Discovered a large penalty after 6 years.
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.