HMRC and Self-assessment

nairevilo

I'll get straight to the point. I am 70 years old and basically live on a State pension - I have no savings. I was working up until December 2019. I paid all my taxes. But for the last 18 months or so HMRC has constantly bombarded me with letters about non-self-assessments. They have charged me on a monthly basis - it now stands at £1646.00. I have written to them about three times this year alone to say an OAP with NO job does not have to do self-assessments. Even on its website, it states this fact. Well, two days ago I got a letter threatening to start taking money from my monthly pension payment. This is both threatening and damn right evil. What can I do?

comeandgo

You could start with completing the outstanding forms.  HMRC advise you when you stop completing them, it’s not your choice.

Dazed_and_C0nfused

nairevilo said:

I'll get straight to the point. I am 70 years old and basically live on a State pension - I have no savings. I was working up until December 2019. I paid all my taxes. But for the last 18 months or so HMRC has constantly bombarded me with letters about non-self-assessments. They have charged me on a monthly basis - it now stands at £1646.00. I have written to them about three times this year alone to say an OAP with NO job does not have to do self-assessments. Even on its website, it states this fact. Well, two days ago I got a letter threatening to start taking money from my monthly pension payment. This is both threatening and damn right evil. What can I do?

You are so wrong there.  It might be unusual but some people receiving State Pension get more than the Personal Allowance and could need to complete a Self Assessment return.

What can you do?

Why not find out the specific reason why HMRC believe returns are needed.  That seems a logical starting point.  You will be much better informed them, rather than jumping to conclusions.

sheramber

Did you complete returns when you were working?

If so, until you complete returns showing there is no longer a need for them then HMRC will update your records.

HMRC do not assume that you non longer need to complete a return .

If you are asked to complete a return you are required to do so. Until you submit the outstanding returns penalties will keep escalating.

If you only have state pension to declare then returns will be easy and quick to complete.

nairevilo

Thanks for your comments. If you go onto their website it clearly states that if your sole means of income is a State pension and no other means of income, then you don't need to do a self-assessment. I sent them another letter this morning informing them that I might have to take legal advice because I don't want this dragging on for another 18 months!  

[Deleted User]

nairevilo said:

Thanks for your comments. If you go onto their website it clearly states that if your sole means of income is a State pension and no other means of income, then you don't need to do a self-assessment. I sent them another letter this morning informing them that I might have to take legal advice because I don't want this dragging on for another 18 months!  

You are correct in what you say regarding the criteria for completing a tax return. However this would be superseded where HMRC have issued a notice to file, which it clearly has. You must complete the returns and then you can negotiate on the penalties. 

Have a read of this.

https://www.gov.uk/hmrc-internal-manuals/self-assessment-legal-framework/salf203

Jeremy535897

See https://www.litrg.org.uk/tax-guides/tax-basics/do-i-need-complete-tax-return

HMRC may be persuaded to withdraw a tax return if there was no reason for it to be issued, and if they do, any associated penalty charges are waived. The link above sets out when you need to file a tax return.