Anyone work for HMRC (tax return question)

[cosmicgirl]

As above, I've messed this up! x

 

[Nat26]

What you having problems with? I don't work for HMRC but I'm an Accountant....There helpline is really good if you need to contact them xx

 

[cosmicgirl]

I forgot to tick the student loan box on my sa. It was the first and only one I've ever done, it was for a small amount of waitressing done over Christmas to bump up my normal full time earnings.
Is this a massive error? What will happen?? x

 

[Nat26]

Oh right, I definitely would give their helpline a call and just let them know - I would imagine lots of people forget little things, they really are helpful. Hope you get it sorted xx

 

[cosmicgirl]

Thanks Hun, I'm really worried because I only discovered this error when I got a scary letter from the compliance team. I'm really frightened they might give me a big penalty or something.
It really was an honest mistake, I don't know what they will do x

 

[Nat26]

Lots of people must make these mistakes, I haven't dealt much with HMRC but its sounds a bit harsh if they were going to impose a penalty. As far as I'm aware you are able to submit changes - someone who submits these regularly might know?? I know they definitely impose penalties if you fail to pay your tax or submit your self assessment on time but if your sa was for the 2011/12 tax year then you have completed it early as it wouldn't be due until January xx

 

[cosmicgirl]

It was for 09/10 year and I've paid the bill. I don't think I can make changes to it now can I? God this is giving me sleepless nights x

 

[Naomi D]

HMRC are within their rights to penalise you for an incorrect return, but with your full cooperation they are unlikely to.

Without knowing your full situation I cannot guarantee any advice I give, so please dont rely on it, but if I were in your position I would do the following:

Based on a return for the 2010/11 tax year you have 12 months to submit an amended return, so that is what you now have to do.

As has been said already, phone HMRC's SA helpline. Say that it was an honest mistake, that you are pregnant, and that its been a very busy/difficult time for you lately etc, and that is why you made a mistake.

It may be the case that you will have to pay some extra student loan back, and this is why the error was flagged up on their system (they share records with the student loan company). If you cant work this amount out yourself, you will need to speak to HMRC about it and let them know - they can help.

Let HMRC know that you fully intend to pay any tax/student loan due and that you did not intent to defraud the system, and they should be fine.

Generally in cases where there is full compliance, and it is a genuine error, they are unlikely to penalise you. If for some reason they do issue a penalty, it can be a % of any tax due, so say 5% for a minor misdemeanour or 100% for a very serious one.

Whatever happens - dont worry about it, and if you arent happy with their determination the appeal system is very good, and worth doing, as many appeals are won.

 

[Naomi D]

Ah, we posted at the same time.

If it is for the 2009/10 tax year, you are unable to file an amended return.

You must give HMRC your full cooperation, as this will only benefit you in the long run. The letter from them may have given you an amount of tax/studen loan due for the 09/10 tax year, and there may be an automatic penalty grading of say 5-10% on top. Interest is also payable, but as the base rate has been so low, this will probably be negligible.

You have 2 options. You can pay the extra tax due, along with any possible penalty and that will be an end to it.

You can pay the tax due, and appeal any possible penalty amount. Bear in mind though, that at an appeal the penalty could go up as well as down.

If the amount due is only small it may well be worth just paying it. If it is a large sum you may want to think about getting some adice from a tax specialist.

Hope that helps you a bit. If you phone them, they are generally very nice, and should be able to help.

 

[cosmicgirl]

Thank you so much for your advice, I've been worried sick.
It really was a genuine mistake, I'm going to have to bite the bullet and call them, dreading it x

 

[cosmicgirl]

Spoke to them, they are going to send out a revised something or other with some fact sheets about my rights??
Obviously I told them I would pay what was required.
She said she has to consider a penalty as an incorrect return has gone in.
Now I'm shitting my pants x

 

[Naomi D]

The penalty will be graded according to the severity of the case - I would be surprised if yours was anything more than 10% of the tax due. Honestly, dont worry about it, there may be a small extra cost to you, but it shouldnt be serious.

 

[cosmicgirl]

Thank you so much, it's so scary. It's a minefield and I was so scared to call them. Your advice has been such a relief, thank you so much.
I was so upset last week and was telling my boss, I got so stressed, she just laughed and said "omg your hardly Jeffrey Archer!", I was thinking I'd be sent to prison! x

 

[Nat26]

Glad you've phoned them, hopefully they will see it is clearly a mistake. I can't imagine the penalty being that harsh as Naomi says ....And 09/10 tax year...I hate the way they are always so behind in investigating things! Good luck anyway, hope it all gets sorted xx

 

[cosmicgirl]

Thanks, I hope it will be ok x

 

[Naomi D]

No probs hun, HMRC sound a lot scarier than they actually are sometimes. I find if you're nice to them and explain that it was a mistake and that you'll cooperate fully, they are very good. In the end all they want to do is settle the matter with the least amount of work - same as us accountants!