Submitting a tax return for a previous period

Completing a return with inconsistent information

Didn't find your answer?

Helllo,

I'm an accountant in industry helping a friend so forgive me if I'm asking the obvious...

My friend has received a letter (and fine) from HMRC advising they believe he was self employed in FY16.

He does not believe he was and has contracts of employment for the 3 roles he fulfilled in FY16.

He has a P60 which only included income and tax from employment 3. He has a P45 from employment 1 and 2 - neither amounts on the these P45's are included in the P60.

I guess employment 1 & 2 were not entirely above board as HMRC have no record of the bout nor appear to have received the tax deducted.

My question is what amount to enter against what pages in the self-assessment.

I would assume to complete 3 employment pages for each of the 3 roles using the data from the P45's for 1 & 2 and for 3 to use the P60 values.

He does not have payslips - companies for employment 1 & 2 are out of business. No bank statements and he has moved bank but if needs must I'm sure could obtain the historic statements.

P45 for employment one shows income of ~£2,000 tax paid ~£50. P45 for employment 2 ~£50 income no tax. P60 containing income from only employment 3 ~£2,500 income and ~£250 tax deducted.

Thanks in advance for your help!

 

Replies (5)

Please login or register to join the discussion.

JCACE
By jcace
12th Nov 2018 19:54

Your friend appears to have earned just £4,550 in the year (under PAYE). Did he have any other sources of income that perhaps HMRC know of, and which could therefore give rise to a requirement to self assess for tax? eg property development?

Thanks (1)
RLI
By lionofludesch
13th Nov 2018 08:07

Your friend appears to be employed. He has contracts saying so.

You need to ascertain what hard evidence HMRC has that he was self employed.

I suspect they have none.

Thanks (1)
By SteveHa
13th Nov 2018 08:08

If he received no other income then you may be better off asking HMRC to withdraw the notice to file, rather than submitting. Of course, it depends on the facts.

Thanks (0)
By JCresswellTax
13th Nov 2018 09:17

Agreed, DO NOT file the Tax Returns or it will be harder to get rid of the penalties.

Speak to HMRC on the basis that the notice to file was issued in error.

If you can get them to withdraw the notice to file, the penalties will file suit!

Good luck.

Thanks (0)
avatar
By Accountant A
13th Nov 2018 16:03

Stuarth111 wrote:

I'm an accountant in industry helping a friend so forgive me if I'm asking the obvious...

I think this example illustrates perfectly why people should not attempt to "help" friends with matters outside their relevant experience and competence.

I've known plenty of highly skilled and competent management accountants but I wouldn't have asked any of them for tax advice.

Assuming that the full facts have been established (and I think it's a big assumption given the total income currently reported as £4,550), you've apparently set about completing tax returns when that may be entirely the wrong thing to do.

Your friend would be best advised to pay for some advice from someone who deals with personal tax for a living.

Thanks (0)