Self Assesment Crisis, Need advice!

brisck1

Hi,

Over the past 3-4 months i've been desperately trying to file my taxes via the online self assesment website but have run into one problem after another.

During May 2006 - Feb 2007 I took a some time out from full time employment to work on my portfolio so that I could get a better job. In between I knew i'd probably be doing a few small jobs for my previous employer so i registered myself a self employed to make sure everything was legit tax-wise. As time went on I only ended up taking on a couple of jobs from which my total income was only around £1200-1500. In Feb 2007 I got a job offer from a company in Sweden and in April moved over there to start work with them. I tried to do my self-assesment before I left but was told the it was too soon to do so, so I was left only with the choice of doing it online once I came to Sweden (where i still reside).

In late september last year I had my first attempt atthe online SA but hit a wall when I had to enter my Unique Tax Reference. I rang the tax office, notified them of my new address etc (which they should have had already when I unregistered as Self Employed) and asked them for my UTR. Unfortunately they told me I couldnt recieve it via telephone and they would send it to me in the mail. Weeks went by and still not UTR in the post, so I tried again...and again.. and finally on the fourth attempt which was in december something must have clicked as I recieved my UTR in the post on Jan 7th (another long wait! I almost had to ring again).

So finally, I had my UTR! Went to the website, registered and... I found out they had to post my password now!!! As you can imagine I was in deep panic by this. It had taken months to get hold of my UTR and now I had this with only mere weeks remaining until the deadline! I rang the tax office and explained my worries and asked if there was any way to speed up or double check the mail was sent. I was just told not to worry and there was plenty of time and it was all done by computer etc etc. But I've now been waiting weeks with no sign of this password and with the dayline days away im a wreck. Especially after reading the warning letter about the deadline (which had no problems getting here might I add!) and all of the fines I have to pay for delays!!

My question is, what on earth can I do to stop this disaster from unfolding? I cant afford the £100 +£60 per day +interest fines and im completely at the mercy of the tax office postal service. Worst of all is that Im pretty sure im under the threshold of even paying tax for that year, but now it seems i'll be forking out more than if i'd paid full tax on it!!

Im really worried and frustrated about this right now, and any advice you can offer would be greatly appreciated!

Thanks,
Rob

fengirl_2

If you are sure you don't have any tax to pay for the year, what are you worrying about? The £100 fine is the maximum - if your actual tax liability is less or even zero, then that's what you pay.

brisck1

So I will only have to pay £100? What about all of the £60 a day plus interest stuff?

Is there any way for me to get my £100 back also? Im really annoyed that I should even pay that due to the way I've been messed around by waiting for mail that never arrived.

Mikeyorks

brisck1 wrote: »

Worst of all is that Im pretty sure im under the threshold of even paying tax for that year

If the above is correct then (as Fengirl advises you) the failure to file penalty is £100 or the amount of tax due ... whichever is the lower figure. So if you owe nothing - the penalty will be fully mitigated (once the Return is processed)

The daily penalties are for continuing not to file the Return .. and you would be served notice of that before they apply.

brisck1

Mikeyorks wrote: »

If the above is correct then (as Fengirl advises you) the failure to file penalty is £100 or the amount of tax due ... whichever is the lower figure. So if you owe nothing - the penalty will be fully mitigated (once the Return is processed)

The daily penalties are for continuing not to file the Return .. and you would be served notice of that before they apply.

ok thanks! So I guess I will get my money back one the return is filed.

The only problem i have now is what you say in the second paragraph, what if it takes them another two or three weeks to get the bloody password for the site in the mail?? does that mean I'll have thousands of pounds of penalties on my head also? Im also worried this will affect my credit rating or something in some way.

Sorry if im being a bit slow but im really new to most of this stuff so please bear with me

Mikeyorks

No need to 'get your money back'. Provided you get the Return in before end Feb - just ignore any penalty notice (it's automatic) you get ... and the £100 will be neutralised. Provided your Return shows no tax due.

On the daily penalties .. that's not automatic and they need to contact you first .... so you will be OK up to at least end Feb. And way beyond ... if you're not a 'habitual defaulter'? Their instructions :

http://www.hmrc.gov.uk/manuals/dmbmanual/DMBM517020.htm

brisck1

Thanks for the info, it has put my mind at a little more ease. Hopefully By feb everything will be sorted!

Mikeyorks

If you'd let me know I was in Stockholm in June (Baltic cruise) and could have brought your mail over!;) Obviously faster than HMRC 'abroad' deliveries.

It was the day of the Stockholm marathon .... which started, at 1300hrs, in 35C heat - and then got hotter.

brisck1

haha shame yeah, it would have been quicker I bet! I actuallywatched that marathon too last year!