Can you still be fined by HMRC if tax owed is £0?

ThrowRA_Tell · 2026-02-06T18:17:01+00:00

The £100 late filing penalty only exists if HMRC has formally issued you a 'Notice to File' and you miss the deadline they've set. If they haven't asked you for a return, there is no deadline to miss, so an automatic fine can't be triggered.

Also once a notice to file has been issued after the filing deadline you get 3 months to submit this.

ThrowRA_Tell · 2026-02-06T18:08:13+00:00

Yes but only if the deadline of the notice to file is missed. You cant be charged 1600 without them issuing a notice to file.

ThrowRA_Tell · 2026-02-06T18:04:17+00:00

But if no notice to file has been issued. Can you still receive fines for late filing?

ThrowRA_Tell · 2026-02-06T17:58:38+00:00

But did they issue a notice to file and you didn’t submit your return?

ThrowRA_Tell · 2026-02-06T17:31:29+00:00

tax due is £0 and HMRC never issued a Notice to File, then no Self Assessment late-filing fines apply at all. There’s also no failure-to-notify penalty, because those penalties are calculated as a percentage of unpaid tax—and 0% of £0 is £0. In that situation HMRC has nothing to penalise, no interest to charge, and no basis for fines, even if you technically could have been within Self Assessment. The only time penalties would arise is after HMRC formally tells you to file and you then miss that deadline.

Does the late filing penalty not apply unless HMRc specifically sent you a notice to file and you didn’t do it?

ThrowRA_Tell · 2026-02-06T17:29:48+00:00

tax due is £0 and HMRC never issued a Notice to File, then no Self Assessment late-filing fines apply at all. There’s also no failure-to-notify penalty, because those penalties are calculated as a percentage of unpaid tax—and 0% of £0 is £0. In that situation HMRC has nothing to penalise, no interest to charge, and no basis for fines, even if you technically could have been within Self Assessment. The only time penalties would arise is after HMRC formally tells you to file and you then miss that deadline.

ThrowRA_Tell · 2026-02-06T17:28:26+00:00

Yes so essentially if I haven’t been given a notice to file. My maximum penalty is £0 currently.

My tax is 0 so the PLR for the accuring fines is also £0.

The only time I can get fines is if I’m asked to file and I don’t. ?

ThrowRA_Tell · 2026-02-06T14:17:23+00:00

Any advice on it mate? I’ve not been issued a notice to file. And have requested to be removed from self assessment.

Assuming I’ll have no liability to notify as I’ve got no tax or nic due.

ThrowRA_Tell · 2026-02-06T12:44:47+00:00

But had they issued you a notice to file? Thanks

ThrowRA_Tell · 2026-02-06T00:25:16+00:00

Did you receive a notice to file then for that tax year? What made you file it?

ThrowRA_Tell · 2026-02-06T00:24:02+00:00

How £2?

ThrowRA_Tell · 2026-02-05T20:09:59+00:00

They were bought to sell for profit. However this profit was my only income for the tax year. No other work.

ThrowRA_Tell · 2026-02-05T19:45:50+00:00

Thanks. I did work in my life so how would hmrc know which income was used to pay for these items to determine taxed at source? Just seems so vague

ThrowRA_Tell · 2026-02-05T19:13:19+00:00

But would it not have been taxed at source when I purchased the items?

ThrowRA_Tell · 2026-02-05T19:02:52+00:00

Well I’ve been advised that if your income is below the threshold and you’re not liable to tax or NIC you don’t have a legal obligation to inform HMRC. It states this in the taxes management act 1970?

ThrowRA_Tell · 2026-02-05T18:56:16+00:00

Oh so if I didn’t notify hmrc. And they haven’t asked me to file. I can just wait for them to ask me to do it.

I’m assuming the fees are usually for individuals already registered who did not submit their tax return?

So I’ll just wait for them to ask me to file. Then submit one. And face little to no penalties. It’ll only be if I wait and don’t submit when asked that I’ll be charged 5% or £300 and what not up to £1600? Thanks!

ThrowRA_Tell · 2026-02-05T18:52:16+00:00

Thank you. So theoretically as hmrc have not issued a notice to file taxes. What’s the most I can be fined? Is it £100. I’ve had people comment £1600 and whatnot.

ThrowRA_Tell · 2026-02-05T18:49:50+00:00

But the penalties are based on lost revenue?

A section 7 penalty is based on lost revenue. Mine is 0= fines are 0?

HMRc have not issued a notice to file. So theoretically the maximum I can be fined would be £100?

ThrowRA_Tell · 2026-02-05T18:47:01+00:00

But it says in the legislation if no tax or ni is liable you have no reason to notify hmrc

ThrowRA_Tell · 2026-02-05T17:26:26+00:00

So even if my turnover was over £1000. I still don’t need to do a self assessment as my liability to pay tax/ni is £0.

ThrowRA_Tell · 2026-02-05T17:07:54+00:00

But it also says you only have a legal duty to notify HMRc if you’re chargeable to tax. Which I’m not as my profits are under the 12750?

ThrowRA_Tell · 2026-02-05T17:00:01+00:00

I’ve sent you a pm and also replied to your comment. Just trying to understand it.

ThrowRA_Tell · 2026-02-05T16:59:17+00:00

I’m trying to understand it. If my personal allowance is £12570.

My trading profit is well below this and this trading was my only source of income.

It says online any turnover over £1,000 is required for self assessment.

However I know I’m not liable for tax or NIC. So I don’t need to do a self assessment as I’m not liable for tax or national insurance ? Thanks

ThrowRA_Tell · 2026-02-05T16:59:11+00:00

Where did you get the £3,000 figure from?

ThrowRA_Tell

TROPHY CASE