60 or confirmation of any other sort, I assumed they would have taken care of whatever was required, as they had been doing in the last 3-4 yaers.

(5) I moved back from US to UK in May 2011 and immediately joined another company here (quitting the US operations of my previous employer).

(6) On 13 Aug 2011, I received a SELF ASSESSMENT - LATE TAX RETURN: Penalty Notice from HMRC.

(7) Important points to note:
(a) I did not have any other UK income in 2009-2010 (no UK income at all between SEP 2009 and MAY 2011), apart from what was mentioned in P45 (Until SEP 2009)
(b) I did not receive any forms, letters, notices, reminders etc. from HMRC until 13 Aug 2011.

I am following up with my previous employer to confirm if I am required to file a tax return and if they had filed the same for me for 2009-10 (apart fromt he P45 that they have given me).

Can you please advise what my options are and hwat should my next steps be ?

Can I appeal against this (HMRC have provided with a form for the same) ?

Your guidance is really appreciated.

Many thanks

HappyMJ

If you have no tax to pay then HMRC will (in most cases) reverse the penalty.

Cook_County

You do of course need to file your US returns, FBARS etc as there are serious penalties for failure.

You should also file a UK return because it has been issued - including self-assessing your residence status.

For 2009/10 these UK penalties will then be reduced to zero because the tax is zero.

hardikrs

Cook_County wrote: »

You do of course need to file your US returns, FBARS etc as there are serious penalties for failure.

You should also file a UK return because it has been issued - including self-assessing your residence status.

For 2009/10 these UK penalties will then be reduced to zero because the tax is zero.

Thanks for your guidance

Yes - I have filed all the relevant US tax returns.

For UK: do I now have to file the UK tax return based on the P45 that I have got ? I never got any P60. Also, Self Assessment is different from Tax Return ?

John_Pierpoint

A self assessment tax return is what it says on the tin.
In theory you fill in the forms, work out how much tax you owe and send a cheque.
In reality the savvy people (without an accountant) keep up to date each year by using the on-line self assessment tax return system as it checks your entry and when your return is complete, tells you how much tax to pay.

In your previous year(s) example, you will have to fill in the forms and wait for HMRC to process them.

Presumably HMRC want you to complete self assessment for 06apr09 thru 05apr10 and 06apr10 thru 05apr11 - The latter being due on paper by the end of October or by the end of next January if you register to use the on-line system.
You appear to have gone abroad and stayed abroad for a whole tax year 10/11.

The simple rules of counting days wholly out of the country were changed on 05apr2009 and are still in state of flux?

There seems to be a suggestion that HMRC is trying to "mission creep" on overseas earnings:
http://www.pressandjournal.co.uk/Article.aspx/1300344?UserKey=

Read this explanation a prepare to give up the will to live:

http://webarchive.nationalarchives.gov.uk/20101111063954/http://hmrc.gov.uk/cnr/hmrc6.pdf

I bet you wish you sorted this out when you went abroad and had not left it until your return.

"Death and Taxes"

John