Self employed driver - tax arrears

Dal_Whinnie

My Grandson (now 21) was employed by Amazon as a self employed driver for about a year from November 202. The effect is that he has underpaid tax for 21/22 and 22/23. Unfortunately he didn't put anything aside for his tax and more importantly, did not submit a tax return. He has recently received reminders from HMRC but ignored these due to ignorance/inertia(!) and is now liable to penalties as well as outstanding tax. He does not have any money to pay these so I suggested he phoned the number on the letters received from HMRC. However, apparently he has not been able to get through on this. He needs to register online and submit tax returns but does anyone have any other ideas on contacting HMRC to sort his position out which is sadly due to lack of financial awareness.

Dazed_and_C0nfused

Does he actually need to contact them?

Filing the outstanding return (2022-23 doesn't have to be filed until 31 January 2024) and, if he has a valid reason, appealing the penalties is the priority.

Neither of which can be done on a phone call.

Delaying submission of the return will only make matters worse.

Dal_Whinnie

Dazed_and_C0nfused said:

Does he actually need to contact them?

Filing the outstanding return (2022-23 doesn't have to be filed until 31 January 2024) and, if he has a valid reason, appealing the penalties is the priority.

Neither of which can be done on a phone call.

Delaying submission of the return will only make matters worse.

It is the 2021/22 which is late and he won't be able to pay the tax so needs to discuss payment options with HMRC. I don't think he has a valid reason for appealing any penalties but I haven't studied the options here

Dazed_and_C0nfused

I suspect HMRC won't discuss paying the tax as there is nothing (tax wise) to pay until the return is filed.

At least filing a return stops further late filing penalties from accruing though.

sheramber

He has recently received reminders from HMRC but ignored these due to ignorance/inertia(!) and is now liable to penalties as well as outstanding tax.

Does that not mean he  is registered for self assessment and has been sent a tax return for 21/22 which he has not not completed and submitted? 
 Does he still have that return?


Or has he registered online and was sent a notice to file?  

If he needs a short tax return for 21/22 then he needs to request one from HMRC. 

 The self assessment phone line is not available at present but he can contact them online  

https://www.gov.uk/government/organisations/hm-revenue-customs/contact/self-assessment
  

SiliconChip

As well as registering for SA he also needs to concentrate on saving money so that he can pay the tax when it's due, otherwise the penalties will stack up even higher and you can be sure that HMRC aren't going to forget about it.

Dal_Whinnie

sheramber said:

He has recently received reminders from HMRC but ignored these due to ignorance/inertia(!) and is now liable to penalties as well as outstanding tax.

Does that not mean he  is registered for self assessment and has been sent a tax return for 21/22 which he has not not completed and submitted? 
 Does he still have that return?


Or has he registered online and was sent a notice to file?  

If he needs a short tax return for 21/22 then he needs to request one from HMRC. 

 The self assessment phone line is not available at present but he can contact them online  

https://www.gov.uk/government/organisations/hm-revenue-customs/contact/self-assessment
  

The simple answer is, I don't know but I don't think he has registered online, will have a word with him

Dal_Whinnie

SiliconChip said:

As well as registering for SA he also needs to concentrate on saving money so that he can pay the tax when it's due, otherwise the penalties will stack up even higher and you can be sure that HMRC aren't going to forget about it.

Tell me about it, sadly seems to think that if he has money in his account he can go out and spend it!!
We were never sure of his status at Amazon because never appeared to have any of the badges of self employment but that is apparently  how it has been dealt with which is partly why he is in the current situation but he should have dealt with things as they arose.