Self Assesment - Eye-watering fine

Money_Hero

Hi All,
First a little background..
I was an employee on PAYE during the 10/11 tax year up until 13th March 2011, after that I became non-resident and moved overseas. Still have a house in UK I've rented out since 25th March 2011.

I filled in leaving UK (P85) and non-resident landlord forms indicating that my rental income would be way below income tax threshold. Never received a tax return request from HMRC, although they did contact me about a rebate I was owed.

So a few days ago I got a letter saying I owed £1200 for late 10/11 filing _pale_. I called HMRC to say I never received a request, but they're insisting one was sent to me. Would I have any chance of appealing this?

The kicker is that I don't actually owe any tax and so I would have submitted immediately. The size of the fines are just plain crazy

Skint_yet_Again

So are you saying that the only correspondence you have received from HMRC since you left the UK is your tax rebate (from the P85) and a penalty notice ?

As a non resident landlord you would have filled out a form NRL1, so did you not receive any letters to show this had been dealt with ? Did you not receive the letter welcoming (!) you to self assessment, or the tax return or notice to file which would have been issued in the april at the end of the tax year, or any of the reminders which would have been issued regarding filing your return on time ?

Best bet is to file the return which you must now complete, and appeal in writing against the penalty if you have had problems with receiving post abroad and hope for the best !

chrismac1

I don't find this strange. Just this morning I got a P6 notice of coding for a client for an employee who has never worked for my client. Both myself and my client have called HMRC about 6 months and 9 months ago to get them to send these notices to the correct employer.

Last week I got employment paying in booklets for two clients who I ceased to act for a year or so ago. I checked online last week and neither is showing on my client list. I was confident I changed my client list when I resigned these clients, but you never know maybe I forgot, albeit it is always 90% in these cases that it's just HMRC being slow.

Never a month goes by but a client calls to follow up missing HMRC correspondence due to an address change. Again, in 90% of cases I have changed the address with HMRC online, at Companies House (who incidentally manage to deal with these changes promptly and accurately 95% plus of the time).

This general incompetence - if it applies in your case and you can produce some supporting evidence - is your way out of these fines. It may take up to 6 letters spread over a 12 month period, but if you can show that they've been sending mail to the wrong address despite being informed of the change, you'll win in the end.

John_Pierpoint

I thought the tenant was supposed to deduct standard rate tax before paying a non resident landlord ?
Well it was 20 years ago - have the rules changed ?

00ec25

John_Pierpoint wrote: »

I thought the tenant was supposed to deduct standard rate tax before paying a non resident landlord ?
Well it was 20 years ago - have the rules changed ?

if the LL has registered under the NRL and HMRC accept, then the LL is granted the privilege of gross tax in return for committing to do a tax return

its all explained in the rules if you read them
http://www.hmrc.gov.uk/international/nr-landlords.htm

sleepless_saver

Money_Hero wrote: »

Hi All,

So a few days ago I got a letter saying I owed £1200 for late 10/11 filing _pale_. I called HMRC to say I never received a request, but they're insisting one was sent to me. Would I have any chance of appealing this?

There's nothing to lose by appealing. Check if there's a time limit for it. There's a form on the HMRC website for appeals against penalties for late payment. You can tell them what happened and that you did not receive a request with whatever supporting evidence you can muster, explain that you do not owe any tax, and ask them to withdraw the penalty. They probably won't do this if the tax return is still outstanding, so get it completed and send it in with the appeal.