Want to declare tax, but don't want to be clobbered with penalties!

Brianberwin

Or: 'Does the £1200 penalty apply to a Failure To Notify'?

I've been a bit of a silly-billy. I have been receiving property income for about 10 years, which I believed my PA always covered. Recently I thought I'd do a summary and discovered to my horror that although this was correct fro the first 6 years, in the last 4 years my income has exceeded my PA. I owe about £3.5k tax for the last 4 years income.

However I dont have a UTR, never submitted a Self Assessment return and moreover have never had any correspondence from HMRC.

I am willing to pay the tax I owe but really, really don't want to pay the £1200 penalty I keep hearing about. Am I correct that this is only for people who are registered for SA but disregard HMRC communication, and as such would not apply in my case ?

Thanks...from a nervous Brian.

nomunnofun

There was a similar thread here:

https://forums.moneysavingexpert.com/discussion/4459809

Rather than repeat what was said, you may wish to read as much of the advice as it may also be applicable to you. You will certainly have to pay interest on the final tax due (it is not penal!) but the £1200 that you mention as a penalty sounds hefty and possibly has come from one not necessarily the font of all knowledge in this area. Co-operation and full disclosure are huge points in favour of anyone in your and similar situations.

somethingcorporate

Grovelling helps (honest mistakes etc).

I'd suggest dealing with it opening and honestly is your only chance of avoiding any clobbering. The only alternative is to bury your head and compound the problem.

HMRC are not (always) monsters so if you do have a penalty to pay (and £1,200 sounds way too high) then I am sure you can add it onto your repayment of tax due.

spursfan323

somethingcorporate wrote: »

HMRC are not (always) monsters so if you do have a penalty to pay (and £1,200 sounds way too high) then I am sure you can add it onto your repayment of tax due.

As I said I dont mind paying the tax and reasonable penalties. But £1200 seems exorbitant. My issue is that while I have read up about it with a simple google search revealing it was introduced in Aug 12, those same articles link to HMRC articles which imply the penalties are only for those already 'in the system' - e.g. https://www.hmrc.gov.uk/sa/forms/late-return.pdf which would seem to exclude me. It's all as clear as mud really.

gb12345

Brianberwin wrote: »

Or: 'Does the £1200 penalty apply to a Failure To Notify'?

I've been a bit of a silly-billy. I have been receiving property income for about 10 years, which I believed my PA always covered. Recently I thought I'd do a summary and discovered to my horror that although this was correct fro the first 6 years, in the last 4 years my income has exceeded my PA. I owe about £3.5k tax for the last 4 years income.

However I dont have a UTR, never submitted a Self Assessment return and moreover have never had any correspondence from HMRC.

I am willing to pay the tax I owe but really, really don't want to pay the £1200 penalty I keep hearing about. Am I correct that this is only for people who are registered for SA but disregard HMRC communication, and as such would not apply in my case ?

Thanks...from a nervous Brian.

spursfan323 wrote: »

As I said I dont mind paying the tax and reasonable penalties. But £1200 seems exorbitant. My issue is that while I have read up about it with a simple google search revealing it was introduced in Aug 12, those same articles link to HMRC articles which imply the penalties are only for those already 'in the system' - e.g. https://www.hmrc.gov.uk/sa/forms/late-return.pdf which would seem to exclude me. It's all as clear as mud really.

Oops, looks like someone forgot which new username they set up for the first post :rotfl:

So is it you or "your friend" who has the problem https://forums.moneysavingexpert.com/discussion/4407487