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TaxRobin
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Experience:  International tax
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I ceased self employment in aug 2007. I am now being charged

Resolved Question:

I ceased self employment in aug 2007. I am now being charged penalties for late self assesments for year ended 2011/ 2012 and 2013.
I have spoken to hmrc numerous times and am not getting anywhere.
Can hmrc charge late penalties when I shouldn't even be completing self assessments
Submitted: 3 years ago.
Category: Tax
Expert:  TaxRobin replied 3 years ago.
Hello,
Unfortunately yes, they can.
This all depends on whether or not you notified HMRC when you stopped.
If you fail to notify HMRC at once that you have stopped being self-employed, you could find that HMRC continues to send you self-assessment tax returns after you have stopped trading. If you ignore these returns you could be liable for penalties. In addition, HMRC may create an estimated tax bill if you do not complete and submit the tax returns on time. These estimated debts are legally due and can only be displaced by sending in a tax return within 3 years of the filing date for the return.
If you did not notify HMRC that you had stopped trading, did not file the last tax return or give a forwarding address, it is unlikely that you will be able to successfully apply for Special Relief to reduce the debt.
Your situation is dependent on how and when you let HMRC know that you had ceased.
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