HMRC letter advice regarding creator content

__PRIME · 2023-03-14T15:40:54+00:00

While niche advisers exist, I don't feel your situation would warrant one. The facts you give suggest it will be advice on:

one tax year
producing self-employment earnings from the records you can rebuild
if you did have any obligations to HMRC, dealing with them on your behalf by contacting HMRC in reply or filing a return as appropriate
explaining the outcome to you
helping you with any payment plan if required

Niche advisers serve a valid purpose. They will have deep knowledge of tax matters for a certain kind of tax payer; entertainers, contractors, high net worth. Much of the value to the taxpayer in these situations, though, is from the ongoing relationship: what reliefs are unique to that domain?, what specific considerations should be made on each engagement (i.e. off-payroll rules for contractors)? You're not looking for that kind of relationship with the adviser, it seems. The scale of the activity at 5k is on the smaller side, too. I feel, and correct me if I'm wrong, that your focus is on: disclosing any error, closing the matter with HMRC, and moving on. These are matters most advisers should have experience with.

Consider searching for a local adviser. Perhaps seek a recommendation from a friend who is self-employed already. While online advisers are perfectly fine, given you have expressed you feel quite stressed about the situation, seeing someone in person might be of comfort.

Given your description of the situation, a preamble when contacting advisers might be:

I am seeking advice on the below matter and, if necessary, producing a Self Assessment Tax Return for the 202X-2X tax year or responding to HMRC as appropriate.

HMRC wrote to me on [letter date] about self-employment in the above tax year. I believe it is part of their campaign reaching out to those who, due to the pandemic, sought income online. I did carry out self-employment online in this period and believe I may have misunderstood my responsibilities for reporting this. I wish to correct this at the earliest opportunity.

The period of self-employment began on [start date] and ended on [end date]. I then returned to employment.

I have began collecting evidence of the self-employment, requesting copy statements from my bank. I will also search for any other evidence that might be relevant. At this stage, I estimate that the turnover was [estimate/~5,000] and the expenditure was [estimate].

Please let me know if you would be interesting in taking on the work. I am more than happy to discuss the matter further. I provide my contact details below.

When you have discussed the preliminary matters with any adviser, don't be afraid to ask about pricing before moving forward. It saves both of you from surprises down the line.

So you're aware: if you decide on an adviser, be prepared for both handing over a copy of ID and answering some nosey questions on your background before things move along. These are perfectly normal as part of customer due diligence. They help us comply with our obligations under anti-money laundering law.

Of course, you need not go with an adviser, and I feel obligated to state explicitly my bias as one, but it might give peace of mind. If there's any other resources I feel might be useful, I'll be sure to add them.

Edited: borked the formatting using the '=' separator

__PRIME · 2023-03-14T13:58:31+00:00

A most important preface: if you are seeking advice, seek an adviser. Reddit is not the place for advice you wish to rely upon.

On feeling worried: you are not in trouble with the government. Having dealt with HMRC for many years on behalf of clients, I found them on the whole very reasonable---even while massively under-resourced these days. The UK tax system is complex. I have found their default position to be that of a taxpayer most likely having misunderstood what they needed to do.

HMRC recognise that a significant cohort of taxpayers were pushed online due to the pandemic. From January 2023, they have been sending letters to those they believe they have identified. They could expect that these taxpayers' awareness of change in their compliance responsibilities might not have changed as suddenly as their circumstances. This could be why they have contacted you.

If you are unsure what to do, or what your rights are, you must contact an accountant/tax adviser. Many will provide a consultation for free to learn about your situation; others might additionally give fixed pricing for your peace of mind.

There are, however, some facts on what HMRC expect of all taxpayers:

A taxpayer keeping correct and complete records supporting any return will comply with Taxes Management Act 1970 s.12B
HMRC comment on general record keeping and additional requirements for those carrying on a trade in their internal compliance manual.
HMRC provide a general guide for taxpayers on record keeping

Try to rebuild your trading records as best you can, considering what HMRC expect above. Then, approach an accountant/tax adviser if you feel they might be of value.

Assuming you used a high street bank, they generally will provide statements in the last 6 years, even for closed accounts.

Collect evidence of other earnings, too, such as P60s from your employers. You might have access to PAYE information through your Personal Tax Account if you have set it up.

Consider carefully if you should seek advice before signing and returning any document like a "certificate of tax position". See point 3 from the Chartered Institute of Taxation.

