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Self assessment needed?

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Hello, wondering if anyone could help please. I  have a client who had an income of around 5000-6000 in the 2013/14 tax year. He had no other sources of income. As far as I understand, this is below the personal allowance for thatthat tax year. However  he did not fill in a self assessment that year as he did not realise he had to as he  thought no tax was owed. And he's only realising now that maybe he should have done and is worried about penalties  

1. Would it be worth filing in a tax return considering that this is 5 years ago and no tax was actually owed?

2. If so  what penalties are chargeable in his case?

Many thanks  

 

 

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04th Oct 2018 08:54

No. None. Honestly. What a joke.

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04th Oct 2018 08:56

Did he have a notice to complete a return ?

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By Jayja
to lionofludesch
04th Oct 2018 09:26

Quote:

Did he have a notice to complete a return ?


No, he just remembered about this income
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04th Oct 2018 09:06

Why would he be worrying about penalties for not doing something that he didn't have to do?

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By Jayja
to SteLacca
04th Oct 2018 09:28

As his income is above 2500, technically he should have filed an SA for that tax year...

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to Jayja
04th Oct 2018 10:25

No, he shouldn't. The ONLY requirement for filing a Return is in S.8 TMA which at the most fundamental level is if HMRC have issued a notice to file.

Perhaps you are thinking of S.7 TMA which requires a taxpayer to notify charge-ability, but only if there is a tax liability.

I suspect, however, that you are thinking of what .gov.uk says, which is complete and utter bullsh!t.

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to Jayja
04th Oct 2018 11:49
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04th Oct 2018 09:12

Why does he think he has to?

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04th Oct 2018 09:18

ohhhhh dear, I can see why your client is worried.

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By Jayja
to JCresswellTax
04th Oct 2018 09:29

What would you suggest?

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to Jayja
04th Oct 2018 10:38

Jayja wrote:

What would you suggest?

He should speak to a good accountant.

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04th Oct 2018 09:49

What about subsequent years income - was it declared ??

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By Jayja
to bernard michael
04th Oct 2018 11:26

Yes, he's been employed and has had been on paye since with no additional income. It's just that 1 year

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04th Oct 2018 13:06

What type of income was it?
Was there a Class 2 NIC liability?

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By Jayja
to Kingfile
04th Oct 2018 14:54

It was income from working as a childminder. His employer did not operate paye and told him to register as self employed. He didn't as he believed he was actually employed.

However this income was not declared and he did not complete a self assessment that year as he did not go over his personal allowance

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to Jayja
04th Oct 2018 15:06

Well it looks as if he should have notified his self-employment, which would have triggered the issue of a Self Assessment return.

I'd be inclined to forget about it though and allow the client to stick to his story of being an employee.

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By Jayja
to Kingfile
04th Oct 2018 15:13

Should he file an SA for that year then?

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to Jayja
04th Oct 2018 15:28

As above.

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to Jayja
04th Oct 2018 18:12

Does he have a liability?
If not will HMRC care?
If you really must waste their time and submit a nil return, and no return has been required by HMRC for the year already, then there can be no penalty for late filing, only late notification. And the late notification penalty is calculated as...?

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