How much do tax credits office and tax office communicate?

[Mistake maker]

Can someone tell me, if I had previously had a tax credits claim as a self employed person, would that automatically have been conveyed to the tax office and would the tax office have expected a self assesment tax return from me that year?

[rainbo]

No it's not automatic, you have to register as self-employed with the tax office so they can send you a self assessment form each year, so they can work out how much to tax you. Different 'departments'. Having said that, if they decided to do a check they would spot that you were claiming as SE yet not filing tax returns, which would lead you into a heap of mess.

[Mistake maker]

Sure, but they dont check everyone automatically you dont think? As I am out of the country now and no longer recieve tax credits, its a finalised case. I just dont want to get hit in two years with a fine as they have been waiting for my self assesment from that year!! I no longer have income or recieve tax credits in uk, so would rather not do the tax return for the small amount if i dont need to, as once they have you in their self assesment system, its hard to get out!! I thought paye was sent to tax credits automatically? But self assesments not?

[Gbarbm]

Tax credits will accept what you tell them on the tax credits forms

Tax credits will carry out random compliance checks on claims and if there are any anomalies, they will report those to the relevant department (s) for them to carry out their own checks, so it's a chance you take I suppose

[rainbo]

Sure, but they dont check everyone automatically you dont think? As I am out of the country now and no longer recieve tax credits, its a finalised case. I just dont want to get hit in two years with a fine as they have been waiting for my self assesment from that year!! I no longer have income or recieve tax credits in uk, so would rather not do the tax return for the small amount if i dont need to, as once they have you in their self assesment system, its hard to get out!! I thought paye was sent to tax credits automatically? But self assesments not?

 

No, they don't check everyone automatically. I wish they did, then I wouldn't have to file tax returns AND tax credit renewals, would be great if it was all done jointly and automatically

 

PAYE isn't sent automatically to tax credits either - if it was, there'd be a lot less overpayments happening.

[Mistake maker]

I could of sworn a few years ago, the tax credits wrote to me saying they had my earning information from my employer or my tax records, im sure they did. Maybe im wrong

[rainbo]

I could of sworn a few years ago, the tax credits wrote to me saying they had my earning information from my employer or my tax records, im sure they did. Maybe im wrong

 

Maybe they'd done a check