Tax return error

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    Tax return error

    Hi all

    I keep a spreadsheet to keep track of my expenses/income throughout the tax year.

    I just noticed that I made an error on my most recent tax return - I had accidentally recorded an expense (service charge) as income. This means not only did I fail to get tax relief on a tax-deductible expense, but I also overstated the income from a property.

    What do I do now? Can I make adjustments myself on next year's tax return (e.g. adding the expense to this year's expenses and deducting it from this year's property income)?

    Thanks in advance.

    #2
    I believe you just need to send in a correct version of this year's tax return.

    Comment


      #3
      If the amount is not significant, you could adjust next year's Tax Return - HMRC are not losing any tax.

      Comment


        #4
        The amount is about £1000 - I wouldn't consider that especially significant, but not sure what HMRC's view would be. Would be much easier just to adjust next year's, if possible.

        Thank you all for your help.

        Comment


          #5
          Laurasplog,


          http://www.hmrc.gov.uk/sa/correct-repay.htm

          Comment


            #6
            Done - simple really, didn't realise you could amend the online application once it was submitted.

            It's very odd this year though - I have always paid taxes in arrears (e.g. after submitting my 2011-2012 tax return, I would pay at that point), but this year it's asked me to pay in advance for "anticipated" taxes for next year too. Expensive year, especially as I spent all of last year on maternity leave!

            Comment


              #7
              Originally posted by Laurasplog View Post
              It's very odd this year though - I have always paid taxes in arrears (e.g. after submitting my 2011-2012 tax return, I would pay at that point), but this year it's asked me to pay in advance for "anticipated" taxes for next year too. Expensive year, especially as I spent all of last year on maternity leave!
              It's been that way for a good few years now actually. Bloody outrageous if you ask me.

              It's possible to reduce the 'anticipated' amount that they ask for if you expect to be earning less than HMRC are assuming. I did that once when I was anticipating a change of circumstances and lower income the following year; however ultimately it transpired that my income stayed about the same, with the result that I had to pay a hefty rate of interest on the discrepancy. On tax for anticipated earnings! <spit>.

              Comment


                #8
                Originally posted by Laurasplog View Post
                Done - simple really, didn't realise you could amend the online application once it was submitted.

                It's very odd this year though - I have always paid taxes in arrears (e.g. after submitting my 2011-2012 tax return, I would pay at that point), but this year it's asked me to pay in advance for "anticipated" taxes for next year too. Expensive year, especially as I spent all of last year on maternity leave!
                The taxman does not given maternity leave to tax payers.

                Comment


                  #9
                  Yes, I know and appreciate that re: maternity leave. I have a "proper" job as well as property investment and took 6 unpaid months as part of my maternity leave, so it was an extra kick in the teeth to be asked for next year's tax payment on top of this year's.

                  I guess they can't do this more than one year though (ask for two lots of tax) - they can't ask me for tax retrospectively next year PLUS in advance again, as I will have paid the tax now that they would normally claim retrospectively.

                  Comment


                    #10
                    If you continue to "qualify" for this regime, you will need to pay the Income Tax in 2 instalments (based on the tax paid in the previous year) plus a balancing payment/refund on 31 January. Unfortunately, 31 January is also the first instalment for the next year.

                    Comment


                      #11
                      Interesting re: "qualifying" for the regime - out of interest, what does that involve?

                      Comment


                        #12
                        See below :

                        http://www.hmrc.gov.uk/manuals/salfmanual/salf303.htm

                        Comment

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