| Tax penalty question (Self-employed work) 16:21 - Jun 27 with 1585 views | ThisIsMyUsername |
I recently received a letter from HMRC stating that I owe £100 for having not filed my tax return for the tax year ending 2023.
I only did, and invoiced for, my very first bit of self-employed work in March 2023, and this was worth less than £1,000.
So I believed (perhaps incorrectly) that I did not need to file a tax return for that tax year as I had earned under £1,000.
Can anyone confirm if I understood this correctly or not?
I have just submitted an appeal online. However, at the end of the appeal it said 'submit your tax return or we may not be able to process your appeal'.
I understand that they may refund if if they agree with your appeal.
Advice on my understanding and next steps would be much appreciated.
Thanks. [Post edited 27 Jun 2024 16:22]
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| Tax penalty question (Self-employed work) on 16:25 - Jun 27 with 1518 views | bluelagos |
Did they ask you to do a return? Have you done one in previous years? |  |
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| Tax penalty question (Self-employed work) on 16:29 - Jun 27 with 1490 views | WeWereZombies |
HMRC try it on all the time, they have targets to meet. As you have correctly found out, a tax return is not necessary in your current circumstances ( https://www.gov.uk/self-assessment-tax-returns/who-must-send-a-tax-return ) and you might find that (if you could get through on their 'helpline' to ask the question) they are not keen to have the extra return to deal with anyway. However I think you need to go through the motions and submit a return so that they can tell you they do not need one and then you can flag up 'well, why have I been handed a fine then ?' But put it a bit more politely than that. |  |
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| Tax penalty question (Self-employed work) on 16:30 - Jun 27 with 1483 views | ThisIsMyUsername |
| Tax penalty question (Self-employed work) on 16:25 - Jun 27 by bluelagos |
Did they ask you to do a return? Have you done one in previous years? |
I registered as self-employed on 26th Feb this year (although I am no-longer self-employed anyway but I haven't told them that yet). I worked on a self-employed basis between March 2023 and November 2023.
On the same day (26th Feb) I went to submit the first self-return for the work in March 2023 and then didn't proceed when I read the bit about it being less than £1,000 so it wasn't necessary.
No, as far as I can recall (and as far as my emails show) they did not request it.
No, I've never needed to do one before. | |
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| Tax penalty question (Self-employed work) on 16:32 - Jun 27 with 1468 views | ThisIsMyUsername |
| Tax penalty question (Self-employed work) on 16:29 - Jun 27 by WeWereZombies |
HMRC try it on all the time, they have targets to meet. As you have correctly found out, a tax return is not necessary in your current circumstances ( https://www.gov.uk/self-assessment-tax-returns/who-must-send-a-tax-return ) and you might find that (if you could get through on their 'helpline' to ask the question) they are not keen to have the extra return to deal with anyway. However I think you need to go through the motions and submit a return so that they can tell you they do not need one and then you can flag up 'well, why have I been handed a fine then ?' But put it a bit more politely than that. |
So I do need to go through the process of submitting it after all, just for them to (hopefully) tell me 'You're right. Appeal accepted'.
How annoying. | |
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| Tax penalty question (Self-employed work) on 16:35 - Jun 27 with 1452 views | bluelagos |
| Tax penalty question (Self-employed work) on 16:30 - Jun 27 by ThisIsMyUsername |
I registered as self-employed on 26th Feb this year (although I am no-longer self-employed anyway but I haven't told them that yet). I worked on a self-employed basis between March 2023 and November 2023.
On the same day (26th Feb) I went to submit the first self-return for the work in March 2023 and then didn't proceed when I read the bit about it being less than £1,000 so it wasn't necessary.
No, as far as I can recall (and as far as my emails show) they did not request it.
No, I've never needed to do one before. |
Not a tax specialist - I do know you can get fined for late submission even if no tax is owed - happened to me a few years back.
Sure you're right about the £1000 allowance
Unless someone on here is specialist tax accountant - I'd phone the HMRC helpline. Getting through is a pain - but have found them helpful in the past with simple queries. | |
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| Tax penalty question (Self-employed work) on 16:36 - Jun 27 with 1445 views | textbackup |
Just make sure you do £100 worth of work, cash, don’t declare it, then you’re evens. |  |
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| Tax penalty question (Self-employed work) on 16:43 - Jun 27 with 1421 views | ThisIsMyUsername |
| Tax penalty question (Self-employed work) on 16:35 - Jun 27 by bluelagos |
Not a tax specialist - I do know you can get fined for late submission even if no tax is owed - happened to me a few years back.
Sure you're right about the £1000 allowance
Unless someone on here is specialist tax accountant - I'd phone the HMRC helpline. Getting through is a pain - but have found them helpful in the past with simple queries. |
But they tell you that you don't need to file if you don't owe tax.
So how can they then fine you for not doing so?
I did try calling the other day and had to hang up after 50 minutes on hold as I needed to go out. | |
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| Tax penalty question (Self-employed work) on 16:54 - Jun 27 with 1357 views | GeoffSentence |
| Tax penalty question (Self-employed work) on 16:36 - Jun 27 by textbackup |
Just make sure you do £100 worth of work, cash, don’t declare it, then you’re evens. |
No, I don't think that's right.
You'd have to earn eenough to have a £100 tax liablitiy that you don't declare.
Then you're evens. |  |
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| Tax penalty question (Self-employed work) on 20:50 - Jun 27 with 1141 views | FelixBlue4 |
Ok question for you what did you do from April 2022 till march 2023 ?
If your answer is not employed then you won’t have used your annual tax allowance but if you worked then you may have used all your allowance for that year.
That is why you need to register and tell them regardless of if tax is due. It is their job to tell you how much is due they don’t like you deciding for yourself. |  | | |
| Tax penalty question (Self-employed work) on 22:48 - Jun 27 with 1043 views | redrickstuhaart |
| Tax penalty question (Self-employed work) on 20:50 - Jun 27 by FelixBlue4 |
Ok question for you what did you do from April 2022 till march 2023 ?
If your answer is not employed then you won’t have used your annual tax allowance but if you worked then you may have used all your allowance for that year.
That is why you need to register and tell them regardless of if tax is due. It is their job to tell you how much is due they don’t like you deciding for yourself. |
Do bear in mind that work in progress is taxable even if not invoiced yet... | | | |
| Tax penalty question (Self-employed work) on 23:01 - Jun 27 with 1006 views | tomo |
I had the same situation. I rang them up and after answering a few questions they cancelled the fine and confirmed I did not need to submit a return. |  | | |
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