What happens if I don't pay late tax return fine

[Air22]

Hi,

I did some mystery shopping a few years ago, so declared myself as 'self-employed'. I didn't think I had to do a tax return for 13-14 as I didn't actually do any mystery shopping, that year so I was hit with a 100 pound fine. No tax was owed. I'm a student who could really do without this, I'm not even a proper 'self-employed' person! I appealed and it was rejected. On my letter, it says there is a 5 percent penalty on an unpaid payment 30 days, 6 months and 12 months after the due date. So if I didn't pay the penalty for 12 months, is it correct that I would owe around 115 pounds? What if I still didn't pay? I used the calculator on the HMRC website, but that only applied interest to the actual tax bill, which would be 0 in my case, not the penalty, so I'm confused.

[Ford]

what you cld've done is just declared it as 'extra income' on a short return. or left it with the employer as an employee PAYE if that was poss.

the return is usually in arrears ie one yr behind, so the next yr wld still be required even if declared no longer self employed before. have you notified them as no longer self employed. if not, you'll still have to do a return.

did you also apply for the small earnings certificate re exemption re self employed NI conts?

re late payment/appeal not sure. but, i think the 5% maybe re the tax due, there being penalties for late payment?

eg http://www.rossmartin.co.uk/penalties-a-compliance/114-penalties/721-tax-penalties-self-assessment-late-filing-a-payment-from-201011

[blondebubbles]

Have you now completed the return? If you don't pay after 12 months the penalty would be £1600 not £115.

 

Late tax return penalties

 

If you have missed the final deadline to file your 2013-14 return HMRC will charge you £100. The following fines are levied for subsequent missed deadlines:

 

Three months late - A fine of £10 for each following day up to a 90 day maximum of £900. This is in addition to the fixed penalty above, so the overall fine could be £1,000.

 

Six months late - A fine of either £300 or 5% of the tax due, whichever is the higher, will apply on top of the penalties above.

 

12 months late - Another £300 fine or 5% of the tax due, whichever is the higher, will be added to your bill on top of the penalties above.

 

In serious cases you may be asked to pay up to 100% of the tax due instead, as well as any tax you owe, doubling your payment.