HMRC fine for late tax return.

Troy_af

Hello. Looking for some advice on this situation.

I am serving in the armed forces and I apply for a tax refund every year, for tax relief on fuel, food etc. I use a seperate company to do this, JNR accounting. Due to covid they have not been operating and therefore have not filed my tax return. I have now received a penalty notice from HMRC saying I am being fined 100. Worse still they have threatened further fines at 3 month, 6 month etc. I wouldn't even know how to go about filing a tax return, hence why I pay a seperate company to do it on my behalf.

I have tried contacting HMRC with no luck over the phone getting through to anyone. It's all just computerised messages referring you to use there website. I have applied to take myself off self assessment and have also appealed the fine using the online service, although it did say the appeal may not be successfully if you have still not filed the return. 

Worse still I may be deployed within the next 2 or 3 weeks with no possible way to communicate with HMRC for possibly 6 month. Webchat is not available.. lines are busy or closed. Is there any kind if emergency number or anything possible way to resolve this?

Thanks for any help.

csgohan4

Change account firm, sadly if the firm didn't file, the responsibility will still be yours. I learnt that the hard way.

If your accounts are simple, research in filing your own tax returns, the HMRC gov portal is simple to use once your used to it.  I use to file my own tax returns before it got too complicated. 

Troy_af

csgohan4 said:

Change account firm, sadly if the firm didn't file, the responsibility will still be yours. I learnt that the hard way.

If your accounts are simple, research in filing your own tax returns, the HMRC gov portal is simple to use once your used to it.  I use to file my own tax returns before it got too complicated. 

Thanks. Well I'm running quite short on time so I was just going to attempt to take myself off self assessment and therefore not go ahead with the tax refund for the 2019/2020, then sort it out when I'm back later on in the year. Would that be possible, or will I still need to do the tax return for that year since i am currently registered for self assessment right now?

csgohan4

you will need to file a tax return if hmrc has asked you to, unless your circumstances have changed for that tax year. 

Troy_af

csgohan4 said:

you will need to file a tax return if hmrc has asked you to, unless your circumstances have changed for that tax year. 

Yes but the only reason I needed to file one in the first place was because I was going to claim for a tax refund for that year. That's why I was registered for self assessment.  What if i don't go ahead with the tax refund claim for that year, surely there would be no need to file a tax return then?

Dazed_and_C0nfused

You want to try and avoid a £100 penalty by forever giving up the tax refund for that year?

Don't forget if HMRC provisionally allowed expenses in your tax code for 2019:20 you will possibly end up with a much bigger tax bill than the £100 penalty.

Troy_af

I mean I don't mind paying the 100 fine if it means that will be the end of it. But the fine is for filing a tax refund late.. I won't be filling it at all because I don't need to. I checked using their online service questionnaire to see if I need to be in self assessment and it says no i do not. So that will class as changed circumstances will it not?
Thanks. 

unholyangel

Troy_af said:

csgohan4 said:

you will need to file a tax return if hmrc has asked you to, unless your circumstances have changed for that tax year. 

Yes but the only reason I needed to file one in the first place was because I was going to claim for a tax refund for that year. That's why I was registered for self assessment.  What if i don't go ahead with the tax refund claim for that year, surely there would be no need to file a tax return then?

Then you should have deregistered. 

Because you didn't, HMRC would have sent a notice to file. If you receive a notice to file, you're required to file. Sometimes you can get them to withdraw the notice, but you might have difficulty convincing them that they should withdraw just so you can avoid penalties now and file whenever suits you. What would be the point in having penalties in that instance?

theoretica

If this is a thing for people in the armed forces to do then I suspect lots of other people are also doing it and I would expect the support available to you through work to understand it and be able to advise.

Troy_af

unholyangel said:

Troy_af said:

csgohan4 said:

you will need to file a tax return if hmrc has asked you to, unless your circumstances have changed for that tax year. 

Yes but the only reason I needed to file one in the first place was because I was going to claim for a tax refund for that year. That's why I was registered for self assessment.  What if i don't go ahead with the tax refund claim for that year, surely there would be no need to file a tax return then?

Then you should have deregistered. 

Because you didn't, HMRC would have sent a notice to file. If you receive a notice to file, you're required to file. Sometimes you can get them to withdraw the notice, but you might have difficulty convincing them that they should withdraw just so you can avoid penalties now and file whenever suits you. What would be the point in having penalties in that instance?

unholyangel said:

Troy_af said:

csgohan4 said:

you will need to file a tax return if hmrc has asked you to, unless your circumstances have changed for that tax year. 

Yes but the only reason I needed to file one in the first place was because I was going to claim for a tax refund for that year. That's why I was registered for self assessment.  What if i don't go ahead with the tax refund claim for that year, surely there would be no need to file a tax return then?

Then you should have deregistered. 

Because you didn't, HMRC would have sent a notice to file. If you receive a notice to file, you're required to file. Sometimes you can get them to withdraw the notice, but you might have difficulty convincing them that they should withdraw just so you can avoid penalties now and file whenever suits you. What would be the point in having penalties in that instance?

I haven't de-registered because I was waiting for JNR accounting to file the return. I've only just found out this weekend that they haven't. It's not about when suits me.. the company are not operating due to covid. I don't care about getting a tax refund right now, I care about not having fines pile up when I'm not even going to be here to deal with any of it. Which is why I said I don't mind paying the fine.. but will they continue with the fines after this? 

I don't see how to get out of this right now. I'm being fined for not sending in a tax return, yet I won't be sending one because there is no longer a reason for me to.

Thanks for all the advice.

Troy_af

theoretica said:

If this is a thing for people in the armed forces to do then I suspect lots of other people are also doing it and I would expect the support available to you through work to understand it and be able to advise.

Horrific support from the armed forces in these situations unfortunately.  I'll be deployed in 3 weeks time regardless of any financial problems.