Unemployed and received a Self Assessment payment reminder!

jasper27

My son is unemployed and has received a Tax return and payment reminder, but we don't know why.

He has been on ESA for over a year and this is making him ill with worry, as they are threatening him with a £100 fine if it's not completed.

I know the easiest thing is to ring them, but he has no confidence to ring them and they won't speak to me.

Does anyone know why he is receiving these? and what we can do about it?

Thank you

grey_gym_sock

the puzzle is why they sent him a tax return. if he's had no income other than benefits due to being unemployed, it shouldn't be necessary. but he needs to get them to agree it's unnecessary, rather than just fail to fill in the return.

once they do issue a return, the £100 fine if it's not filled in on time is automatic. so he does need either to get them to agree it's not needed, or actually to fill it in, even if no tax is owed.

what year is the return for? if it's for 2011-12, the deadline is the end of this month, if it's done online.

jasper27

grey_gym_sock wrote: »

the puzzle is why they sent him a tax return. if he's had no income other than benefits due to being unemployed, it shouldn't be necessary. but he needs to get them to agree it's unnecessary, rather than just fail to fill in the return.

once they do issue a return, the £100 fine if it's not filled in on time is automatic. so he does need either to get them to agree it's not needed, or actually to fill it in, even if no tax is owed.

what year is the return for? if it's for 2011-12, the deadline is the end of this month, if it's done online.

Hi thank you for your reply.

Yes the return is for this year, and (unbeknown to me) he received the letter in Dec 2012.

He was self-employed a couple of years ago and everything was completed as necessary and as far as I can tell he had an assessment form last year which he completed.. stating he was unemployed.

I have spent all morning trying to make sense of the HMRC system and what he needs to do, but as I have never been self-employed (I'm employed) I simply don't understand the system

Now it seems he needs a password and User ID which he can't recall, will he have time to request a new one before the deadline? and once he's received it, is it just a matter of completing an online form stating he's unemployed?

I'm so sorry for sounding a bit 'thick' but I have never had to deal with this and my son's depression is quite deep at the moment, so I'm trying to help him without causing him any further stress.

Thank you

grey_gym_sock

ok, HMRC will usually keep on sending you tax returns once they've started, so it's not surprising for somebody who used to be self-employed. ideally, he'd phone them and point out he's no longer self-employed, so it's not necessary.

but, to complete this return, yes, there should be time to get a password. i've never asked for a replacement password, but getting a username and password originally only took about a week or 2.

the return involves entering all taxable income for the tax year. if he wasn't self-employed during any part of the year, he'd just not tick the self-employment box. taxable benefits (e.g. JSA) should be entered in another box.

jay1181

he just need s to give them a call and his id and password will be e-mailed and sent in a letter he may expect to get a late penalty as he did get the reminder in dec. get HIM to call and explain his situation to them you never know they might wave the charge as it takes a few days for password and id to arrive. hope he gets it sorted :)

PlutoinCapricorn

Once you register as a sole trader, you will be asked to complete self assessments each year until you officially inform HMRC that you have Ceased Trading - there is a date box for this on the form.

Not getting any work does not necessarily mean that you do not hope to get any in the future.

It seems that your son is still officially self employed in HMRC's eyes.

PlutoinCapricorn

Self assessment and self employment are not always the same: all self employed sole traders must self assess, but not everyone who self assesses is self employed!

If HMRC think that your son might still need to self assess, they will send another request next time even if he officially ceases trading. This is to ensure that he pays the correct amount of tax, Someone who gets intermittent temporary employment and is getting benefits might be asked to file a return for example.

They enclose a form with the reminder saying that you can ask to come off the self assessment system if you don't think it is necessary.

It is very important not to ignore anything from HMRC, and to keep records of their communications.

jasper27

Thank you for all your replies, you have made it much clearer and have put our minds at ease.

We have managed to log into his account and we are now waiting for an activation code to be sent which they have said can take 7 days.

I just hope we can get it sorted before the deadline.

Thanks again to you all, for taking the time to help.

PlutoinCapricorn

That is a relief. You should have ample time to complete the return: it is best to get it finished with as soon as possible, and not wait until Jan 31st as some people do.

Could you speed things up by preparing the figures on a spreadsheet in advance? That is what I do.

zygurat789

jay1181 wrote: »

he just need s to give them a call and his id and password will be e-mailed and sent in a letter he may expect to get a late penalty as he did get the reminder in dec. get HIM to call and explain his situation to them you never know they might wave the charge as it takes a few days for password and id to arrive. hope he gets it sorted :)

The deadline is 31 January 2013.
There is still time to get this done.
Click on forgotten user ID and Forgotten password and they will be sent to you, in a week or so.

BUT DO IT NOW

CrazyChris

jasper27 wrote: »

My son is unemployed and has received a Tax return and payment reminder, but we don't know why.

He has been on ESA for over a year and this is making him ill with worry, as they are threatening him with a £100 fine if it's not completed.

I know the easiest thing is to ring them, but he has no confidence to ring them and they won't speak to me.

Does anyone know why he is receiving these? and what we can do about it?

Thank you

It is possible for you to call up the tax office (and find a cheaper number from saynoto0870.com rather than the 0845) - get your son to do the security checks and then authorise you to speak on his behalf; though this can only be for that one occasion. You can complete a form 64-8
[hmrc.gov.uk/forms/64-8.pdf] that your son signs giving you permission to communicate on his behalf; may be useful to have on record if anything comes up in future and your son doesn't want to call.

I would not recommend ignoring any letters from HMRC. Get this tax return sorted, and let them know if your son is no longer self employed, they may then remove him from self assessment. (Note, HMRC can ask anyone to complete a self assessment, regardless of employment status!)

Good luck!