£100 Penalty

pammy14

I stopped being self employed in April 2009 and completed my last Self Assessment return on line for that year. I have since been employed and paying paye.
I have now been asked to fill in Tax returns for the past 2 years which I have done putting in my pay and tax from the P60.
Now I have a bill for £100 for filing late returns, but as I was not self employed at all during this period why should I have been sending in tax returns?
Can anyone help.

Winter_Jasmine

Did you tell HMRC that you were no longer self-employed? If you did and there was no other reason you'd need an SA return, then they should only expect tax returns up to and including the date your business finished. If you didn't tell them they'll assume that you still are S.E. (quite reasonably really) and will keep sending tax returns, which must be returned by law, until you inform them.

heretolearn_2

And generally speaking we tend to find that they still request tax returns for another year or two after you inform them, so they can see proof that you really have stopped and do not have that income.

If they ask you to do a return you are legally required to do one, whether you have income that you need to pay tax on or not. They would have sent you a notice requiring you to do one. Ignore the HMRC at your peril...

Tax_guru

I agree that the tax returns should be completed and submitted. If all of your tax was deducted at source from your employment and you have no further tax to pay then HMRC should cancel the late filing penalties. If they don’t cancel them automatically then make sure you call them!

John_Pierpoint

Is it the 11/12 tax year, when the penalty will NOT be cancelled when it is discovered that no tax is owed?
I it will be a fine for not filling in a tax return rather than a penalty for being late paying your tax liability?

pammy14

Having spoke face to face with HMRC they have decided that there is nothing owing and the £100 bill was incorrect. Panic over. Thanks everyone.