3 jobs, 2 on BR tax code - what happens if earning over the limit for upper level tax

jimmo

xylophone wrote: »

He'd be well advised to contact HMRC before they contact him?

To stress that point if your friend was liable to higher rate tax for 2011/12 he is guilty of Failure to Notify Liability. For 2012/13 he needs to notify by 5 October.

http://www.hmrc.gov.uk/manuals/emmanual/EM4551.htm


Many people share your view that HMRC is useless and that they really should have picked up on your friend’s situation before now but the cold fact is that the law is on HMRC’s side and, if your friend has committed an offence for 2011/12, they can charge him the tax due, interest and penalties.

However any higher rate tax for 2012/13 is not payable until 31 January 2014.

If he is liable to penalties it is much better for him to make a voluntary, unprompted disclosure than to wait and see whether HMRC come sniffing.

That, I am afraid, is the game your friend is, perhaps unwittingly, playing.

He can own up, pay the tax plus interest and face a minimal penalty or he can do nothing.

If he does nothing and HMRC are as useless as you think, he’ll get off Scot-free but if they do catch up with him it will cost a lot more and they could easily have 20 years to catch up.

http://www.hmrc.gov.uk/manuals/chmanual/CH53600.htm

fimonkey

Well that was easy and interesting. Called tax office, super helpful and all is well. Said he was close but they would write to him if he goes over.

10 mins on phone too. Good stuff n thanks all