How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask bigduckontax Your Own Question
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4944
Type Your Tax Question Here...
bigduckontax is online now

I was self employed until my business folded up in 2005. Since

Customer Question

Hi, I was self employed until my business folded up in 2005.
Since then I have been asked to pay back money I owe and have been paying lots of penalties even though I wasn't working through tax return penalties. The last time I contacted inland revenue I was told I owe them 11000 pounds and I cant get my head around this. I am paying through my tax code even though my accountant contacted them regarding my business has folded up . Can you help.
Submitted: 2 years ago.
Category: Tax
Expert:  bigduckontax replied 2 years ago.
If you made tax returns on time there should be no penalties, but there will be interest on unpaid tax. There is a 5% surcharge on tax not paid by 28 February in the year after the tax year ends and another 5% on any tax bill unpaid by 31 July. The Inland Revenue ceased to exist some year ago when it merged with HM Customs and Excise to form HMRC. Ask for an explanation in writing, not on the phone, for the amount owing and if this is incorrect than appeal against their decision. This is done merely by writing a letter.