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  1. #1

    Penalty for not telling HMRC?

    So I used to be self employed for three years up to March this year. I didn't know I had to tell HMRC but I just found out I do. I only made around 200 or less altogether over the three years so I know I don't need to pay any taxes because you have to be earning 1100 or more but I'm really worried about the penalties. It's 100 for being 3 months late with tax returns so my first year of being self employed will be a lot and I'm so worried I won't be able to pay it all. I'm still waiting for a UTR number so I can file my tax returns. I plan on doing them as quickly as possible once I get the UTR number. This is really stressing me out. I never told my mum I was self employed either and still haven't, I'm worried she will have to pay a fine for not telling I was self employed. If she is fined, how much will it be?

  2. #2
    Declaring your tax is a personal responsibility, so it's likely to be you facing repercussions, should there actually be any. From the numbers though, I'm guess that 1. You couldn't pay a fine personally, and 2. HMRC really couldn't give a flying

    As long as you declare it to them, they'll look favourably, should they want to launch an investigation, you'd have to provide evidence, but realistically with suck small numbers involved, they likely won't care.

    Definitely inform your mum so she's aware, hiding it will only make things worse.

  3. #3
    Your mum is nothing to do with this. You alone are responsible for your tax affairs, and your mother has nothing to do with it, including any penalties HMRC may impose.

    Regarding penalties, they are based now on a percentage on something called PLR - Potential Lost Revenue which is, in other words, the tax that was due but not declared or paid when it should have been. There is no PLR on the figures you quote, and thus no penalty to pay with respect to this. However, as you know, once you become self employed you have to tell HMRC and complete a tax return, even if there is no tax to pay. The penalty for failing to inform here is rather different, and you might face a penalty - however, given the very small sums involved and the fact that there is no tax to pay, I think you'll be OK with it.

  4. #4
    There will be no penalty. This is not a late return as they never sent you a return to fill in. It is a failure to notify HMRC that you need to file a return. The penalties for this are calculated as a percentage of the tax due. No tax due, no penalty.

    Even if there was tax due HMRC are very nice about unprompted disclosures of genuine mistakes so you would be fine anyway.


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