HMRC asks I submit Self-assessment for previous cycle

Fairenough

I registered for my first self-assessment, as I made over £1000 in income in 2022/23. In addition to the letter saying I needed to submit a self-assessment form for 2022/23, I received a letter asking me to do a self assessment for 2021/22.

I made under £1000 in additional income that year, hence why I hadn't declared anything.

I inputted the below:

PAYE 34,000

TAX 4,500

selected no for self-employed income over £1,000

Paid into private pension + boost £2,200

UK bank interest £0.00 (put in the notes it's £0.17)

Gift aid £5

Results says I owe £1,80 in tax. I'm confused as to why I would have to pay taxes since I didn't meet the freshold to submit self-assessment. What I'm worried about if receiving a penalties for late filing/payment, since the system is generating an amount due. Is this likely to happen?
Did I enter something wrong?

The letter said the deadline to file and pay is in March. But online the self-assessment is marked as late.

Dazed_and_C0nfused

Fairenough said:

I registered for my first self-assessment, as I made over £1000 in income in 2022/23. In addition to the letter saying I needed to submit a self-assessment form for 2022/23, I received a letter asking me to do a self assessment for 2021/22.

I made under £1000 in additional income that year, hence why I hadn't declared anything.

I inputted the below:

PAYE 34,000

TAX 4,500

selected no for self-employed income over £1,000

Paid into private pension + boost £2,200

UK bank interest £0.00 (put in the notes it's £0.17)

Gift aid £5

Results says I owe £1,80 in tax. I'm confused as to why I would have to pay taxes since I didn't meet the freshold to submit self-assessment. What I'm worried about if receiving a penalties for late filing/payment, since the system is generating an amount due. Is this likely to happen?
Did I enter something wrong?

The letter said the deadline to file and pay is in March. But online the self-assessment is marked as late.

Most people on PAYE owe a small amount due to how PAYE works.

When was the notice to file a return for 2021-22 issued?  You can only be fined if you fail to file by the deadline, which is a minimum of 3 months after the notice to file is issued.

Interest would likely be charged on any tax paid late but even at 7.75% and owed for a year it's going to be less than 20p.

[Deleted User]

Fairenough said:

I registered for my first self-assessment, as I made over £1000 in income in 2022/23. In addition to the letter saying I needed to submit a self-assessment form for 2022/23, I received a letter asking me to do a self assessment for 2021/22.

I made under £1000 in additional income that year, hence why I hadn't declared anything.

I inputted the below:

PAYE 34,000

TAX 4,500

selected no for self-employed income over £1,000

Paid into private pension + boost £2,200

UK bank interest £0.00 (put in the notes it's £0.17)

Gift aid £5

Results says I owe £1,80 in tax. I'm confused as to why I would have to pay taxes since I didn't meet the freshold to submit self-assessment. What I'm worried about if receiving a penalties for late filing/payment, since the system is generating an amount due. Is this likely to happen?
Did I enter something wrong?

The letter said the deadline to file and pay is in March. But online the self-assessment is marked as late.

On a normal code of 1257L the personal allowance equates to 12570. The PAYE tax tables actually allow 12579 in this instance. The extra 9 allowance at 20% is £1.80. Had you not been required to complete a tax return this would have been waived by HMRC. 

Fairenough

Thank you both.

I've got till March to file. I'll do it now so it's done.