unregistering self employment

[mahi175]

Hi,
I have registered for self employment in 2007, and i haven't filled tax returns from them. Basically i was never self employed, i'm in full time employment all the time.
Recently i HMRC sent me letters to fill in my tax returns for 2009 and pay penalty for not submitting 2008 year tax returns.

What should i do now, how do i unregister form self employment to avoid this in future, do i need to file tax returns for the last two year? Can i do it my self or need to see an accountant?

Please help me, i'm really worried

Thanks

 

[Richard231]

Ring HMRC and tell them what has happened, and make sure that they de-register you. At least this will stop problems going forwards.

If they make you complete 08 & 09 returns then they will be nil returns anyway (by which I mean no tax) so at least their will be no interest, just the penalties. You should be able to convince them that you were registered in error and shouldn't have to complete return, in which case brilliant.

If not, you might want to try to complete it yourself (the online version isn't too bad at all, especially as you'll only be filling in about 20 boxes!), or it may be worth a try at getting an accountant to at least attempt to get HMRC to step down.

Out of curiosity, how come you did register for self-employment?

 

[David Griffiths]

You don't "de-register" as self employed.

You need to tell the National Insurance Office that you are no longer self employed and do not need to make NI contributions. Given their efficiency in dealing with things, the best way if you are paying by direct debit is to cancel it with your bank.

As the self assessment forms have been issued, you will have to complete them, with details of your employed earnings and tax deductions. There's a fair chance that you will get another return in April, because it seems that the returns for issue are actually selected in November and December. Get that form completed and submitted promptly - if you leave it late again you'll get a return in 2011, and never break the cycle.

Once you get your returns up to date and get the 2010 return submitted early, the Revenue's processes should identify that you shouldn't be getting self assessment returns and take you off the list. If you don't get a letter to this effect within about 8 weeks of submitting the form, ring them up to see if they've processed it.

 

[Richard231]

thanks for correcting me - at least I'll know for next time now!

 

[Jaykay]

Also worth mentioning that the penalty is tax geared. If you do not owe them any tax, there will be no penalty. Bet you owe them 80p in tax plus 80p penalty! Love our tax system!

Do make sure that you cancel the NI contributions then (if you fancy the fun) try asking for a refund of the overpayment. 6 months of letters stretch before you.

 

[ScottyDog]

I went to work abroad in March 2002 through a UK agency and via a management company (dropped the management company a couple of years later after setting up our local co-op company in my new country of residence). Their accountants registered me as UK self employed just before I left so that I could claim the E101 and E102 as a self employed person seconded abroad . This mean't that I was excused paying the local social security for the 1st two years as I was paying it back in the UK to HMRC NI via direct debit at about £11/month. Well I ended up being out of the UK for 8 years and being non UK tax resident (I was registered as non UK tax resident at the centre for non residents Liverpool after one year of working in my new country) and did not have any UK income during that time. Myself and a couple of other contractors set up out own local company in the country we were working and tax resident and paid all taxex and social security (after the E101 and E102 had finished) there.

I returned to the UK a few months ago (after being away for 8 years) and completed my P86 and cancelled the direct debit with the HMRC NI contributions at £11/month about 4 months ago. I just received a letter from the NI office at my new UK address (from my P86 form) for a bill for the last 4 months of about £50 (from the date I cancelled my direct debit).
I should have cancelled my UK self employment status I guess about one year later in my new country of residence but never thought anything of it. so kept on paying the £11/month for all those years.
Anyway I called them and told them I am no longer self employed and never carried out any UK self employment duties in the UK but was seconded abroad. All they wanted to know is a date of my termination as self employed and they say I will get back the payments that I have been making over the years via my direct debit. What date should I put? I was thinking that as I used the E101 and E102 that I should tell them that my self employment status ended two years after I left the UK to work abroad. I don't really care about the refund but just want to give a correct date.

HMRC Center for Non Residents did send me a tax return for the year 2002-2003 which I completed abroad and they then took me off all together i.e. no more tax returns sent to me abroad. It looks like the NI office and the tax office don't communicate as the NI office didn't know I was abroad but the tax office had me 'correctly' listed as non Uk tax resident.

 

[yanita]

Hi,
I have registered for self employment in 2008,and sent a letter to stop my self employed february 2009 but I did not fill tax returns from.What should I do?Please help!! Also I'm not in UK no longer.