HMRC want self assessment tax return despite informing them no longer self-employed

elizabethbennett_2

Hi, husband ceased self-employment as a sole trader mid 2022 and is now a PAYE employee. HMRC were informed at the time and also on final tax return last year (22-23). They have now sent a letter saying he needs to file SA tax return for 23-24. Obviously no self employed income and no other relevant income. The letter says "if you don't think you need to file a return" search that phrase on gov.uk so he did and filled in the relevant form. However, not heard anything back and it is getting close to 31st January. Is it best to just file the return anyway? Is that possible if you have no self employed income or any other self-assessed income? Don't want to be lumped with a fine :-( Thanks for any advice

Nomunnofun1

Personally I would file the return and put a note in the additional information to state the above. 

Check after 6th April whether a notice to file is issued for 2024/25 and, if it has, contact HMRC by telephone to remove. It will be much quieter then. 

eskbanker

elizabethbennett_2 said:

Hi, husband ceased self-employment as a sole trader mid 2022 and is now a PAYE employee. HMRC were informed at the time and also on final tax return last year (22-23). They have now sent a letter saying he needs to file SA tax return for 23-24. Obviously no self employed income and no other relevant income. The letter says "if you don't think you need to file a return" search that phrase on gov.uk so he did and filled in the relevant form. However, not heard anything back and it is getting close to 31st January. Is it best to just file the return anyway? Is that possible if you have no self employed income or any other self-assessed income? Don't want to be lumped with a fine :-( Thanks for any advice

Someone whose only income is taxed via PAYE should be able to exit from self-assessment, but for as long as such returns are being completed, they need to include all taxable income, i.e. earned income subject to PAYE still needs to be declared on SA if completing one (it'll usually be pre-filled on the employment page(s) anyway).

elizabethbennett_2

eskbanker said:

Someone whose only income is taxed via PAYE should be able to exit from self-assessment, but for as long as such returns are being completed, they need to include all taxable income, i.e. earned income subject to PAYE still needs to be declared on SA if completing one (it'll usually be pre-filled on the employment page(s) anyway).

Good to know, thanks

elizabethbennett_2

Nomunnofun1 said:

Personally I would file the return and put a note in the additional information to state the above. 

Check after 6th April whether a notice to file is issued for 2024/25 and, if it has, contact HMRC by telephone to remove. It will be much quieter then. 

Thanks, yes seems safest option