HMRC gathers and uses data from a plethora of sources such as banks, land registries and Companies House in order to cross check any information reported on your self assessment tax return. The run-up to a Self Assessment tax return deadline can be stressful, which is why it pays to get it done as early as possible.
If HMRC happen to find a discrepancy between the third party data and your 2018-19 tax return you may receive a letter asking you to review your return. Unfortunately, that letter will not detail exactly what is missing from the return as it is a standard text automatically generated by the computer and sent to a large group of taxpayers. This approach saves HMRC time and puts the onus on you to investigate the issue and take any action required. That is where we come in.
The complexity of the self assessment process does not grant anyone the liberty to ignore it, as it remains one of the most important tax documents you have to fill out as a business owner. The burden is lessened when you are able to address your self assessment designs with an expert and also seek quality advice. At Nordens, we keep the appropriate records of your employment income, invoices and business expenses, return on investments, capital gains, income from abroad, interests and rental income. Our reputable years of serving our clients through the effort of our highly-skilled chartered accountants cannot be compared with any other. Find out more about our self assessment services here.
The issues HMRC is currently writing to taxpayers about include:
- discrepancies with employer reported pay and benefits
- disposal of residential property which was not the taxpayer’s main home
- disposal of property described as ‘other assets’
- investment income from financial institutions
- deferred consideration on sale of private company shares
- income of directors who control their own companies
- tax relief claimed under double taxation agreements
- foreign tax relief claimed against employment income
If you receive a letter stating an inconsistency in your paperwork, please contact us right away on 02085300720 or email email@example.com The HMRC letter does not constitute a formal opening of a tax investigation but it does require action as HMRC may follow up if the tax return is not amended.