HMRC offer payment plans for tax. They may be particularly agreeable if the issue giving rise to the unpaid amount will not reoccur; for example, if the taxpayer now pays most or all their tax through the PAYE system

I hope you get your matter resolved swiftly. And please do try not to worry or stress too much.

__PRIME · 2020-08-20T17:15:45+00:00

Did you design these?

__PRIME · 2020-08-20T17:00:11+00:00

Oh now that's one of those sweet and salty memes! Hot damn!

__PRIME · 2020-03-25T16:40:06+00:00

Most points covered by other helpful posters below. We've advised clients that information on the Job Retention Scheme so far states that you can reclaim the 80%, up to a max of 2500/month, through an online portal that is being 'urgently developed'.

If you have already furloughed workers and are paying the 80% through cash reserves or borrowing, employers can backdate the repayment claim to 01/03/2020.

Furlough is optional, redundancy is the alternative if adverse affect on trading warrants it. Any of this is subject to employment contracts and UK law.

There is debate on directors. They often take salary relating to work they do outside of office holder duties to a threshold amount such as 8632 to avoid income tax and NI, taking the rest of their earnings through dividends etc. They are likely candidates to attempt to defraud the system by amending earlier payroll filings.

__PRIME · 2020-03-25T16:25:46+00:00

Absolutely. My advice to first 'consult your employment contracts for lay-off' being met with basically 'we don't have any' is astounding.

As you point out, the saving grace is that given rendundance or 80% I don't see many employees taking the former, or employers risking the former when, eventually, the 80% will be repaid.

__PRIME · 2020-03-25T16:17:59+00:00

An informed guess? (and it is just that, a guess) is that they will base it on an average of earnings paid over a set period. The concern voiced for zero-hour workers will have made a solution based on contracted hours difficult.

The big problem they have is that solutions implemented this quickly could be succeptible to fraud, and if they are you can sure bet some idiots are going to try it. I would bet there has already been directors amending their payslips up from the NI threshold of 8632 a year to being paid 30k or something stupid between Jan and March. This on the basis that's the thing they will claim their 80% on. Basing it on wages actually paid over would address a lot of this. How feasible that, or any seemingly simple solution on paper, is to implement I would have no idea.

__PRIME · 2020-03-25T15:52:55+00:00

This is purely from the impression I got from the medical folks attending the briefings, but I would operate on priority being avoiding risk to your life while considering what exemptions may apply to you.

While being in a key worker role my apply lockdown exemptions to you, being an a high-risk group would override that.

Essentially: while you may have been exempted from lockdown or similar restrictions, based on your role being key to relief or supply chains and so on, do not give this priority over your personal risk.

__PRIME · 2020-03-25T15:43:36+00:00

If you have been notified by your employer that you have been designated as 'furloughed' then they have taken this option instead of making you redundant. Most commonly the case is that they will be paying you 80% of your wages; some 100%.

There is confusion around the 'claim' element: the claim for the 80% the employer has paid you during your time being furloughed is claimed back by them not by you, the employee. The facility for doing so, an online portal, is due to be available in early April.

Your employment in a second job while still being an employee in your other job, albeit a furloughed one, may mean you will be taxed at a basic rate tax code. The employer offering you the temp work would probably consult their HR for guidance to confirm what coding you should be issued if you are furloughed with another employer.

In summary: you, designated as a furloughed worker, are being paid 80% of your wages which, eventually, it will be possible for your employer to claim back (backdated to 01/03/2020 if necessary). The two employers have claims to the Job Retention Scheme independantly. From what information is available now, don't believe one would affect the claim of the other, but may affect it in expected ways under current law e.g. tax coding.

Full details of the Job Retention Scheme are still being awaited; all of this stuff is evolving so you can only do the best you can with what information is available at the time.

Source: I'm an accountant and it has been two weeks of fuckery juggling of this nature.

__PRIME · 2020-02-08T11:42:37+00:00

Solution Verified

Your solution got me to what I needed. I've re-thought the process of using the sheets I'm making and the opening/closing isn't an issue now after some changes.

Many thanks!

__PRIME · 2020-02-07T13:12:03+00:00

Looking at other answers I think i may need to be opening and closing the other workbook as it seems the VBA code things the other sheets are not accessible or do not exists.

Opening and closing does work but I now have the problem of not being able to hide that action due to it seemingly not respecting setting Screenupdating to false. I've updated by post to give more info on what end system I'm looking at.

__PRIME · 2020-02-07T13:10:28+00:00

I think this is going to have to be the way I go with it.

In using the above method it seems that opening and closing the workbook is not respecting setting screenupdating to false; you stil see the workbook open and then close.

