Think I have messed up my tax return, what happens now??

[llamallama]

I will call HMRC tomorrow but am panicking now!

Basically I had to complete a self assessment as in 2011 I registered as self employed. I was going to become a Phoenix home trader (like Avon) but it never happened. I bought the sign up pack and that was it, although I completed all the forms, I changed my mind and de-registered as self employed

All the time I have had a full time job

Now HMRC say I have an unpaid tax bill of over £6k! But I'm PAYE at work and have my tax deducted every month with my salary.

HMRC are charging me £311 in fines as my tax return was late (I didn't think I had to do one) as they state it's 5% of the unpaid bill of £6k. They arnt actually billing me for the £6k. As far as I'm concerned this is paid. I except I was late and can pay the fine for that. It's the note about £6k unpaid tax that is freaking me out!

I will call them tomorrow but anyone have any advice?

I'm assuming they can tell from my records that I have been paying income tax through my main job??

just to say don't panic! You won't get the fine back but the rest can be discussed.

It is always possible to correct tax returns and in my experience if there is a genuine error, HMRC will accept this if you write to them with the details.

call them for initial advice and then sit down and do your sums.

They clearly still have you down as self employed and as being required to submit a Self Assessment return.

Because you haven't submitted a return to tell them you haven't got any profit from self employment they have guessed that you have made £XX,XXX profit and therefore owe an additional £6,000 in tax which would have been due by 31 January 2013. The £311 is a fine (including interest) for not paying that sum on time. Once you have established that you didn't make any profit so you don't owe them £6,000, that fine will be cancelled.

However if they have asked you to submit a tax return for 2011/12 and you haven't, you will be due an automatic fine of £100 - I'm surprised they haven't sent you this too. You need to clear this up by the end of April (which probably means completing a tax return as once the request for this has been issued it is almost impossible to reverse it, it's not something that can be done over the phone) otherwise you will automatically be fined £10 A DAY.

As advice to others - there is absolutely no need to register as self employed before you start or even in the first few months of trading, so make sure your business is established first; if you give it up and your profits are less than £2,500 HMRC may agree to deal with it all through PAYE.

Oh no I have done the tax return.

I got a letter saying I missed deadline and thus would have £100 fine, then I completed the self assessment online last week, then I got this letter!

so let me get this straight in my head

You were registered as Self employed, then deregistered but HMRC sent you a notice to complete a tax return.

You then didn't complete the tax return.

You got a letter saying you had a £100 fine and then completed the return online.

Then you got this letter saying you owed £xx amount of tax

Is that right?

To me, one of two things has happened

1. the return was filled in incorrectly (sorry - don't mean to be rude but it is a possibility)

or

1. and this is more likely, HMRC have issued a determination as Mr Anchovy has stated showing a amount owed based on what they think you should have earned and this letter has been issued before you submitted online and the online submission would have over ridden this letter.

the Fine of £331 is likely to include late payment interest based on the amount of tax HMRC has determined you owe. This will likely change by the online submission but you will not get the £100 back. You were due to make a return but didnt so this stands.

Can you log onto your online account and see what it says? The online submission should have been processed by now and the amended amounts shown

If not, you will have to phone HMRC to sort it out.

OP

Did you complete an employment page and enter the amount og gross Pay and tax from your P60?
Loads of people put the pay figurer in but not the tax deducted (cos they think we already know it)