Just discovered letter from HMRC saying I owe £2400 for "overdue returns and penalties"

derobe

HMRC have sent me this letter. I assume it is for a company I briefly had in 2017/2018. I was convinced to start the company by dodgy business partner (who forced me to return money to him a few months in to resign from the company) and a shady accountant who seemed to be working with him.

The company was dissolved via compulsory strike off in 2019, that's the last I heard, no money was really made and certainly would not have been enough income to tax, the accountant said that they had filed the self-assesment, so I don't know why I'm now receiving this from HRMC.

I can't pay this and don't see why I should given the above.

Been on hold to them for over an hour.. I have a feeling they are going to try and force me to pay this. Please advise on how I can get out of this and avoid any payment.

molerat

the accountant said that they had filed the self-assesment,

Did they though ?

Is this claim for personal tax or company tax ?

If they did not file then it could well be a legitimate payment.  You obviously need to work out the details but you won't be able to just walk away from it, you need to cooperate with them.

Surely you can look back through your tax account and see ?

derobe

Company tax.. I got through to someone and they said it was a legitimate payment, then said they'd put me through to someone else who may be able to help and waive the charges/mark it as nil returns - they just put me through to a line to pay the charges!

She said one return had been filed in 2017 I assume by my accountants but that was it.

Surely I don't have to pay anything here, no money was made in the company and it was dissolved in 2019 anyway, so they are saying I owe money from 2019 until now... but I haven't heard anything from them, they've not emailed me.. the letter is dated 21 July 2022 but I've not had one previously saying I owe money and we're talking about 3+years worth of fines which have been accruing which I knew nothing about

swabaxter

I would suggest obtaining a full statement from HMRC showing the relevant amounts and dates.
Obtain a copy of your company accounts from Companies House and try to reconcile the two.
Good Luck.

derobe

It's probably worth noting I was employed from March 2018 until July 2022. So for nearly all of the time they are saying I hadn't filed returns, I was paying PAYE anyway?? If anyone knows if this will help my case that would be appreciated. It's not like I've been dodging tax.

molerat

Your personal tax affairs and any tax the company owes are completely separate.

Dazed_and_C0nfused

derobe said:

It's probably worth noting I was employed from March 2018 until July 2022. So for nearly all of the time they are saying I hadn't filed returns, I was paying PAYE anyway?? If anyone knows if this will help my case that would be appreciated. It's not like I've been dodging tax.

That is irrelevant.  Lots of people only on PAYE need to file Self Assessment returns.

sheramber

You can be in employment and a director of a limited company at the same time , so that won't help.

It would appear that when the company was dissolved the accountant did not finalise the tax affairs- probably because he would  not get paid.

Directors are singly and jointly responsible for submitting the company accounts/returns.

What you have received is a demand for penalties due to returns not being submitted. HMRC may have been trying to trace the responsible parties. 

derobe

Ok, how do I avoid paying given the circumstances?

eskbanker

derobe said:

Ok, how do I avoid paying given the circumstances?

You need to establish the circumstances first, i.e. exactly what happened to the company and its tax liabilities, via the research suggested above - it's only after this has been completed that your personal liability (if any) can be ascertained....

derobe

Thank you, the system is a shambles. Their telephone system seems to be malfunctioning, when I do get through to someone I get cut off. I spoke to someone who said he could waive two years instantly and then I would have to appeal at the .gov site for the rest, he cut me off before he got the chance to provide more details and I don't have the energy to ring back after spending over 3 hours on hold and being cut off twice already.

Not sure if he has waived the charges I'll have to call back tomorrow to find out.