Nephew Just Become Self Employed - HMRS Sent Letter Requesting £100 Penalty

[Daniel182]

Hello

 

My nephew became self employed plasterer December 2011, up until now he as not done any plastering work.

 

Apparently when he filed to become self employed, he was told he did not have to send in anything because it was nearly the end of the tax year and had to wait til 2013.

 

HMRS sent him two letters requesting £100 Penalty + a £1600 fine (Links Below)

 

http://www.iimmgg.com/image/5803c2c476bf414b2c16128091dc698f

 

http://www.iimmgg.com/image/54671e5099b40cccf14cad4178e9a0a2

 

I would be very grateful for any advice i could past on.

 

Thanks for your time and help

 

Daniel

[freakyleaky]

He really needs to contact his tax office and tell them what exactly are his circumstances.

Tell him to mention what he was told when he registered.

They can't fine him for no TR for 10-11 if he wasn't self employed during that period. It looks like a mistake on their behalf to me.

[jadeybags]

He registered self employed in dec 2011, then what he was told is right. Can't find the link at the moment explaining the routine. I do remember seeing something mentioned about maybe having to give them details around summer time if you become self employed at the end of the year. But yes, it looks like an error on their part for this. He will still need to file his tax returns in future even if he doesn't earn anything though.

[freakyleaky]

HMCR give you until october to fill out the online form so a tax return from 2011 - 2012 wont be due until oct 2012.

Have a read of the HMRC website http://www.hmrc.gov.uk/sa/index.htm

[jadeybags]

HMCR give you until october to fill out the online form so a tax return from 2011 - 2012 wont be due until oct 2012.

Have a read of the HMRC website http://www.hmrc.gov.uk/sa/index.htm

 

Online form deadline is Jan 2013, paper form is october 2012.

[freakyleaky]

Isn't it October if calculating your own tax and Jan if they doing it for you?

[freakyleaky]

Sorry you are dead right.

I've only been a sole trader for 12 years so still getting used to it.

 

31 January: online returns

Your online tax return must reach HMRC by midnight on 31 January.

You only have longer than this if you received the letter, telling you to send a tax return, after 31 October. In this case you'll have three months from the date you received that letter.

There's an earlier deadline of 30 December if you want HMRC to collect any tax you owe through your tax code. You now can ask for this if you owe less than £3,000. Please show this clearly on your tax return. HMRC will try to collect the tax due through your code, but they can't always do so.

[jadeybags]

Isn't it October if calculating your own tax and Jan if they doing it for you?

 

 

Yeh other way round lol 12 years??? Hats off to you. Am new to it, find the thought a bit daunting. But determined to get it right. Just hope I have got my spread sheets right. Reading Daniels thread here has me coming out in a cold sweat! HMRC's errors are the last thing you need when first starting out.

[freakyleaky]

Every year I panic around October and only realise once I have submitted that Its January. It comes from years of sending the paper return in. They were a nightmare!!!

[Gbarbm]

As your nephew became self employed in Dec 2011 then potentially he could have received income from Dec 2011 until the end off the tax year on 5 April 2012

I couldn't see the images you posted (writing too small and my eyesight is too poor) so are HMRC applying a penalty for failure to submit a return and if so, which tax year are they referring to?

[jadeybags]

As your nephew became self employed in Dec 2011 then potentially he could have received income from Dec 2011 until the end off the tax year on 5 April 2012

I couldn't see the images you posted (writing too small and my eyesight is too poor) so are HMRC applying a penalty for failure to submit a return and if so, which tax year are they referring to?

 

But you don't file a tax return after first registering in december until the following tax year. The first image was a letter sent to the OP's nephew stating they were too late filing their tax return for 2010-2011. Which was basically before they registered as self employed.

' you now have 100 pound penalty because you did not file your 2010-2011 tax return on time'

[Gbarbm]

Yes that's what i was trying to establish if it was a late filing penalty or a failure to notify penalty.

I think that someone on the SA(self assessment) team has input the wrong start date!

[Daniel182]

Thanks everyone for your help, much appreciated.

[Roken]

It's worthwhile considering whether or not there are two unrelated issues here. Although your nephew became self-employed in Dec 2011, this does not preclude the possibility that a Return was issued for the year ended 5 April 2011. There are many reasons that someone may be issued a self-assessment Return, and self-employment is just one of them. He needs to establish quickly whether or not a 2011 Return was issued, and if so, when. The date of issue is important. Even if the Return is issued in error following a clerical mistake by HMRC, it is generally the case that once issued it must be returned. However, if the Return was issued out of cycle (i.e. not on 6 April) then it may be the case that the normal deadlines don't apply.

 

He should act quickly. The new penalty regime means that the grounds for appeal have been significantly eroded since April 2011.