my partner has been sent a tax bill for 11.000 pound but he hasn't been self employed for 5 years.?

Question

for the past 5 years my partner has not been self employed he has worked for a building company and in a wearhouse and pays tax though his wages every week so why does he keep having letters saying he owes cause of late returns the amount is now up to 11.000 pound he has been to court 2 years ago cause of this and they dropped the case because he wasn't self employed anymore and that they would contact inland reveue to tell them this and they said that he didn't owe anything.

Answer 1

You`ll need to talk to the Inland Revenue and get them to understand he's no longer self employed.

It can be very difficult though, I had the same problem years back, when I packed in working for myself and started working for an employer. For the next 2 years I had to fill in tax returns, even though there was nothing to put on them, and it took that long to get it through to the Inland Revenue I wasn't working for myself any more!

Theres no easy answer to this, just keep phoning them until you get someone with a bit of common sense who can sort this for you.

Answer 2

By law if a SELF ASSESSMENT (not self-employment) tax return has been issued by the Revenue it MUST be completed and returned.

If you do not then the Revenue will do a number of things, first you will be attracting fixed penalties for non-filing, you will also have determinations issued (estimates of the tax due). These determinations are legal and enforceable. The only way to overule a determination is to send in the relevant tax return. You will also be attracting interest on payments not made.

Eventually you could also attract what is called daily penalties, which can be as much as £60.00 per day per return that is outstanding.

It does not matter what type of employment your partner is engaged in as there are pages in the reurn to record tax that has already been deducted say under a PAYE scheme.

Enforcement starts with a visit from a distraint officer (baliff) where goods will be seized and sold at public auction to be paid to the debt. Following that if the debt has not been cleared it will then go to County Court and on a debt of £11,000 then it will be with a view to bankruptcy.

This if it happens will stop the debt but will not stop the requirement to submit the tax returns, and then the debt starts mounting again.

Ok thats the bad news. What to do about it. Simple contact the Revenue obtain the outstanding tax returns , complete them and send them in. If after this there is still a debt you can, provided one has not already been given and failed, ask for a time to pay arrangement.

In any event do not ignore this it will NOT go away, talk to the Revenue.

Answer 3

most of the advice in the previous replies are deceptive so be careful. MMy suggestion is to place up your tax return as quickly as obtainable after 5th. April 2008. My journey is that maximum subcontractors gets a reimbursement of a few style in the event that they're, as you're, suffering a tax deduction at source. besides the undeniable fact that, this could matter on your point of earnings. in case you're doing properly sufficient to have strayed in to a a strategies better taxable earnings variety you will no longer. expenditures additionally remember. you're able to see a reliable accountant-- man or woman who specialises in the form industry if obtainable. He could includein your expenditures declare products which you will no longer have seen, alongside with use of domicile as workplace, small ingredient for companion/companion answering classified ads for paintings at the same time as you're faraway from domicile and so on. Any tax bill will could desire to be paid by skill of 31/a million/2009 yet any refund could come interior of weeks of submission of your tax return. make helpful the refund is paid to you and not your accountant.

Answer 4

For goodness sake get him to ring HMRC and make an appointment with a named person for a face to face interview. Once they have admitted the error get them to put it in writing that the tax is cancelled and he has been removed from self assessment. It will probably just be a case of making 'nil' returns.
If they continue to mess about, write a letter of complaint to the Area Director - the tax office has to give you his/her name.

Answer 5

even though he wasn't self employed if the returns have been sent out he has to complete them by law. hmrc will not go away.go to your nearest enquiry centre with the p60's from all years and fill the returns in. the £11,000 is an estimate on past self employment earnings not a exact bill. As soon as the returns are completed they will reassess the bill and cease his record. phoning will not solve the problem (HMRC EMPLOYEE)

Answer 6

Just because you are not self employed this does not mean that you don't owe tax. Your employer merely pays your taxes on your behalf, It may well be that his employer has underpaid throughout the year. For 11GBP, I would just pay it and be done with it. Time & effort to resolve would cost alot more.

Answer 7

Citizens Advice for you. These peple are getting too poweful for their own good never mind ours.

Remember the government and it's servants can lie as much as they like especialy when not under oath and if they are they will give misleading answers. Remember the "economical with the truth comment" which was about a spybook published in Australia

Answer 8

Just as a side point - HMRC don't have Area Directors anymore. You need the name of the 'Small Business Unit Head.'

Answer 9

I think you need to show them how the original claim was thrown out, also try your local citizens advice bureau or get a solicitor.

Good luck.

Answer 10

Good Luck, make sure you have all the proof you need, once they are investigating you, it's up to you to prove everything, just get back in touch with them,