I put something in the wrong column - even though I declared it, they did not see the error - which should have stood out like a sore thumb to the trained eye. Anyway they should have taxed me on £20,000 but they only taxed me on £12,000. I thought it was odd at the time but because I didn't realise it was in the wrong column I didn't query it. I honestly have only just noticed the error, as I said it was my very first year of being self employed. I only realised it yesterday when I did this year's return - correctly. However they have written me a letter and I have to produce all my accounts, they are definitely going to see it, I wasn't trying to hide anything. Will I have to find money I haven't got to pay or will they admit they made an error too? UK QUESTION. Somebody said they hit hard on the one person who is self employed and let the big people get away with things.
2007-09-24 19:08:07 · 7 answers · asked by georgeygirl 5 in Business & Finance ➔ Taxes ➔ United Kingdom
Should I just leave it up to them or tell them that I have just noticed it, will they be suspicious, is it best to keep quiet?
2007-09-24 19:09:38 · update #1
The fact that they are asking you to produce all your accounts indicates to me that you are the subject of a formal enquiry - does the letter say this? It looks as if your error is going to be discovered (and they can go back 6 yrs or more in this case). The best thing would be for you to own up if challenged and pay the tax - or make an installment arrangement if you can't pay.
The info that you put on your tax return is entered on to HMRC's computer system by very junior staff who know little or nothing about tax. As you completed the form incorrectly, I'm afraid it's your error.The onus is on you to complete your return correctly - it always has been, but under Self Assessment, it's even more important.
HMRC does not hit on the little man - everyone is treated the same, but an error on the part of the taxpayer makes an easy win for target-driven Inspectors.
2007-09-24 20:55:55 · answer #1 · answered by fengirl2 7 · 0⤊ 0⤋
well you have 2 choices, either own up now or act surprised when its discovered and own up to making a mistake (but dont say you spotted it)
the problem with the Inland Revenue is that they have monkeys loading the info onto their computers and even if you make notes on the Return about certain items, they wont read the notes at all. In my experience, they are very incompetant in this area. however, when its their busy period, mistakes do happen and they rush to get the work done so alot of the times they do not spot things are not right.
at the end of the day, self assessment is exactly what it says on the tin. the revenue are not really there to correct you, but they will investigate or enquire into a return as and when they feel like it.
now as they are going to be looking at all your stuff, I would suggest you hire an accountant. the Inland Revenue can only ask for certain things and are not allowed to ask for some things but they will try it on with you and you will comply with their demands because you do not know any different.
an accountant can advise you how to deal with the enquiry and they can actually deal with it for you so all you need to worry about is how to pay the extra tax due. sure it may cost a few hundred pounds, but at least you know what is going on, is right.
as for the extra tax due, it will become payable, they will charge interest and surcharges just like they would for a company, even it it was a mistake. whats due is due in their eyes so there isnt any way out of it im afraid.
they will however allow you to pay over a number of months if you will stuggle to pay it all in one go.
2007-09-25 05:27:29 · answer #2 · answered by Paul S 5 · 0⤊ 0⤋
I think you will find the answer in the Declaration you make on the back of the form... specifically that YOU are responsible for correctly filling in the form (not them).
If you admit up front that you have made an honest mistake they will give you time to pay .. if THEY find the mistake they might apply Penalty Charges ...
Best bet ? Contact the Tax Office, tell them your have found an error in your 05/06 return and ask their advise ..
2007-09-25 02:19:53 · answer #3 · answered by Steve B 7 · 1⤊ 0⤋
Don't keep quiet, just contact them and tell them what you've told us, you've just noticed the error now you're looking at this year's return.
The revenue can be quite understanding over what is your error (you sign a declaration that what you submit is complete & accurate etc) and they'll almost certainly come to some arrangement with you over paying any shortfall.
2007-09-25 03:25:47 · answer #4 · answered by champer 7 · 0⤊ 0⤋
I did the same thing one year, as soon as I noticed I contacted the tax office and we worked it out between us.
The tax system may be a b*strd, but the people who work there are just people and they want to help.
Give them a ring, and I hope you get a nice person to help you.
2007-09-25 03:27:42 · answer #5 · answered by whyisiticalled 1 · 0⤊ 0⤋
Don't worry, they should have spotted the mistake as well if it was an obvious one, if you have to pay extra tax that you are struggling to pay they will allow a suitable repayment plan.
Ken
2007-09-25 02:19:12 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Pretend you didn't notice it but be prepared for them to make you pay for it. It was your first time, how are you supposed to know what you are doing?
2007-09-25 02:17:58 · answer #7 · answered by ChocLover 7 · 0⤊ 0⤋