Starting an electronics business

[Faringdon]

Hi,
Has anyone left work to try and start up an electronics business?
....But you never got payed anything, and never made any money, and never claimed any benefits.....and then Inland revenue contact you and demand that you pay £1112.94 Tax for the 2021-2022 year?

I left work on 28th feb 2022, have not earned any money since then, have not owned a business since then, have not claimed any benefits since then, have always only ever worked in one job at a time bfore 28/02/2022, and was always on PAYE...ie my tax was always worked out and payed for me by whichever company i worked at.

Now i have a Tax demand from Inland Revenue for £1112.94
They say i can go on HMRC twitter for advice , but i cant sign into it because i dont know my username.
They say i can phone them, but they dont pick up.
They say i can fill in what i am doing on my "Personal Tax Account"...but there is nowhere on there for you to fill any such thing in.

Has anyone ever been in this situation, and knows how to sort it?

[Bud]

What do you mean 2021-2022? Is that perhaps for you last employer's fiscal year that starts/ends other that Jan 1st?

[themadhippy]

Is that perhaps for you last employer's fiscal year that starts/ends other that Jan 1st?

normal uk tax year is 6 april-5 april .so it looks like the tax man has questimated your earnings from 28/02/22 - 5 april and recons thats  wot you owe.thinks  you need to sign up for self assessment https://www.gov.uk/register-for-self-assessment  and get a return filled in

[johnboxall]

Has anyone ever been in this situation, and knows how to sort it?

Engage an accountant.

[pcprogrammer]

Has anyone ever been in this situation, and knows how to sort it?

Engage an accountant.

Which is not free of charge.

Here in France we can just go to the nearest tax office and talk to someone. Need some patience to await your turn, but they are there to help with tax problems.

Don't know about how it is in the UK, but can imagine a similar setup. Just search online for the nearest tax office and see if they are open to the public. Might even be that you can make an appointment online.

Make sure you have some proof that you did not earn taxable income in the period they are taxing you for.

[Halcyon]

They say i can go on HMRC twitter for advice , but i cant sign into it because i dont know my username.

I would suggest that if this kind of problem has you stumped, I would advise that you leave things like taxation and accounting to the professionals, rather than trying to "sort it" yourself. Running any business has risks and many new businesses fail or don't make money for some time. Starting and owning a business is not something one should go into light-heatedly. There is lots of homework you need to do and if you don't know, engage the services of someone who does know.

Typically, things like accountants are tax deductible business expenses, so that might be a consideration for you.

[arjen]

First, I'd recommend contacting HMRC directly and persistently, as they can sometimes take a while to respond. You might want to try calling during off-peak hours or sending them a detailed letter explaining your situation. Also, it could be helpful to reach out to a tax advisor or accountant who can assist you in clarifying and resolving the issue with the Inland Revenue.