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Where Taxpayers and Advisers Meet

Self Assessment Overdue

OvCo
Posts: 6
Joined: Mon Jun 03, 2013 11:52 am

Self Assessment Overdue

Postby OvCo » Thu Aug 22, 2013 5:56 pm

Hi All,

I was unsure about my residence status in 2011/2012 until today. It now turns out that, even though I had no request to this effect from HMRC, I should have filled a SA for the year in question. What do I do? What penalties should I expect? Does this mean that they will look at my SA in great detail?

Thank you

LozaACCS
Posts: 1504
Joined: Wed Aug 06, 2008 3:55 pm

Re: Self Assessment Overdue

Postby LozaACCS » Thu Aug 29, 2013 9:32 pm

If you had taxable income for 2011/12 you were obligated to notify HMRC by 5th October 2012.
By not doing so you are liable as follows,

1 The tax due on the income not declared.
2. Interest from the due date (31/01/13) to the date the tax is paid.
3. A penalty based on the Potential Lost Revenue (PLR)
The PLR is the amount of tax, the penalty is a percentage based on the nature of the error ie whether it is

Careless
Deliberate but not concealed
Deliberate and concealed

Your non disclosure appears to be careless, the maximum penalty would be 30% , the minimum would be 10%
Because the error will be disclosed within 12 months of the tax being due, the case A minimum may apply, that would reduce the penalty to zero.
If at the end of the day, no tax is due then the PLR is nil and there would be no penalty.
I would contact a local accountant to handle the disclosure on your behalf.

OvCo
Posts: 6
Joined: Mon Jun 03, 2013 11:52 am

Re: Self Assessment Overdue

Postby OvCo » Fri Aug 30, 2013 9:36 am

Thanks Loza, appreciated.

robbob
Posts: 2781
Joined: Wed Aug 06, 2008 4:01 pm

Re: Self Assessment Overdue

Postby robbob » Fri Aug 30, 2013 10:56 am

HMRC are currently promoting a campaign for those with overdue returns - it is advisable to file any late returns via this official "tax return catch up" process.
Details available here
http://www.hmrc.gov.uk/campaigns/mtrc.htm

Note this campaign runs to 15th October (submission date) and it is likely if there are any penalties to be charged then i would expect them to be less if you use this scheme and meet their deadline as compared to filing after the 15/10.

I am not sure they should say
By taking part you will receive the best terms available.
as the best terms available would be for them not to levy any penalties :)

LozaACCS
Posts: 1504
Joined: Wed Aug 06, 2008 3:55 pm

Re: Self Assessment Overdue

Postby LozaACCS » Fri Aug 30, 2013 8:17 pm

Robbob

The campaign appears to be targeted to persons with overdue returns.

My understanding of the Op;s post is that he does not have any overdue returns since none have been issued, this leaves him exposed to the penalties prescribed in Sch 41 FA 2008, indeed if he tried to submit a return he would not be able to since he would have no UTR.
The OP does state that no request for a return was issued.

robbob
Posts: 2781
Joined: Wed Aug 06, 2008 4:01 pm

Re: Self Assessment Overdue

Postby robbob » Sat Aug 31, 2013 9:38 am

Oops - silly me

Yes as Loza rightly says the tax return catch up process doesn't cover circumstances where the return hasn't been issued - apologies for any confusion.

Chadam
Posts: 1
Joined: Sun Oct 06, 2013 12:21 pm

Re: Self Assessment Overdue

Postby Chadam » Sun Oct 06, 2013 12:47 pm

Hello,

I'm new to these forums so please bare with me... i have HMRC chasing me for £1300 for late penalty fees on self assessment. Here is the problem.. i registered as self employed on 20th March 2012 and tried starting an online eBay business, which i couldn't really manage as i already had a full time job. So i called HMRC and cancelled my self assessment around 1st May 2012. They said everything is OK as i was trading for under 2 months. On the 25th Aug 2013 (1 year & 4 months late..) i received a phone call from HMRC debt collection, saying that i owe £1300 in late fees. After talking to the relevant people it turns out that i am still self employed and i need to complete a tax return for 11/12 and 12/13. I was completely shocked as i had no letters, emails, phone calls, text.... no idea! They cancelled the tax year 12/13 for me, but i had to complete a self assessment for 11/12. After i visited the tax office in Harlow, it turns out that i owed £78.20 for that (1.5 months of trading) and i had to appeal against the penalty fines, which i did there and then. I received the bill of £78.20 and paid it straight away, then a few days later i received 3 letters both saying that my appeal is not acceptable and i can pay the fine or appeal further to the appeals & review unit, which i did again and now i am waiting on a reply..

In a nutshell... I had no idea, i paid my taxes, why didn't they inform me earlier and why would i avoid paying like £78 and risk paying £1300.

I am new to all of this, i have no idea and i need help or some advise..

Many Thanks,

Adam


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