Not been self employed, hmrc question

I registered as self employed to start doing some work but then later decided it wasn’t feasible.

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 I registered as self-employed last October when I was told of a way to make some money doing some delivery work. I later decided it wasn’t suitable work for me and hence never took up the job and never earned anything from it. I didn’t spend on any expenses either. I thought I would cancel the self employment in my own time by calling the HMRC helpline but always dreaded being put on hold for half an hour... well weeks turned to months, and now the end of the financial year is here. I have to complete a self assessment at some point. I will obviously be filling it in zeroes for everything. Just wondering if I should just get HMRC to cancel this self employment status or to keep it running in case I do find something down the line to earn a couple quid. I am a married homemaker of 3 children and don’t get any benefits or tax credits at all because household earnings disqualify us from claiming, so my self employment (or not) does not really affect any household income, benefits or tax credits.

Replies (11)

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By johngroganjga
09th Apr 2018 09:28

It's up to you. You can either fill the form with zeros and submit it (if you really have no income to declare). Or you can ask HMRC to withdraw the notice requiring you to submit a return. They may withdraw it, they may not. They may say that until they see a return they are not necessarily going to accept your unsupported word that you had no income.

Thanks (2)
Oaklea
By Chris.Mann
09th Apr 2018 09:52

From what you say, I'd imagine that; with the explanations which you've included here and a call to HMRC, you should be able to have the notice to produce the return withdrawn.

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Replying to Chris.Mann:
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By andy.partridge
09th Apr 2018 11:07

You would have thought so, but a client of mine suffered a stroke just before taking up self-employment and all plans were cancelled. Our friends Harriet, Mike, Rachel and Colin still wanted a tax return.

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Replying to andy.partridge:
Oaklea
By Chris.Mann
09th Apr 2018 12:45

As with all things Harriett, Mike, Rachel and Colin, much depends on the; wind speed and direction. And, I kid you not.

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By Paul D Utherone
09th Apr 2018 10:03

Ring them (keeping a record of when you did and what was discussed

Explain that although you registered expecting to start self employment you changed your mind and did not actually start trading and receive any income

Ask them to withdraw any returns issued to cover the anticipated self employment under s8B TMA

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By Tim Vane
09th Apr 2018 11:47

If you give HMRC the information that you have given us then there is no way they will remove the requirement to file, and they will also register you for CIS/PAYE.

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By Rachv
09th Apr 2018 12:29

I just received an email from HMRC telling me to do my self assessment. I will do it and fill it in with zeroes. What should I do after that though? Should I just call them and ask them to cancel the self employment rather than leave it running?

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Replying to Rachv:
Oaklea
By Chris.Mann
09th Apr 2018 13:18

I'd suggest that you provide a detailed explanation, of your circumstances, on page TR7 - box 19.
Generally, "we" talk about the "white space".
Experience would suggest that HMRC do take note of this area of the tax return.

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Replying to fawltybasil2575:
Quack
By Constantly Confused
09th Apr 2018 15:25

Quote:

@ Rachv (your 12.29 post).

I assume that you are the OP who raised the initial question.

(1) I note your comment:-

“I have to complete a self assessment at some point”.

This comment appears to imply that you have NOT yet received a formal Notice to File, i.e. a Notice requiring the submission of the 2017/18 Tax Return. If so, then a letter to HMRC is advisable, of :-

“I intended to commence self-employment on or around xx/xx/xxxx . Such intention did NOT however materialise, and there are no plans to commence that self-employment (I shall of course contact you if and when I commence self-employment in future). Please confirm therefore that no further action is required by myself, and specifically that no Tax Return will be required for the 2017/18 tax year”.

(2) If however you HAVE received a formal Notice to File, then I would always send a letter to HMRC, in your circumstances, along the lines of:-

“In response to the Notice to File issued by you on xx/xx/xxxx, may I request you to formally withdraw that Notice, under S.8B TMA 1970.

I intended to commence self-employment on or around xx/xx/xxxx . Such intention did NOT however materialise, and there are no plans to commence that self-employment (I shall of course contact you if and when I commence self-employment in future)”.

[Others may prefer to notify HMRC by means of a phone call, instead of a letter].

I would NOT recommend submitting a Tax Return, with zero figures in the self-employment pages, since:-

(i) This might possibly result in your receiving (rightly or wrongly) a Notice to File in respect of future years’ Returns.
(ii) It would strictly speaking imply that you DID indeed operate in business in the tax year, albeit receiving no income and paying no expenses, and HMRC would (rightly) construe this as indicating that the business still operated at 5 April 2018, and hence that it probably operated from 6 April 2018 onwards. Very importantly, this would not accord with the facts (namely that NO self-employment existed).

Basil.

How did you make your post appear with a red background?!?!

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Replying to Constantly Confused:
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By Cheshire
09th Apr 2018 15:31

I saw one in red the other day after Sift announced the new short delay in posting to avoid spammers or whatever it was. Thought I had drunk too much at lunchtime!

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Northumberland flag
By MJShone
09th Apr 2018 16:25

@Constantly Confused:
Given your avatar, I would have thought you'd have identified the colour as salmon. (That's what it looks like to me, and I'm not a duck.)

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