Urgh, late filing penalty

Fay_elizabeth

Hi all,

I have been thinking about going self-employed for a while, back last year I was reading about self assessment etc on the HMRC website and I signed up just to see what I'd have to do, however I never registered my unique tax reference number or paid anything seeing as I just wanted to see how things would work.

Finally, last month I went fully self employed and signed up for self assessment, N.I contributions etc. I received my unique tax reference last week.

However today I got a letter from HMRC stating I have late penalty charges for the year ended April 2012 of £1200. How do I owe them this money? Do they think I've been self employed all this time?

I'm really stressing out over this, can anyone help?

uknick

Does seem strange as the penalty is for a tax year you say you were not self employed. Why has it taken them so long to send you the letter? The penalty also seems high; is it just for late filing or does it include interest for late payment of tax?

Are you sure the letter is from HMRC and not some sort of scam?

If it is from them, why not call them. If it is a mistake from HMRC, it could be worth the wait to get through.

nomunnofun

Fay_elizabeth wrote: »

Hi all,

I have been thinking about going self-employed for a while, back last year I was reading about self assessment etc on the HMRC website and I signed up just to see what I'd have to do, however I never registered my unique tax reference number or paid anything seeing as I just wanted to see how things would work.

Finally, last month I went fully self employed and signed up for self assessment, N.I contributions etc. I received my unique tax reference last week.

However today I got a letter from HMRC stating I have late penalty charges for the year ended April 2012 of £1200. How do I owe them this money? Do they think I've been self employed all this time?

I'm really stressing out over this, can anyone help?

I think that you are confusing self-assessment with online filing of tax returns and this could well have cost you.

When you 'signed up' you effectively informed HMRC that you were required to complete a self-assessment tax return and a UTR is allocated to you.

At the same time two letters, one with a PIN, are issued - this is to enable you to register for online filing. It appears that you did not activate this within the strict deadline (28 days I believe)

As far as HMRC is concerned, you have registered for self assessment and will not be filing your tax return online but manually.

http://www.hmrc.gov.uk/helpsheets/sa370-notes.pdf

You need to act urgently. The worst case and very possible scenario is that HMRC will DETERMINE the tax due for 2011/12 and you will have a nigh impossible job to avoid paying this - even if you have made no money. Time is of the essence here!

Seek advice.

AlexMac

Did you also, or alternatively register for NI? If so, is this an NI billl? Earnings under about £4500-5k used to mean you could retrospectively apply for exemption and repayment - I think. so another thing to check. Good luck!

nomunnofun

AlexMac wrote: »

Did you also, or alternatively register for NI? If so, is this an NI billl? Earnings under about £4500-5k used to mean you could retrospectively apply for exemption and repayment - I think. so another thing to check. Good luck!

I would be doubtful about that. £1200 is appropriate at the 'six month late stage' - I would expect a further £300 at the end of January (12 months late)

dori2o

Fay_elizabeth wrote: »

Hi all,

I have been thinking about going self-employed for a while, back last year I was reading about self assessment etc on the HMRC website and I signed up just to see what I'd have to do, however I never registered my unique tax reference number or paid anything seeing as I just wanted to see how things would work.

Finally, last month I went fully self employed and signed up for self assessment, N.I contributions etc. I received my unique tax reference last week.

However today I got a letter from HMRC stating I have late penalty charges for the year ended April 2012 of £1200. How do I owe them this money? Do they think I've been self employed all this time?

I'm really stressing out over this, can anyone help?

Simple to sort out.

Phone the Self Assessment helpline and tell them you wish to object to the filing of the 2011/12 and 2012/13 tax returns because although you originally registered you didn't actually start trading until last month.

As long as you meet none of the other criteria they will cancel the previous returns and associated penalties and arrange for the 13/14 tax return to be issued from 6 April 2014.

John_Pierpoint

Let us know how you get on.

Delphina

dori2o wrote: »

Simple to sort out.

Phone the Self Assessment helpline and tell them you wish to object to the filing of the 2011/12 and 2012/13 tax returns because although you originally registered you didn't actually start trading until last month.

As long as you meet none of the other criteria they will cancel the previous returns and associated penalties and arrange for the 13/14 tax return to be issued from 6 April 2014.

Worth a try but does not always work. If it does not work, submit the 2011-2012 urgently and along with the return write a cover letter clearly state that you wish to appeal against the penalty and, if applicable, any incurred interests and give your reasons to support your appeal!