Didnt do my SA since 2006 - Best way to approach this

[manek1n]

I'm trying to get my affairs in order after failing to do a SA since the 2006 one, submitted in 2007.

Since then after various personal problems, i didnt do one - For 2 years i worked for myself, and since then have been an employee of various companies, paying PAYE and also getting dividend payments (usually under the 20k amount). I've moved around alot, so havent been 'caught' since i doubt HMRC know where i live right now. Having said that, as the director of a company now, i pay VAT, PAYE and am registered on various systems at my current address where i have lived for 4+ years so i'm surprised i havent been approached.

Is there a best way to get this situation sorted out properly? On one hand i want to clean my record, pay any bills and get on with my life - but there is a niggling doubt in my mind that this will only cause a load of hassle from HMRC who may or may not start chasing me (or sending people around)

Would re-registering for self assessment allow me to back fill all my returns in for those five years, and arrange payment? Or should i go and speak to an accountant about this?

[pawncob]

See an accountant experienced in back duty cases and investigations.
The S/E period is the only real problem as (presumably) employments were subject to PAYE. HMRC must know of your existence as they issued a code number for you.(?)

You might get fined for failing to submit a return, but that depends on whether a return was ever issued.

[manek1n]

Would i be able to do something like the new initiative for completing back dated returns :

http://www.hmrc.gov.uk/campaigns/tri.htm ??

I know for only 2 years out of the past six, i have paid PAYE though whatever company i was employed with (And had various tax code changes), but it's obviously the dividend payments that i need to declare, which were mostly under the threshold for higher rate tax.

[pawncob]

the link didn't work, but I assume it goes to the HMRC initiative to get people who've failed to submit tax returns WHEN REQUESTED.

If you weren't a HR taxpayer, there's no additional liability for dividends received.
See an accouuntant.

[nikkisizer]

See an accountant experienced in back duty cases and investigations.

Hello manek1n,

I can help you if you need further assistance so please do not hesitate to contact me if required.

[Bridge96]

Hello Manek1n,

HMRC's new tax amnesty - 'Tax Return Initiative' - is open for tax payers who have failed to fulfil a request from HMRC to submit a self-assessment tax return. So unless they have contacted you previously then I doubt that this option will be available to yourself.

More information on the Tax Return Initiative: http://www.kinsellatax.co.uk/index.php? ... Initiative

However, if you were to come forward and make a voluntary disclosure to HMRC then you will receive reduced tax penalties and also avoid potential criminal prosecution. I would advise that it is best to come forward to HMRC rather than waiting for them to find you.

For more advice on your current situation and the options that you have going forward I would speak with a tax investigation expert who can help. You can call 0800 999 9980 24 hours a day 7 days a week.

I hope that this helps.

[manek1n]

I've had to submit tax returns before, and the Y/E 06 return was the last one i did, so i'm guessing that my situation applies under their rules?

[Bridge96]

Are you in the forty or fifty percent tax rate bracket?

Have you received a letter requesting you to submit a self-assessment tax return since you last submitted on in the Y/E 2006?

[manek1n]

40% tax bracket.

Yes, i had previously submitted tax returns most years up until the period in question where various personal issues resulted in my situation with multiple changes of address and the lapsed submission of returns.

[nikkisizer]

I've had to submit tax returns before, and the Y/E 06 return was the last one i did, so i'm guessing that my situation applies under their rules?

Hello Mark,

If you were in the higher rate tax bracket for 2009/2010 and earlier then yes the Tax Return Initiative will apply if self assessment tax returns were previously issued to you.

You mentioned in your original post that previously you have worked for yourself and have also been a Director of a Company so you will be required to submit tax returns for these years regardless of whether HMRC issued them to you or not.

Also, under the old tax rules applicable 2009/2010 and earlier you will not face any penalties if there is no tax liability to pay and I can assure you that you do not need to worry about criminal prosecution with your circumstances.

I will respond to your PM shortly.