how can i get rid of this problem?

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i was self employed back in 2008 as a construction labourer. i was only self employed for the one tax year then i stopped and joined the army. i did no other work from then until not self empoyed or otherwise. now hmrc have contacted me saying i owe thousands of pounds in late tax return penalties i cannot remember if i ticked the box that said ceased traiding as that was some years ago. they are trying to get me to fill in all tax returns from 2008 to now wich is difficult as i have no information and in asking them for the information i was told it will take 30 days it has been 2 months and nothing still. PLEASE HELP I CANNOT AFFORD THESE PENATLY FEES

Replies (9)

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By SteveHa
04th Aug 2017 11:05

Write to them and explain the situation (including ceasing self-employment and that you have only received income from employment since) and ask them to withdraw their notices to file for all years under TMA 1970 S8B.

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Replying to SteveHa:
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By andy.partridge
04th Aug 2017 11:26

But the OP was self-employed and, it seems, didn't file a tax return for that particular year.

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Replying to andy.partridge:
By SteveHa
04th Aug 2017 11:33

The OP says he can't remember if he ticked the box to say S/E ceased, which suggests that a Return was completed for the self-employed year.

I read returns required from 2008 as being from 6 April 2008 (i.e. 2008/09 as the first one)

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RLI
By lionofludesch
04th Aug 2017 11:24

Whatever you do, don't fill in the returns.

It's a sly trick HMRC use to get you to accept the penalties.

If they won't withdraw the returns, ask for the case to be reviewed by a more senior officer. If that doesn't work, complain.

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By Paul D Utherone
04th Aug 2017 12:59

Presumably this must be for daily penalties that were introduced for returns from 6/4/2010.

Prior to that the penalty was the lesser of £100, or tax payable, for failing to file a return required by HMRC.

As mentioned above DO NOT COMPLETE AND SUBMIT RETURNS BECAUSE HMRC TELL YOU TO DO SO AND THEN APPEAL.

As also mentioned you should write to HMRC explaining that you ceased self employment on ??/??/20?? and joined the army, since which time you have been taxed under PAYE, and ask that all the requirement for you to submit returns for subsequent years be withdrawn under s8B TMA. And don't accept 'No' as the first answer but ask for any decision to be reviewed.

If that does not produce the desired result you should either appoint an accountant to assist, or maybe try contacting TaxAid - http://taxaid.org.uk/

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By free-rider
04th Aug 2017 13:10

I do not know why everyone always advised not to file returns as this is some kind HMRC trick.

At the end of a day the Notices were issued so a taxpayer was required to deliver them, but no returns were filed. TMA1970 S8B allows withdrawal of returns if requested w/I 2 years of issue date and this won't catch all the years.

I always prepare returns, submit and then write to HMRC asking to remove the penalties as no extra tax was due and the client was not actually self-employed. Works every time.

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Replying to free-rider:
By Paul D Utherone
04th Aug 2017 13:23

Then you need to read the plethora of penalty case tribunal reports that there have been recently where the return has been submitted, sometimes even acknowledging that HMRC has told the taxpayer to do so when s8B was available to them, HMRC has refused to reduce the penalty to nil, the taxpayer has gone to FTT, and the FTT has said "sorry that's the law and there's nothing we can do to help you".

Maybe you have been lucky to date, but completing and relying on HMRC to then cancel the penalty, rather than using the s8B option available to you and the client, is a dodgy path to follow

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Replying to free-rider:
RLI
By lionofludesch
04th Aug 2017 13:23

free-rider wrote:

I do not know why everyone always advised not to file returns as this is some kind HMRC trick.

At the end of a day the Notices were issued so a taxpayer was required to deliver them, but no returns were filed. TMA1970 S8B allows withdrawal of returns if requested w/I 2 years of issue date and this won't catch all the years.

I always prepare returns, submit and then write to HMRC asking to remove the penalties as no extra tax was due and the client was not actually self-employed. Works every time.

You've been very lucky.

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By bernard michael
04th Aug 2017 15:43

Where did HMRC send their correspondence if you were in the Army and did you receive it and do nothing?
Were you in the UK or abroad

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