Tax Return Amendment
Discussion
I have just discovered while doing my tax return that a substantial payment made to me was infact paid to me during 2002/3 and not 2003/4 as I thought it was (4 weeks before the end of the tax year). I was going to pay the tax on this next week but obviously it's 12 months late - can I ammend my last tax return and pay the tax and if so will I get fined? It was a genuine mistake on my part but I don't fancy a huge fine for a simple mistake.
Or should I just play dumb and pay the tax on it in my current return????
Also, will this mean I get 'investigated' as it does not look good does it!!!
Or should I just play dumb and pay the tax on it in my current return????
Also, will this mean I get 'investigated' as it does not look good does it!!!
The correct thing to do is submit a "repaired" 2002/03 tax return with an explanantion setting out what went wrong. You will have to work out the additional tax liabity for 2002/03 and pay that as quickly as possible to mitigate interest and possible penalties. Tax liabilities for 2002/03 should have been cleared in full by 31 January 2004. As this liability was still outstanding at 29 February 2004, an automatic 5% surcharge will also be levied.
Don't forget that the higher liability for 2002/03 could have a knock on effect on 2003/04 in that it is possible that the 2003/04 Payments on Account needed to be higher. If this is the case, there would be interest running on the underpoaid 2003/04 Payments on Account as well.
Are you absolutely sure that the income needed to be returned on the 2002/03 tax return?
Not a nice situation.
Don't forget that the higher liability for 2002/03 could have a knock on effect on 2003/04 in that it is possible that the 2003/04 Payments on Account needed to be higher. If this is the case, there would be interest running on the underpoaid 2003/04 Payments on Account as well.
Are you absolutely sure that the income needed to be returned on the 2002/03 tax return?
Not a nice situation.
Paid in March 2002 - that means it fell within the 2001/02 tax return period. It's even more out of date than I imagined.
Was it for work done before 5 April 2002? It wasn't a Payment in Advance for work actually carried out in the tax year 5 April 2003?
Was it actually for work done. It wasn't a Capital Gain by any chance?
Was it for work done before 5 April 2002? It wasn't a Payment in Advance for work actually carried out in the tax year 5 April 2003?
Was it actually for work done. It wasn't a Capital Gain by any chance?
Sounds like you had some "casual" one-off self employment income. Normally, you would have to notify the Inland Revenue within three months of commencing self-employment that you were receiving self employed income. This is mainly so they can start asking you to pay the Class 2 NI contributions on a monthly or quarterly basis.
If your total Self Employed income was below the 2002/03 Small Earnings Exzemption (£4,025) then nothing is due on that score anyway. You would also not be liable to Class 4 NI.
There is a box on the Self Assessment tax return for "Other Income" and often this is the best place to insert these odd ball amounts.
If your total Self Employed income was below the 2002/03 Small Earnings Exzemption (£4,025) then nothing is due on that score anyway. You would also not be liable to Class 4 NI.
There is a box on the Self Assessment tax return for "Other Income" and often this is the best place to insert these odd ball amounts.
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