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Where Taxpayers and Advisers Meet

HMRC insist on sending a tax return for 21/22, after we've already made a declaration and paid a penalty

kp278
Posts:7
Joined:Thu Feb 22, 2024 4:07 pm
Re: HMRC insist on sending a tax return for 21/22, after we've already made a declaration and paid a penalty

Postby kp278 » Fri Feb 23, 2024 3:28 pm

Hi, thanks for all the valuable input.

It started with a letter from HMRC "Income you have earned from Online Marketplace sales". We did a voluntary disclosure and received confirmation of the settlement (their words).

Link to the "settlement" https://ibb.co/j62f1z9

Yesterday I completed the online form 'if you no longer need to send a tax return' and included my case ref for the settlement.

bd6759
Posts:4298
Joined:Sat Feb 01, 2014 3:26 pm

Re: HMRC insist on sending a tax return for 21/22, after we've already made a declaration and paid a penalty

Postby bd6759 » Fri Feb 23, 2024 5:50 pm

K did not mention a CONTRACT settlement?

I am not sure that TMA 70 s 8 includes an "I've already paid you all the tax I owe" provision as a defence against a notice to file.

I mean, it would be absolutely awesome if it did.

Regards,

Lambs
That’s the only sort of tax settlement I know.

A binding contract seems like a reasonable excuse defence against any penalties. But given the circumstances, asking HMRC to withdraw the notice is a reasonable request.

kp278
Posts:7
Joined:Thu Feb 22, 2024 4:07 pm

Re: HMRC insist on sending a tax return for 21/22, after we've already made a declaration and paid a penalty

Postby kp278 » Fri Mar 08, 2024 5:19 pm

Hi all, I submitted request to not file but the reply was that I still need to file regardless. We spoke to the 'disclosure' team who were very helpful, but they informed us that if we file, we will likely need to pay the taxes again and then contact them for a refund...! I've made a complaint to hmrc in the meantime, but still preparing to file a tax return at the last minute.

bd6759
Posts:4298
Joined:Sat Feb 01, 2014 3:26 pm

Re: HMRC insist on sending a tax return for 21/22, after we've already made a declaration and paid a penalty

Postby bd6759 » Mon Mar 11, 2024 11:14 pm

Personally, I would send in the return with everything but the eBay earnings. Put those earnings in one of the free text boxes so that the details do not form part of the self assessment calculation. Explain that the tax due on these earning is contained in a contract settlement and cannot, in law, be assessed again.

But be sure that you have disclosed all of your earnings in the settlement. If there are further profits that you omitted from the earlier disclosure … good luck. You’ll need paid for advice.

kp278
Posts:7
Joined:Thu Feb 22, 2024 4:07 pm

Re: HMRC insist on sending a tax return for 21/22, after we've already made a declaration and paid a penalty

Postby kp278 » Fri Mar 15, 2024 11:48 am

I've done just that, thanks for the suggestion. Fingers crossed it flies. I hope for the SA team its merely a box ticking exercise.

kp278
Posts:7
Joined:Thu Feb 22, 2024 4:07 pm

Re: HMRC insist on sending a tax return for 21/22, after we've already made a declaration and paid a penalty

Postby kp278 » Thu Mar 21, 2024 4:52 pm

Hi, I received a response to the complaint today, HMRC apologised for issuing us a tax return for a period that had already been settled. Small win :)

They have said I should contact them - I assume that is only around my concerns that I would have to pay tax twice. In light of the way I completed the tax return - with all ebay returns in a box at the end - I'm sure I do not need to contact them and it's all done and dusted now.

Extract from complaint response below:

I have reviewed your self assessment record and I can see that you have submitted a Self Assessment tax return for the tax year 21/22, I have contacted a colleague in Individual and Small Business Compliance who have suggested that in light of the tax return being submitted you will need to contact them to have your disclosure settlement revised.

I apologise that you were issued tax returns for the years in which you had entered the agreed upon settlement. Unfortunately the way the Self Assessment system is designed is that returns are automatically issued based on Self Assessment criteria.

Please see below for the address you will need to write in too to discuss your disclosure settlement. You will need to title your letter for the attention of Individual and Small Business Compliance team.

You can send in your written correspondence to:

Pay As You Earn and Self Assessment
HM Revenue and Customs
BX9 1AS
United Kingdom

bd6759
Posts:4298
Joined:Sat Feb 01, 2014 3:26 pm

Re: HMRC insist on sending a tax return for 21/22, after we've already made a declaration and paid a penalty

Postby bd6759 » Thu Mar 21, 2024 9:49 pm

That’s hogwash. Ignore it.


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