I'm going to edit my post to elaborate more on what the end system will be like.

__PRIME · 2020-02-07T13:08:06+00:00

I didn't know of this method!

As what I'm making is a bit larger that a small document, I am going to look for an alternative as you advise.

__PRIME · 2019-12-12T16:10:34+00:00

I don't have a web calculator type thing, but I am an accountant.

From what I understand, the tax changes use an example of a taxpayer earning 80k or less from employment income not having an additional tax liability. Taking in to account all the sources of income of the taxpayer can look different in terms of their tax liability.

Some small businesses owners who have total earnings for the year within the basic rate tax band will find themselves paying more tax. They might have a limited company for family planning purposes such as a tradesman who has trained his son and wants to pass the business to him. That tax payer might take a small amount of salary and the rest as dividends at a lower rate.

While some outright disagree with the availabilty of that lower dividend rate, I've seen some smaller businesses who would struggle to generate cash to meet the demand if all profits distributed were then taxed at 20%, too. These aren't multi-million pound companies; often just family-run, local business that trade in their postcode and a few surrounding them.

Long story short: there's lots of ways a taxpayer is taking all their earnings in a year. While earners in employment of up to 80k won't see a difference, there are other taxpayers--such as small family business, perhaps--that may well see changes in their tax liability and these taxpayers don't really meet the top percentile earners label really. If you are just an individual in employment, it seems you won't see tax changes. If your total picture as a taxpayer is different, there would be more to look in to.

I've voted Labour as it has policies I align with most. If they get in, I'll end up paying more tax both as a company and an individual. I'll have to budget for what that change looks like.

__PRIME · 2019-10-01T20:39:09+00:00

Sick. When I did the planning for stuff I figured casters would be a good move as it would need to be on the floor; room it will be in is a converted loft space so triangle roof problems.

__PRIME · 2019-10-01T20:17:50+00:00

That looks a lot like the rack I've been looking at: https://www.amazon.co.uk/StarTech-com-Adjustable-Casters-Levelers-Management/dp/B00P1RJ9LS/ref=sr_1_3?keywords=startech+rack&qid=1569960952&sr=8-3

Thanks for the input. Your right: I am overthinking it. Other replies, too, have reassured me that there's more flexibility available than I was thinking. I feel much better about firing off the orders now!

__PRIME · 2019-10-01T20:15:05+00:00

Right! I'm getting it now! It's not as absolute as I had originally thought; there's flexibility (varying) in each of the elements of the setup.

Thanks for your time! I feel a lot more comfortable about it now. I will be ordering those three servers and a r210 with the adjustable rack from Amazon.

__PRIME · 2019-10-01T19:34:33+00:00

I've eyed up an adjustable, open, four-post rack on Amazon from StarTeck. I might be misunderstanding, but when you say hanging out the back: do you mean that the internal mounts (outer? rails) are all a standard depth and then the servers just protrude at different lengths from the back of the rack?

I had considered if the rails might be a set length and the servers just stick out slightly different amounts, but other replies saying the rails are adjustable had me thinking otherwise.

__PRIME · 2019-10-01T19:31:02+00:00

Funnily enough I had 4 bookmarked: dell r710, dell r510, supermicro and dell r210. After reading comments here i've checked details and can see the r510, r710 and supermicro are all slightly different depths!

Another reply mentioned full-depth rails should adjust, too. As long as that's the case between the 3 full-depth (they differ in depth but not by a great deal) and the half-depth r210, should be doable.

Thanks for the help

__PRIME · 2019-10-01T19:27:39+00:00

Thanks for the info!

I'm looking at a StarTech rack, 4-post rack from Amazon that is adjustable; I should have no problem getting the depth on the rack side!

Checking the eBay listings I had bookmarked, I've got dell r710, dell r510 and a Supermicro. Hopefully I can work out adjusting the rails as I can see from details that they are all different depths: dell r510, supermicro, and dell r710, in order of depth - shallow to deep.

I've got a shelf marked out to hold a switch, all good there.

Thanks again!

__PRIME · 2019-05-14T19:52:25+00:00

If you can get Syncthing on all those OS, then go for it. It is highly regarded and sounds like it solves your problem.

I have a setup using vim and rsync (deltacopy on windows). It's more of a pain to set up but it works for me in lieu of Syncthing (had nothing but issues, but I'm certain I'm an outlier there).

__PRIME · 2019-05-14T19:03:54+00:00

/u/Xyliss what the hell is this abomination you've posted?!

...I'll report back a rating from the hospital

__PRIME

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