Over the last few weeks we’ve seen HMRC sending out penalty notices to those who have not submitted a self assessment in previous tax years. HMRC certainly seems to be undertaking a lot of aggressive penalty farming – it must be harvest time!
The fines being issued date back several years and, in some cases, amount to several thousands of pounds being the maximum fines available plus interest.
Change of address
What we are seeing developing as a pattern is fines being issued to those who have changed address but failed to tell HMRC at the time. As the address administration gets brought up to date over time then so HMRC have a valid and current address to send the penalty notice to; hence why the amounts can appear to be large for the several years that the tax payer was out of contact with HMRC.
So what should you do if you move?
Post Re-direction
The first thing that we would recommend is making sure that all post is re-directed. That way you’ll not miss anything important.
Postal re-direction, set up at the Post Office, should be done for both business and personal post.
Of course, if you operate a limited company then your post may well be going to the registered office of the company which may not be your home address. It is vital to have post re-direction set up with your registered office provider too.
Let HMRC know your new address
Then you have to start the process of letting HMRC know your new address.
That’s not one but many letters – so much for it being one Government department!
HMRC’s systems do not talk to each other.
Here’s a roundup of who you’ll need to tell:
Self Employed and Sole Traders
HMRC for the self assessment tax return
If an employer – HMRC PAYE for the employer
If VAT registered – HMRC VAT
Limited Company
HMRC for Corporation Tax
Companies House (a separate Government department not connected to HMRC) for the company record if the registered office address changes
If an employer – HMRC PAYE for the employer
If VAT registered – HMRC VAT
As a Director of a Limited Company
HMRC for your own personal self assessment tax return
HMRC for your employee record (through your RTI returns) for any pay you receive from the company
Companies House
It worth mentioning separately that updating the registered office at Companies House will not update any HMRC address details; nor will updating the address at HMRC change the information stored at Companies House.
Address changing is bureaucratic but essential if you want to stay on top of things and avoid fines.
You are responsible
Remember that it is your responsibility to keep all of your addresses up to date with HMRC, Companies House and your accountant, if you use one.
Do not assume that your accountant knows that you have moved; especially of you haven’t told them!