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..