Question

I received a penalty notice from HMRC.

I am being penalised for non filing of tax returns even while working and paying tax.

Answer

David,

If you are working are you a PAYE employee, or pay as you earn?

If you are, then you are correct, you do not need to file a tax return with HMRC as each year that tax account is settled or cleared in April when the tax year ends. Your taxes are paid by your employer’s accountant each pay period, which for many of us is monthly.

How much is the penalty?

Were you self-employed at all at anytime?

Did you have a second job, working 2 jobs at the same time?

Have you discussed this with your employer?

Have you discussed this with HMRC? It could be a scam of some sorts. Ring HMRC directly on a line on their web site.

Your employer may need to inquire with their accountant, and you will need to phone HMRC to inquire as to why you received the notice.

From my experience, HMRC does make mistakes, mistakes based on the information they receive. If you do not provide the correct tax code or tick the right box, they can take out too much tax. This usually gets caught and corrected in the form of a refund.

If you had a second job, working 2 jobs at the same time, your second job is taxed at a higher rate. If that employer or yourself, failed to disclose this, you could owe taxes.

If your employer changed the name of the company mid-year or anytime during the tax year, HMRC may think you earned double the wages as they see 2 different employers, with separate wages.

Let me know the answers to these questions, and speak to HMRC and get back to me and we can look at this further.

Regards,

Jon

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