Late filing fee

[Lizzie90]

Hi,

I'm after some advice for my boyfriend.

He received a letter on the 22nd Aug this year for a late filing penalty. He was reluctant to call them due to past dealings so I wrote a letter on his behalf asking why it was sent. The letter is referring to tax year 15-16 and he worked for a company for 3 months in that year and was claiming JSA before that job so his income was extremely low. He was asked by his ex employer to get a UTR and said they would pay his tax and NI so he thought nothing of it. The letter also states 2006 and 2007 self assessment we're not completed but doesn't list any charges for those years just the £100 for 15-16.

It would appear now that by asking for a UTR it means you are self employed and should do a self assessment.

Anyway they didn't respond to the letter by way of a proper response instead they sent a statement now listing the original £100 charge, a further £900 charge and then a £300 charge aswell as penalties for 2008-2011 totalling 2.5K so you can imagine it came as a shock. To date he hasn't received any prior letters to the one dated 22nd Aug.

So my questions are:

Why are HMRC now quoting years 08-11 when it was different years listed in their original letter (06&07) dated 22nd Aug?

Note he worked for a company in 08 and was self employed for 2 weeks at which point they took him on as paye. He did complete his self assessment at the time but they claimed he didn't.

Should I expect a written reply from my letter or is their statement their way of replying?

What are his options? He genuinely didn't realise a UTR meant he had to do a self assessment and received no further letters until the 22nd Aug either. We believe now that he was subcontracted under CIS but at the time he thought he was paye.

I called today but because their system was down they couldn't give me answers, he gave me permission to speak to them but as I'm going to Amsterdam tomorrow I worry that the 2.5K is increasing as time goes on.

Any advice would be much appreciated.

I have also contacted national debtline and they suggested him do a budget plan and by doing that his money left over is £68 to potential debt. But in a rosey world I would like the costs waivered, or am I wishing here???

[SteLacca]

With regards to the most recent years, first, being 15/16 and 16/17, no penalties have been levied for 16/17 because it isn't past due, yet. However, if all income has been taxed at source he can ask for the Returns to be withdrawn under TMA 1970 S.8B. Explaining his income sources to support this is necessary, and the Returns should not be submitted whilst this is requested.

For the earlier years, 2008 - 2011, were notices to file in those years sent to him? If so, why is he only just thinking about them? If not, the penalties for non-submission cannot be charged. It is possible that HMRC think that there may be a failure to notify chargeability (TMA 1970 s.7) and so are levying a penalty for that. Again, however, if there was nothing to tell them about then no obligation under S.7 arises and an appeal should be sent.

[bd6759]

It is possible that HMRC think that there may be a failure to notify chargeability (TMA 1970 s.7) and so are levying a penalty for that.

That is not possible. A FTN penalty is tax geared, based on the tax that has been assessed. There cannot be a penalty without the underlying tax charge as well.

Under the circumstances, your boyfriend might be able to get help from taxaid.org.uk.

[robbob]

aswell as penalties for 2008-2011 totalling 2.5K

This seems about right if we say the returns were issued (hmrc's version of reality that is) but never submitted - for ye 5/4/2011 it could be a full monty £100 late filing £900 daily and 2 lots of £300 for 6 and 12 months late - total 1,600 - the earlier years would probably be £200 A pop.

[Lizzie90]

Hi

Sorry I only just seen the replies after getting back off holiday. To clarify I didn't mean 16/17 the main bulk of the charges are for 15/16

Interestingly his mom had a call on her landline where my boyfriends addressed is registered too asking when he can pay it but I thought HMRC didn't call you? Unless it's DCA ....

Anyway regarding the returns withdrawn if he was taxed at source does this mean that if he can prove his contractor taxed him he doesn't he can apply to get the SA request withdrawn?

He can't apply for taxaid at his income now is way over their threshold and wouldn't be classed as low income unfortunately.