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Where Taxpayers and Advisers Meet

Discovered a large penalty after 6 years.

Joined:Thu Jan 14, 2021 9:25 pm
Discovered a large penalty after 6 years.

Postby baranqu » Thu Jan 14, 2021 9:56 pm

Hello there.
Around 6 years ago while at University, HMRC have sent me a short letter claiming that i have 200£ unpaid tax, even though at this time, i was working at a bar earning 5£ an hour, i have made the payment without putting too much thought into it.
In order to make the payment, i had to log into the self assessment account and make a Direct transfer from my bank.
Every since then the letters have stopped coming, so i assumed everything was sorted. For the next years(until today) i would get occasional letter about changes in Personal Allowance etc.
Couple days ago i have decided to log into the Account online as i wanted to prepare to declare my extra earnings from last year, to my HUGE surprise, i was greeted with a screen saying that i have 2000£ of unpaid tax!
After brief investigation i found out that all this money was generated through penalties that have been stacking up since 2014.
I have quickly called HMRC advisor and informed him about the situation, he basically said that penalties are due to a late Self-Assessment, the problem is that, i was never asked to fill one !!!
The man then advised me to request my PAYE information from the archives, fill the 2014 Self-Assessment and then Appeal against the Penalties.
What is the most frustrating about this whole situation is that i was never informed about any penalties whatsoever, if i didn't found out myself, it would probably grow forever...

I would really appreciate any advise regarding the case.
As of now, i have requested my PAYE records from 2014, however, there is around a month wait.

Thanks a lot.

Joined:Sat Feb 01, 2014 3:26 pm

Re: Discovered a large penalty after 6 years.

Postby bd6759 » Sat Jan 16, 2021 6:20 pm

Don’t complete a return.

Tell HMRC that your only become was PAYE that year and you have no self assessment criteria. Ask them to withdraw the return. That will cancel the penalties.

Return to “PAYE and Payroll Taxes, National Insurance, NICs”