There are many fines that you can pay to HMRC. Fines for not submitting tax returns or accounts or VAT returns. If you don’t hit the deadlines or get things wrong it can be expensive.
In my list of ‘worst fines ever’, I’d have to nominate the personal tax return as the worst.
Let’s suppose you are self-employed and you have to do a tax return. You complete the tax return every year on time (31 January).
Then you get a job so you stop self employment. However, you don’t then inform HMRC that you don’t need to do a tax return. (You only need to do a tax return if you income that isn’t employed income).
You don’t think you need to do a tax return but HMRC are expecting one and if HMRC are expecting one then you need to do one!
However, you don’t submit a tax return. The fines are £100 for not submitting a tax return if you don’t do it in time.
If you don’t do it within 6 months of being over due – by 31 July – this fine multiplies by 12 to £1,200!!!
£1,200!!!!!
So for someone who now ISN’T self employed, they are faced with a fine of £1,200.
If you do stop self employment make sure you (or your accountant) informs HMRC that you no longer need a tax return.
