Self Assessment Nightmare

RadoJo

Hi all,
I'm after a little advice from someone who knows about these things, so thanks in advance.

I've been self employed since March 2010, and was expecting to fill out my first tax return during this 'cycle'. I hadn't had any reminders about doing so, so called up to ask for advice which was when I found out that I have been issued the wrong Unique Tax Reference code which has resulted in my NI number not being linked to my self employment records.

The advisers were very nice, but said that I would have to re-register as being self employed and would basically be issued with penalties for failing to complete my tax return etc as it would take around 6 weeks to clear up the problems and I would good grounds to appeal these penalties once they come through. Unfortunately I am currently 33 weeks pregnant, so will probably be pretty busy when they finally do send this information through to me, so can anyone give me any idea of
a) whether 6 weeks is an accurate estimate of how long this take to sort out from HMRC's end and
b) how long I will have to make the appeal before I'm deemed to have accepted the penalties against me/ have to pay up.

I hope this makes sense and that I have given enough relevant information - your time in reading is much appreciated.

chrismac1

My first piece of advice is to get written evidence of some kind. Just one example of several I could quote. I had a client who rang them to register for VAT, he took a note of the date, time, name of person, tax office they were in, what was said. Four months later HMRC attempted to fine him for late VAT registration saying he had failed to register, as soon as he quoted these details they packed that in. This one piece of advice - to get all of these details when you speak to HMRC - has collectively saved my clients thousands.

Self-assessment UTR "standard issue" takes about 3 to 8 weeks. We are currently in peak time. Yours is potentially non-standard. If you look up previous posts of mine, you'll see that sometimes - not always - non-standard things can take HMRC months and even years to resolve, even though the same sort of thing in say a utility company will be sorted in a couple of weeks. Hence your need to have it clearly on the record as to when you started this ball rolling.

Naturally this is not a two-way street. HMRC can issue demands and bills years after the event. When you get a penalty notice you have 31 days to respond. Personally I would like to see the same 31 day gun held to HMRC's head - i.e. no response to a letter within 31 days and they must drop the case. Pigs will fly the day that happens!

chrismac1

http://www.accountingweb.co.uk/anyanswers/question/provisional-figures-and-penalties

I think I am OK to post a link to this website, if not no doubt the site mods will let me know! But overall I think this thread should give you a good idea of the ethical dilemma your accountant - any accountant - finds him or herself in when submitting a tax return which may not be complete and accurate. It's a judgement call we all have to make.

Mikeyorks

RadoJo wrote: »

I've been self employed since March 2010, and was expecting to fill out my first tax return during this 'cycle'. I hadn't had any reminders about doing so,

You normally get a Notice to File in April - or shortly after registering, if later. Did you get that?

If you're registered for online SA ...... just use the UTR you have. Up to HMRC to sort out any background issues

RadoJo

Mikeyorks wrote: »

You normally get a Notice to File in April - or shortly after registering, if later. Did you get that?

If you're registered for online SA ...... just use the UTR you have. Up to HMRC to sort out any background issues

I have had nothing from HMRC, which was why I called as I also couldn't register online using the reference numbers they sent me. Helpfully it just said 'Either you're already registered for online SA or you are ineligible to register online' without giving me any clue as to which. The people I have spoken to (names, dates and times of calls all noted for future reference!) have confirmed that my UTR actually belongs to someone else (lord only knows how!) and not to use if for fear of causing even more complications in the future.

It's so frustrating as I was all ready to go - records all in order and money ready to pay - but now it looks like I'll have to go through the appeals process whilst sleep deprived and trying to decipher how to work a baby!

Thanks for all the help folks - looks like I'm just going to have to sit tight and wait until they see fit to sort it out at their end.

Mikeyorks

RadoJo wrote: »

and trying to decipher how to work a baby!

Once you've sorted HMRC out - the baby will be a doddle!

tyllwyd

I'm a bit confused - if you were self-employed in March 2010, wouldn't your earnings in that month fall into the 09/10 tax year, which would mean that you should have filed a self-assessment return in January 2011?

RadoJo

tyllwyd wrote: »

I'm a bit confused - if you were self-employed in March 2010, wouldn't your earnings in that month fall into the 09/10 tax year, which would mean that you should have filed a self-assessment return in January 2011?

Well, I was actually working full time with my employer paying tax directly until the middle of March. I registered as self-employed in mid-March because I wanted to get my NI payments sorted out in good time, but I didn't actually start working/earning as self employed until April. I assumed (perhaps incorrectly) that I hadn't been asked to complete a tax return for 09/10 because my existing tax records went up to the end of March 2010 and my first direct NI payment went out in April 2010. However given what I now know I would not be surprised if I was being woefully over optimistic that they had understood this so although I know that I don't actually owe any tax for that tax year, it is possible that I will be pursued for failing to notify them of this in which case I can only hope that they will consider an appeal reasonable on the same grounds.

dori2o

RadoJo wrote: »

Hi all,
I'm after a little advice from someone who knows about these things, so thanks in advance.

I've been self employed since March 2010, and was expecting to fill out my first tax return during this 'cycle'. I hadn't had any reminders about doing so, so called up to ask for advice which was when I found out that I have been issued the wrong Unique Tax Reference code which has resulted in my NI number not being linked to my self employment records.

The advisers were very nice, but said that I would have to re-register as being self employed and would basically be issued with penalties for failing to complete my tax return etc as it would take around 6 weeks to clear up the problems and I would good grounds to appeal these penalties once they come through. Unfortunately I am currently 33 weeks pregnant, so will probably be pretty busy when they finally do send this information through to me, so can anyone give me any idea of
a) whether 6 weeks is an accurate estimate of how long this take to sort out from HMRC's end and
b) how long I will have to make the appeal before I'm deemed to have accepted the penalties against me/ have to pay up.

I hope this makes sense and that I have given enough relevant information - your time in reading is much appreciated.

First you will not be issued with late filing penalties. You will get 3 months from the issue date of the return to complete it and send it back. The only thing you may incurr is interest/late payment penalties, BUT, as you have names, times, dates of calls, and I'm assuming the UTR number that has been sent to you that is incorrect, you should have no problem in having these cancelled.

PLease don't listen to the scare tactics of Chrismac. He's here just to tout for business as he's too incompetent to get it any other way.