Self employed penalties

[Terrifieddebt]

Today my other half received a letter stating that they are adjusting his tax code to k149 due to unpaid self employment tax. He had a letter about a month ago stating that he owed money due to penalties for not returning self assessment tax returns, however he is employed by a company where he has been paying taxes and not actually self employed. He did do a spurt of taxi driving over Xmas a few years ago but filed and paid the taxes then stopped doing it. 
 

the amount owed in total is £2800, I am on maternity and we can not afford the extra £240 a month tax ecspecially for something that he shouldn’t necessarily owe as he’s not self employed. 
 

any advice would be appreciated. 

[ericsbrother]

I wold bet that most of that is penalties that wouldnt apply if he hasnt had to file a SA return for years. HMRC often get this wrong so he needs to find out the full detaisl   such as for what year or years is the supposed tax liability/filing penalty, how did they assess the liability and hwo is the debt made up- ie waht is tax due(and how calculated) and what is penalty charges as there is a max that can be charged even if he is totally at fault.

they will also say it is his job to know they are going to get things wrong adn he shpuld have used clairvoyance to know they would screw up and not tell him.

There is a tribunal any tax bill can be taken to but I think that this is much easier to sort out than that.

 

I hope he hanst agreed to anything and if they are taking the money at source he gets this challenge in pronto and demands they at leat put him on week 1 tax until they have sorted it out