Yes, I am from EEA country. I would add that:
- during last 5 years I was working in that EEA country
- I never let HMRC know about starting my own business, but before end of 2009 I had job in UK (taxes normally paid by employer)
- last time I was in UK was end of 2009
- income from that UK "business" is being sent to my non-UK bank account
- I am not sure how to treat type of the income - I would say personal (normally I should be registered as Self Employed, but I wasn't)
- yes - I am pretty sure I never went above "Personal Allowance" but only if we talk about UK Income. When combined with my EEA's country income, then total amount could exceed "Personal Allowance"
- not sure if that matter - during last 5 years I paid (my employer paid) standard taxes for me in my EEA country
- with regards to VAT - If I was living in UK and run that business - I assume I had to pay VAT (which I never did; I was receiving VAT invoices from my ad partner). On the other hand - I was not living in UK (and living in EEA) so then VAT for such services is 0.. But I think HMRC didn't know I am not living in UK, and could possibly asked me to pay that VAT..
So what could be the consequences? Maybe I should rather worry about Inland Revenue from my current country? Would it be possible that in such situation HMRC was sending at my UK's address request for paying income tax or rather VAT taxes? And later - even asking me to go to the court etc?