HMRC Late Tax Return Notice of Penalty Assessment.

blobbyrob

I stopped being self employed in Dec 2018 when I was given a permanent contract with the company I currently work for. I stupidly didn't realise that I needed to remove myself from self assessment (which I have just done online today) 
Today I received a letter from HMRC stating that "We've charged you a £100 penalty because we didn't receive your tax return for the 2019-2020 tax year on time"

Can anyone tell me if I still have to pay this fine even though I have just removed myself from self assessment? 

Annoyingly It says I need to pay the penalty within 30 days of the date of this letter (dated 09/03/2021) even though today is 22/03/2021 so have already lost 13 days.

Grateful for any help cheers.

yorkiechick

Unless they withdrew your 19/20 tax return when you closed your self-assessment account, the penalty will stand. You could try appealing but I'd pay it off first and make sure you get your 2020 tax return submitted asap

sixtyfoothigh

I’d hold off on paying until you’ve spoken to them. My husband received a penalty today and although we couldn’t get hold of them via phone they did respond on Twitter. They said:

”I suggest checking with the tool if any other criteria are met and sending a request for the return to be cancelled at the end of the process if you don’t need to send one in for 19/20. https://www.gov.uk/check-if-you-need-tax-return“

Tbh he was sure that he’d already submitted to be removed from self assessment and when he logged into the portal found that he had, they just hadn’t proceed it yet. But that above advise was from their Twitter account when we asked what he could do about receiving a penalty.

You can also appeal the penalty via their website.

sixty x

blobbyrob

Thanks both.
I have tried the phone route a couple of times without any luck. It looks like I'll have to pay the penalty first, then appeal as the 30 days deadline for paying is fast approaching.

sixtyfoothigh

I've just discovered that tweeting is the easiest way to get a response. What an age we live in...!

sheramber

blobbyrob said:

Thanks both.
I have tried the phone route a couple of times without any luck. It looks like I'll have to pay the penalty first, then appeal as the 30 days deadline for paying is fast approaching.

best time to phone is a few minutes before  the phones  open.

blobbyrob

sixtyfoothigh said:

I've just discovered that tweeting is the easiest way to get a response. What an age we live in...!

I took your tweeting advice in the end as couldn't get through on the phone. 

If it helps anyone else.
My question: Do I still have to pay the penalty even though I have now removed myself from self assessment? 
Answer from HMRC Customer Support:  No you won't. Once you've been removed the penalties are cancelled.

yorkiechick

I would keep an eye on your account and wouldn't take what they say on Twitter as golden.
Does your 2020 tax return show a received date?

blobbyrob

yorkiechick said:

I would keep an eye on your account and wouldn't take what they say on Twitter as golden.
Does your 2020 tax return show a received date?

I didn't file a tax return for 2020 as I wasn't self employed at the time. My mistake was not removing myself from self assessment at that time but have now done.

Thanks yes I will keep an eye on my account.

sixtyfoothigh

TBH I've found they're pretty good about cancelling penalties when no tax is actually due. They don't like cancelling them if you're late and actually owe tax. The first year my husband was self-employed he got seriously ill and missed the deadline, and when he rang them they just said that if he filled it in late (it was a couple of weeks late) and didn't owe tax they'd just automatically cancel it.
I'd screenshot the twitter conversation just in case they delete it and you want it as evidence of what you were told. Although it's not the same as actually seeing your account updated, and you can't ignore this matter until that happens, they list twitter on their "contact us" page and you can hold any organisation to account on what they tell you via official channels.
Sixty x

blobbyrob

sixtyfoothigh said:

TBH I've found they're pretty good about cancelling penalties when no tax is actually due. They don't like cancelling them if you're late and actually owe tax. The first year my husband was self-employed he got seriously ill and missed the deadline, and when he rang them they just said that if he filled it in late (it was a couple of weeks late) and didn't owe tax they'd just automatically cancel it.
I'd screenshot the twitter conversation just in case they delete it and you want it as evidence of what you were told. Although it's not the same as actually seeing your account updated, and you can't ignore this matter until that happens, they list twitter on their "contact us" page and you can hold any organisation to account on what they tell you via official channels.
Sixty x

Great Info. I didn't think of the Twitter screenshot so I'll do that now.

Cheers Sixty.