When we came back from our vacation in the Philippines, I was going through the pile of letters waiting for us at home. One envelope from HMRC caught my eye—at first, I thought it was just the usual tax update. But when I opened it, my heart dropped.
It was a notice for late filing of self-assessment… covering the last 4 years I’ve been in the UK. On top of that, it showed a penalty of £1,800. Yes, £1,800! Imagine the shock.
So, of course, I panicked a bit. Right away, I logged in to my HMRC account, tried to sort things out, filed the self-assessment, and even paid the amount they said I owed—just to avoid any more trouble.
But here’s the kicker: a month later, I got another letter saying my penalty had now gone up to £4,000. 🤯 At that point, I knew I had to pick up the phone and call HMRC.
What Exactly is a Self-Assessment? 🤔
In the UK, most people don’t need to worry about filing taxes because it’s automatically handled through PAYE (Pay As You Earn) by their employer. But some people do need to file a Self-Assessment Tax Return—basically, it’s a way of telling HMRC about your income and expenses that aren’t covered by PAYE.
Think of it like this: if your money only comes from your salary (and your payslip already shows all the tax and NI deductions), you probably don’t need to file.
But you do need to file if:
✅ You’re self-employed or have a side hustle.
✅ You earn income from property rentals.
✅ You have savings or investment income above a certain amount.
✅ You or your partner claim Child Benefit and your income is above £50k.
✅ HMRC specifically sends you a notice to file.
If you’re unsure, HMRC has an online tool called “Check if you need to send a Self Assessment tax return”—super useful if you don’t want any nasty surprises like I did.
The Call That Saved Me Thousands
When I finally got through to HMRC support, I explained my case:
- I only have a PAYE job (no side hustle, no property, no investments).
- From what I understood, I shouldn’t have to file a self-assessment at all.
The first agent was helpful but passed me on to technical support. That’s when a kind lady confirmed it—I shouldn’t have received a notice to file self-assessment in the first place. She even advised me to appeal the penalties for the last 4 years and explain everything in writing.
So that’s what I did. I wrote my appeal, submitted it, and prayed hard that HMRC would see my point.
The Result 🎉
After about three weeks, I received another letter—this time, it was good news. My appeal was successful! That meant not only would the penalties be cancelled, but the payments I had already made would be refunded.
So yes, may pang-gastos na ulit si Tatay. 😂
Final Thoughts
That £4,000 penalty scare taught me a big lesson: not all letters from HMRC mean you owe them money. Sometimes, it’s just a system error or miscommunication.
And the best part? Yung binayad ko na more than £1,000 — babalik din sa akin. 🙌
Mas masarap pa kaysa sa cashback, kasi akala mo gastos na, pero refund pala.
So if you’re in the UK like me, don’t just blindly pay. Check first, ask questions, and don’t be afraid to appeal.
Adulting tip of the week: open your mails, and face them head-on. Kasi minsan, the problem isn’t as big as you think. 😉
-#DadBuhay
DadBuhay 
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