Confused...

C1ueless

I'm hoping someone will be able to help with this.

I was self employed from October 2013 until October 2014.

From October 2014 until December 2015, I was unemployed.

From October 2014 until April 2015, I did not claim any benefits or have any income, and lived off my savings.

At the end of April 2015 until December 2015, I was in receipt of JSA.

I started my job in January 2016 and have been in work since.

I had an Accountant to do my accounts, but then he keeps sending me requests to file my tax return. I have done all of them and now he wants me to do them for April 2015-April 2016.

I don't underst why I have to do this as I have never even earned enough to pay tax and I have never claimed WTC or anything. I think he's just doing it because he knows I'm a soft target. I'm just so scared to get a fine or get in trouble with HMRC when I've never done anything wrong or ever earned enough to even pay tax during the last few years (obviously, tax is deducted from my current wage).

Does anyone know if I should be filing tax returns? I don't think I should? And also, what will happen if I dont? Will I get into trouble as I'm not sure if I'm meant to be doing it!


Please help!

Pennywise

If HMRC have sent you a notice to complete a tax return you need to complete and submit one. So that's the first thing to check, i.e. phone HMRC and ask them if they're expecting one. HMRC have a tendancy to keep asking for them even if they're not needed, so you'd need to tell them over the phone re your circumstances and ask them to withdraw you from SA.

If they havn't asked you for one, then you just need to tell the accountant that one isn't needed.

C1ueless

Hi Pennywise,

Thank you for this.

My Accountant has said to me that they have asked for one and sent me a screenshot of my online HMRC profile to confirm this. However, surely, as you state, I'm unemployed. Why do I need to do it! I can ring them up. He says I might get some tax back.

I was nit earning much from JSA between April 2015 and December 2015. Then when my employer would have given me my wage, in guessing they deduct tax accordingly according to what I've been paid in the tax year because I have to give them my P45 or P60 or whatever it's called?

I don't know if that makes sense, but basically, my current employer will have worked out my tax contribution correctly, so I won't be entutled to tax necessarily anyway?

agrinnall

At this time of year it's probably easier to just do it to make sure you're not liable for a penalty rather than try to persuade them before the end of the month to take you out of SA. After January you can speak to them about being removed before they ask you to file next year.

booksurr

for whatever historcal reason you entered into the tax return system is now irrelevant

you are on the system and HMRC is expecting to get a tax return. If you do not provide you will get the automatic fine which will escalate to a large amount of money if you fail to submit it at all.

Just do it.

You have 2 and a half weeks left and if you need an accountant to do it for you then they are rather busy at this time so make sure you remain on their list of returns to do, otherwise they may say they can't do it for you anymore due to your delay.

sort out coming off the system after 31st Jan when you have plenty of time to play ping pong with HMRC over why you no longer need to do one

C1ueless

Would it not be easier if I just called them and told them that I am no longer self-employed and haven't been for a while?

The Accouuntant seems to think I might get some tax back, but I don't se how that is possible as from April 2015 until December 2015, I was on JSA, so didn't earn anywhere near enough to be eligible to pay tax. And then my salary when I started work in January 2016, they would have worked out my tax code accordingly from the P45 they will have got from Job Centre/ DWP. Even with my JSA income and my salary combined from the tax year of April 2015 until April 2016, I didn't earn enough to be eligible to pay tax, by even if I did, surely, I just need to call the Tax Office and they will send me a cheque?

agrinnall

C1ueless wrote: »

Would it not be easier if I just called them and told them that I am no longer self-employed and haven't been for a while?

You've wasted a week since you first posted, apparently without doing anything, and now have 13 calendar days (9 business days) in which to resolve this. Now is the time to do something, continuing to do nothing will result in penalties and eventually fines.

ThemeOne

In addition to everything suggested above, I would get rid of your accountant - your tax affairs seem fairly straightforward, and he / she seems to have caused more confusion than if you'd dealt with it all yourself.

badmemory

I agree with the above - you must file asap (before HMRCs systems fall over due to the number of people who have left it so late). File, fire your accountant - then speak to HMRC about coming out of SA and remember to ask for it in writing!

Or you could not file, get charged penalties, with luck if enough people do it it may reduce the taxes the rest of us have to pay. Your choice really.