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Sam
Sam, Accountant
Category: Tax
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Ive invested in Zopa since 2007 but not declared the tax on

Resolved Question:

I've invested in Zopa since 2007 but not declared the tax on earnings. well it was only 90p in the first year, but i forgot about it after that and the total undeclared income up to 2013 stands now at £200. OOOPS! am i going to get hammered when submitting this declaration to HMRC? i pay all my tax otherwise by PAYE. so i'm not accustomed to filling out the habitual self assessment forms. i was told i could get this collected by PAYE, but HMRC are on industrial action and i can't get them on the phone.
Submitted: 3 years ago.
Category: Tax
Expert:  Sam replied 3 years ago.
Hi

Thanks for your question and asking for me.

Have you had any contact from HMRC regarding this income or is it just a case that you forgot to declare it, and have just realised this?

If its a case that you have overlooked this amount - then assuming you are a basic rate taxpayer - then the tax owed (for 2013) will just be £40 -

And if this represents all years other than 2007 (when you advise you made 90p) then 6 years x £40 = £240 will be the total tax owed, plus 3% interest per year so not a vast fortune.

You are correct in that HMRC can collect this through your PAYE income, so I would be inclined to keep this low key, by simply writing to HMRC (let me know if you need an address) and let them know that you overlooked this investment income and detail each year the money you have earned.
And also your desire to have this tax collected through your 2015/2016 tax code (next full tax year)

I feel they will simply assess you under PAYE (through a P800 PAYE tax calculation) to establish the total tax due, and then collect this through nest years tax code, and you may even find no interest is charged !


Its unlikely you will be put into self assessment unless you are a 40% or 45% taxpayer but I would not worry too much over this small amount of undeclared income

Let me know if you have any follow up questions, or need an address to write to
Thanks

Sam
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