TAX RETURN FROM 17 YEARS AGO

[WORRYSOME]

Hello

When I was twenty years old (1995) I applied to HMRC to become self employed, I did some work for a several months for a Partner of Rothschild Assurance ( he said that he could not employee me on a PAYE basis as he was self employed). I left the UK to work abroad in 1996. I did not fill in any tax returns nor did I inform them. I feel very foolish now as I really did not know what I was taking on at the time (I had no formal qualifications and no guidance, I wished I had seeked advice before leaving the country. I now wish to return to work in the UK and am wondering what the situation is with myself and HMRC. I am afraid to contact them about it but really do want to return to work. Does anybody have advice for me and what action should I take and what am I likely to come up against. Could I really approach them about my situation?

Thank you for your time

Joanna

[mullet]

If HMRC had an interest in you regarding this year then you would have heard by now assuming that any post sent by HMRC would have been forwarded or otherwise brought to your attention. When you return to the UK just fill out the relevant forms (P86 is the starting point) http://www.britishcouncil.org/new/PageF ... taxp86.pdf and see what happens. If HMRC want some history they will ask about the past 6 years, not the past 18 or more. You may have a niggling doubt, but I think you can sleep easy.

BTW, there was nothing to stop the agent from employing you - of course the self employed can employ people. I suspect he just wanted the easy option of no paperwork, no hassle, no employment rights.

[WORRYSOME]

Hello and thank you for your reply.

I was registered at my mothers home at the time. She soon after moved to another property as the house she was unable to keep up the payments. She does remember some correspondence for me from HMRC but her memory is not reliable. I will follow the link that you have provided although I am still very nervous about doing so, as I will be unable to survive financially if they demand the money.

Thank you again

Joanna

[mullet]

From a private message (posted here for benefit of others)

Hello

I followed the link that you kindly gave to me and have read through the form. It seem pretty straight forward but I cannot find the DOM1 form that they request I complete. Do you have any suggestions.

Thank you again for you time, I really appreciate your guidance.

Joanna

I didn't realise, but DOM1 has been withdrawn and the P86 will go soon too. Form DOM 1 is being withdrawn completely. It will be replaced by the new comprehensive domicile guidance mentioned above that will allow the vast majority of people to self assess their own domicile status. Form P86 will also be withdrawn soon and replaced by a new form. Until such time as the new form is issued individuals do not need to fill in boxes 12 to 17 on the P86 when submitting it. If they choose to fill in those boxes HMRC will ignore the content when processing the form.

Any DOM 1 forms received by HMRC by close of business 25 March 2009 will still be processed but any received after that date will be returned unexamined. Source: http://www.hmrc.gov.uk/briefs/income-tax/brief1709.htm

Domicile is complicated, but HMRC will not argue with UK domicile status for a British person. But did you consider yourself domiciled outside the UK in the past 18 years?

[WORRYSOME]

Hello again,

I returned to the UK for a 2 year period from 2002 - 2004 in was in receipt of benefits throughout this period. I was not aware of what domicile meant until I read about it on the form - does this mean that I am no longer a British Citizen? This is worrying me even more.

Oh dear...things seem to getting worse now.

[johnowirr]

The advice given by Mullet is sound in my opinion. It is highly unlikely that HMRC would have concerns about something that happened 18 years ago or even 9 years ago when you returned to UK. The normal time limit now for Self Assessment is 4 years and earlier years are only of concern if it can be shown, without any doubt, that there was liability and this was deliberately avoided. Your comments do indicate to me, as with Mullet, that the Partner perhaps employed you but sought to avoid the operation of PAYE by informing you that you were self employed. If the facts at the time showed it was an employment the Partner should have operated PAYE but again I think this is well out of time.

With regard to Domicile on the assumption you were born in UK as were your parents then it is highly likely you have a UK Domicile of origin. You spent some 16 years in France and there is possibly a case for French Domicile of choice in that period but as you have now returned to UK, presumably to remain in UK, your Domicile will return to UK unless you indicate you are here for a temporary purpose only. I do not know what your employment or self employment status was whilst out of UK but on the assumption you were Not Resident in the UK for tax purposes as a UK Domiciled individual in the period there would be no UK tax liability unless you performed duties in the UK in that period.

If the issue of tax liability 18 years ago is causing you great concern you can make a voluntary payment in respect of the liability but my advice is to simply proceed on the basis that this is well out of time and there was no deliberate attempt to avoid taxation. HMRC will have no concerns as stated at the start of my comments.

[nikkisizer]

I didn't realise, but DOM1 has been withdrawn and the P86 will go soon too. Form P86 will also be withdrawn soon and replaced by a new form. Until such time as the new form is issued individuals do not need to fill in boxes 12 to 17 on the P86 when submitting it. If they choose to fill in those boxes HMRC will ignore the content when processing the form.

Any DOM 1 forms received by HMRC by close of business 25 March 2009 will still be processed but any received after that date will be returned unexamined. Source: http://www.hmrc.gov.uk/briefs/income-tax/brief1709.htm

Form P86 has been withdrawn since 01 June 2010. It is form P46 that now needs to be completed after returning to the UK to be employed under PAYE.

[wamstax]

As already said by others sleep easy at night. Unless your tax evasion was deliberate HMRC are unlikely to be able to go back beyond 6 years. There is also the added complication that irrespective as to what your "engager" told you, you might even in truth have been an employee of the engager and any failure then would be that of your then employer.

In any case even if it was deliberate or fraudulent, HMRC can never go back more than 20 years for tax evasion.