Readers’ forum: Chargeable to tax

A person has come to me who started in business three or four years ago but he has not told the Revenue and consequently has not submitted any tax returns.

His total income each year has been less than his personal allowance and therefore he has not had a tax liability.

TMA 1970 s 7 states that you have to notify where a person is chargeable to tax. This is confirmed in paragraph SALF210 of the Revenue manuals where it says: ‘Any person who has not been required to complete a tax return but who nonetheless has profits or chargeable gains on which tax is due must notify an officer of the board that they are chargeable to tax.’ So by inference no notification is due if there is no tax liability.

However there is another section on the GOV.UK...