WHAT TO DO IF YOU GET AN HMRC FINE
If you are
one of the 500,000 people who have been sent a warning letter by HMRC about a
£1200 fine – DO NOT IGNORE IT. These letters are being sent out to people who
were asked to fill in a self-assessment tax return for 2010/11. The form or a
notice to complete it would have been sent in April 2011. The form should have
been submitted on paper by 31 October 2011 or electronically by 2 February this
year.
If you
missed the deadline you would have been sent an automatic £100 penalty. If the
form was not submitted by the end of April a daily £10 penalty began on 1 May.
That was charged for up to 90 days – a total of £900. And if the form was still
not sent by 31 July a final penalty of at least £300 is levied – more if your
outstanding tax is over £10,000.
If you have
ignored those notices then a total of £1300 is due and the final warnings are
arriving on doormats as you read this. The money is due even if you owe not tax
at all.
You may be
able to avoid all these penalties if you act swiftly. It is quite possible that
you no longer have to be in self-assessment at all. And if so then you can ask
HM Revenue & Customs to take you out of it and quash all penalties. But you must
ask – it won’t happen otherwise.
If you can
answer ‘no’ to ALL these points then you can probably come out of
self-assessment
One very
common reason for being in self-assessment when you shouldn’t be is if you were
self-employed but now have a job with an employer. But if HMRC sends you a form
you must either fill it in or register to be taken out of self-assessment. More
than 250,000 have already come out of self-assessment.
Call the
self-assessment helpline 0845 900 044 or try the landline 0161 931 9070.
Alternatively look up your nearest HMRC Enquiry Centre at
www.hmrc.gov.uk/enq
where you can call the helpline free and without a long wait. No appointment is
needed just to use the phone.
If you get
the letter DO NOT IGNORE IT. If the fine is not paid for 30 days then it is
passed to the Revenue’s collections department. And they can be very nasty
indeed – using the court or bailiffs to recover the money.
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