Not been self employed since 05/06 but being fined through PAYE?

Not been self employed since 05/06 but being...

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Hi,

I was working as a car cleaner in 05/06 self employed at the end of 06 I sent the hmrc a letter to inform them I was no longer self employed but now employed, since then I have being paying my tax via PAYE, and moved house. Three days ago I recieved a letter stating that they was going to take what I owed for national insurance contributions through my tax code, I phoned them and they also informed me that in total I owed over £3500?? I never received any self assessment forms in the post, just this letter.

Why would I owe so much, are they fines for not filling my self assements, in contributions what else could they be? Also it says they will start taking this from April I'm worried now as I have a young family and we really struggle as it is aswell having a dmp with step change due to previous credit card debts.

My boss has offered to pay for his accountant to try and resolve this on my behalf. Would this be a good idea or would I be better off on my own.

Will I still have to pay these fines through my tax code?

How do I resolve this?

Sorry for the 21 questions I'm just really panicking about it and annoyed that this was the first time I heard about it as far as I was aware they knew I was no longer self employed, they must know I'm now employed as I am paying tax via PAYE ? Any advice or help would be really appreciated I m not eating or sleeping through panicking about how much tax they will take and how I'm going to make ends meet.

Replies (9)

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By mhtax
20th Jan 2014 21:29

Similar situation

My client was in same position.

I rang the self employed National insurance contribution office in Newcastle.

I explained the date self employment had ceased and they cancelled the charges from that date.

I then rang HMRC and asked for a technical call back. The officer I spoke to, after running through the criteria for being in self assessment, cancelled all the unnecessary returns, and therefore the penalty belonging to each of them.

I am still waiting for confirmation that the code has been returned to normal as Debt Management have to authorise that but it should follow through soon

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By johngroganjga
20th Jan 2014 21:50

As you have been offered the services of an accountant free of charge you should clearly take full advantage of that.

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By mrme89
20th Jan 2014 22:51

I agree with john, take up your bosses offer. It will be less stressful having a professional looking after the matter.

Looks like you have a good boss too!

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By petersaxton
21st Jan 2014 07:08

Accountant for free

Why would anybody possibly think that would not be a good idea?

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By Quokie123
21st Jan 2014 10:13

Thank you for your replys looking at the letters we have recieved I got one in dec and all it said was brought forward from previous statement £2711.05 please pay it now it was issued by self assessment department but It dosnt actually say what it's for then the one we got last week said £710 will be taking from your PAYE tax code and gave me the new code this was for ni contributions?

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By rjoconnor81
21st Jan 2014 10:44

Take up the offer of the free accountant straight away, they understand what they are doing and are able to speak to better trained call center staff at HMRC.  This could all be resolved in a phone call from the accountant.  At no point will you be better off doing this on your own.

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By Quokie123
21st Jan 2014 14:06

Thank you I have a meeting with the accountant next week hoping to at least get a little further into why we are being charged etc

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By mhtax
22nd Jan 2014 01:44

:@basil

I have spoken to HMRC this morning about the amended code for my client mentioned above.The code restriction has been applied for 2013/14 and included £400 penalties and Class 2 National Insurance contribitions totalling over £700. Although both the penalties and Class 2 have been cancelled they are struggling to find out how to cancelk the NI restriction

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By mhtax
22nd Jan 2014 05:45

Penaltys

The amount due on the statement will relate to the late filing penaltys.

Did you file all the returns for your period of self employment?

If you start from 2005/6 with penalties @ £200 per year up to 2010/11, then have penalties of £100, £300 and £900 daily penaltys in September 2013 for 2011/12, the total in October would be £2,500 plus interest. - not far off your statement balance. They will continue to add interest and then daily penaltys periodically so £3,500 including more than £400 Class 2 sounds correct or someone with all those returns outstanding.

Getting the returns cancelled will make all of the penaltys get cancelled too apart from any which relate to your actual self employment.

 

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