How long before the tax man visits?

sarahlouise210

Shep wrote:

Open cases involving a previously declared shortfall in the payment of tax are a different matter. Due to criticism of the HMRC by the National Audit Office regarding it's failure to collect unpaid tax assessments the HMRC has been going through any open cases it can find - some going back over 20 years. You have been warned

This is extremely unlikely! There is no legal obligation to keep any paperwork older than 6 years so no information could be provided by either someone under enquiry or previous employers. They would simply not have access to information 20 years old and to be honest if this was to happen it would be isolated in a case that involved serious money. HMRC struggle with the 6 years - to go back 20 yeras would be too costly unless their was serious fraud and the prospects of the tax being collected were good. Although there may be the slightest possibility of enquiries over 6 years old - it is so remote that there arenot mayny people who should be in the slightest concerned about this

Arohemq

Perhaps I'm slightly off-topic but I'm wondering about the 6 year statute of limitations...

I arrived in the UK in June 1999 and began work in August. I have paid income tax as a PAYE since. [Side note: if it matters, I already had an NIS number as I had worked in the UK before in 1993 for 6 months]
Would I be able to request that my income taxes be rechecked for possible refunds seeing as I only worked part of the 1999/2000 tax year?
I wonder because I was able to claim back substantial refunds in Oct 2004 for the years 2001/'02 & 2002/'03 and I also received a 6 month refund for the 2003/'04 tax year. (There had been an error in terms of a car benefit which I no longer was receiving & I had neglected to inform them of this change. I had changed jobs! If you think a P45 is enough, it isn't).

When would the statute of limitations apply for the tax year 1999/'00? i.e. Does it run out in April 2006?
Thanks!

deemy2004

Becky wrote:

After submitting a self-assessment tax form, how long after can the tax man choose to visit you (if they are intending to do so)? :rolleyes:

I submitted my 2004/2005 form a few weeks ago and just wondered!

Anytime... some say 6 years ? I know someone that they went back over 10 years.. Where there is no paperwork or explanation they will just estimate the tax owed for those years.

isasmurf

Arohemq wrote:

Perhaps I'm slightly off-topic but I'm wondering about the 6 year statute of limitations...

I arrived in the UK in June 1999 and began work in August. I have paid income tax as a PAYE since. [Side note: if it matters, I already had an NIS number as I had worked in the UK before in 1993 for 6 months]
Would I be able to request that my income taxes be rechecked for possible refunds seeing as I only worked part of the 1999/2000 tax year?

[snip]

When would the statute of limitations apply for the tax year 1999/'00? i.e. Does it run out in April 2006?
Thanks!

Hurry!!! You actually only have 5 years and 10 months from the end of the tax year to claim tax back. i.e. to claim tax back for 1999/2000 you must claim before 31st January 2006.

Cook_County

Just to add that from what you have said it sounds as if you are not domiciled within the UK and may not have been ordinarily resident in the UK until as late as April 2003. These rules may help you save even more tax depending on what kinds of income you had and whether you had any overseas workdays.

Arohemq

isasmurf wrote:

Hurry!!! You actually only have 5 years and 10 months from the end of the tax year to claim tax back. i.e. to claim tax back for 1999/2000 you must claim before 31st January 2006.

Thanks ;-)
I'm just dusting off the ol' P60 plus other bits & bobs from my attic, fill in a form, hand it in; and then wait up to 6 weeks (so I hope) for a decision.

Cook_County wrote:

Just to add that from what you have said it sounds as if you are not domiciled within the UK and may not have been ordinarily resident in the UK until as late as April 2003. These rules may help you save even more tax depending on what kinds of income you had and whether you had any overseas workdays.

Not entirely sure how "domiciled" I was/am....?
I'm an EU citizen and despite living here permanently since '99 I haven't bothered to be an officially registered resident here although I am on the local electoral roll [for local elections]; is that what you mean?

I have always been an employee since my arrival in 1999 (no self-contracting jobs, what can I say: I'm a sheep!) and I've never had any overseas workdays at all.

I note you mention April 2003. That's just under 4 years after my arrival. Is that a significant time period? I know that I qualify for naturalisation after 4 years plus 1 year official registered residency but what does that mean for tax purposes?

Cook_County

Unless you have reached a decision to abandon your domicile of origin and remain in the UK for the remainder of your days then you will remain domiciled in your country of origin.

If you have any income or gains outside of the UK (eg bank interest in your home country) then this would be reportable in full on the UK tax return unless you are not domiciled within the UK and you complete the 'non-residence etc' pages.

You may have been not ordinarily resident when you first arrived if you initially intended to remain for less than 3 years. This would have changed at the latest on the start of the 4th year following your arrival (ie April 2003).

Tax for non-UK domiciliaries is brilliant in terms of saving money (what this website is about after all!)

Al_Mac

Having been investigated for my April 2004 return.

I was told return is April 2004.

Return needs to be in end Jan 2005.

They could investigate up until end Jan 2006.

This for individuals only.

My experience is that if you go to a country house, and gift aid the entrance fee, don't bother trying to claim it. Receipt isn't proof.

Major charities, National Trust, didn't respond to my request. Bank statement sufficed.

Local scout secretary claimed I must have been caught doing something illegal.:mad:

What a fun time.

:beer:

Arohemq

Cook_County wrote:

Unless you have reached a decision to abandon your domicile of origin and remain in the UK for the remainder of your days then you will remain domiciled in your country of origin.

er, no, not yet Ok, now for some confusion:

In fact I left my "home/birth country" [non-EU] 20 years ago for my "mother-country" [the EU one, parents'] and I have property in my "birth country" and a bank account with some savings [not substancial] in my "mother-country" but chances are that I will probably move off to another EU country (my fiancée's home country) within 2/3 years. But I soon intend purchasing property here in the UK and possibly in my "mother-country".
For tax reasons I'm definitly not domiciled in my "birth country" (which I had returned to after a long hiatus and stayed again for a mere 4 years but purchasing a home nonetheless...sigh, sorry, my migrations do indeed become tedious and confusing )

Cook_County wrote:

Tax for non-UK domiciliaries is brilliant in terms of saving money (what this website is about after all!)

I'm not sure I could claim this bearing in mind my rather odd arrangement in 2 other countries. I suppose I could claim domicile in my "mother-country" where I know I have not updated my tax particulars (never earned enough to be taxed there...mainly a student in my 8 years there).

I'm also not entirely sure about reporting any income I obtain in my birth country from rent monies on a UK tax return (it covers the mortgage & expenses and as a provisional non-domiciled tax-payer there, I don't earn enough profits to be taxed) . No money from my birth country ever entered the UK so I don't see why I would have to mention this...?

In the 2 self-assesments I have completed [01/02 & 02/03] and from which I obtained refunds, I don't recall mentioning being domiciled overseas and resident here. I thought it was implied I was resident here.

And, er, have I broken any laws?

DavidT

It perhaps should be understood there are two type of general Inland Revenue enquiry in self-assessment.

These are aspect enquiries and full enquires.

An aspect enquiry will usually consist of a leter from the revenue asking some specific questions about particular entreis on your tax return and are usually dealt with by correspondence no visit required.

If you get a full enquiry - and you can normally tell if it is because they will also ask you to send in all your business books and records, then it is usual for the Inspector to request a meeting which can be at your business premises, at your accountants or at the Revenue office. You do have the option to decline a meeting which in practice means your enquiry will probably be very drawn out and time consuming. Meetings are in fact quite common.