Behind on Tax

chantaspell

I work in a company and therefore pay tax through PAYE. However, I have had a few fingers in a few pies outside work and I very stupidly overlooked tax i should have paid on income earned from website adverts and online affiliate marketing between 2006 and 2010.

The amounts involved are not huge, probably £1000 a year total untaxed earnings per year, so the tax itself I owe will be pretty minimal (plus interest of course). But am I likely to have a major penalty thrown at me as well?

Really want to get my extra incomes tax legit so I can A do the right thing and B have them taken into consideration when remortgaging.

Many thanks for your help

agrinnall

I think I've read that the penalty is normally not more than the tax that's due, if so the worst case would be that you'd have to pay £400 of your £1000 if you're a standard rate taxpayer or £800 if you're higher rate. I would contact HMRC, explain your situation and see what they say, if it sounds bad then it may be worth consulting an accountant for more detailed advice.

NicChanna

Hey,

I recently realised I hadn't been paying tax that should have been due since 2006. (See other thread 'Scared to Admit tax mistake ...')

They were nice to me on the phone and told me that because I'd told them and they hadn't found out another way they would only want the tax back plus the interest since it should have been paid.

Sounded good to me but I have written off to them with all the details and waiting to hear back so watch this space and I'll let you know what they did with me.