HMRC say I owe them, do I?

kingjude

I was self-employed 10 years ago and had a small cleaning business and it ran for about 11 months. I had to close it down due to strain it caused on me and my son and finding out my son has a disability. At that time I didn't make any profit and forgot to file my taxes. Many years later HMRC have chased me for money I owe them and they said that I would need to send a tax return to get the true charges. I sent in a tax return and now say I owe them tax.

Do I need to pay them when I did not make any money? I'm currently looking after my son who has a disability. I have gotten even more upset and angry at HMRC because they will chase a single woman with a disabled son for £1200 but will not chase big American companies for money and close loop holes to get money and get us out of recession.

Should I take them to court? How can I prove I don't owe them money? Any help is appreciated, thanks.

CLAPTON

maybe just explain the numbers which show you owe no money.

kingjude

I called them and explained to them that I didn't make any money and was in fact at a loss. But they still say I need to pay that. They gave me an estimation of how much money I owe and that is it. So I have no idea what to do.

I could go to court but my fear is if I do go to court and lose then I will have to pay court fees and everything.

CLAPTON

what numbers did you put on the tax form?
for which year?

System

It sounds like this

http://www.hmrc.gov.uk/sa/deadlines-penalties.htm#4

The estimate creates a legal tax debt. When they estimated your bill you would still have had time to overturn this by filing your return. Depending on the year involved it may be too late to do that. If your self employment was 10 years ago, the estimated bill would likely have already been in place for 5 or 6 years by now.

Best speak to HMRC as soon as possible.

kingjude

Thanks, I think I may have to pay based on the penalties of it being so late.

kingjude

ceiberman wrote: »

It sounds like this

http://www.hmrc.gov.uk/sa/deadlines-penalties.htm#4

The estimate creates a legal tax debt. When they estimated your bill you would still have had time to overturn this by filing your return. Depending on the year involved it may be too late to do that. If your self employment was 10 years ago, the estimated bill would likely have already been in place for 5 or 6 years by now.

Best speak to HMRC as soon as possible.

I have seen the penalties and I think it is based on it being so late and then the interest of the penalties accumulated.

somethingcorporate

Making a loss does not absolve you from the tax return deadlines unfortunately and it appears they think you have been self-employed ever since.

Do you have confirmation of what debt that you closed down the business? If you provide them with evidence of this I am sure your bill should be a fraction of what it currently stands at.