When dealing with Paye tax refund, or tax return, you need to be on the ball and act quickly. Delays usually mean fines and penalties. HMRC expects a tax return on time, and if you think you no longer need to complete a tax return, let them know as soon as you can.
How Do I Do It?
If you think you no longer need to complete a tax return, call HMRC on 0300 200 3311 or use the online form immediately. Then complete a Self-Assessment tax return. To do this, you will have to wait until the end of the tax year.
When it comes to tax return, you must pay the tax that is due. HMRC will cancel your Class 2 National Insurance contributions. It is important that you provide HMRC with your correct address for the next 12 months. Maintain your records for the next 6 years: receipts, bank statements, Paye tax refund, etc. don’t throw anything away. File it all.
What if I Already Received a Letter From HMRC?
If you have received a letter from HMRC, but you don’t think you need to file a tax return, still contact HMRC. Three things can happen: HMRC might agree to cancel it: you won’t need to submit it, and they’ll remove penalties. HMRC might not agree to cancel it: you will need to file a tax return and explain the change in your circumstances. If HMRC thinks you have not paid enough tax, they might agree to cancel the tax return, and issue you a “simple assessment”.
What Happens if I Haven’t Called HMRC Yet?
If you have not informed HMRC, they will continue to send you Self-Assessment tax returns. HMRC may create an estimated tax bill for you. This legally due bill can only be removed by filing a tax return.
Related Post: How Do You Claim UK Tax Back?