Self assessment completed incorrectly

FrustratedMan

I have just realised that I have messed up my last 2 self assessment tax returns. In a nutshell, I am a landlord and have claimed the capital element of my mortgage as well as the interest as an allowable expense. Can someone please advise how best to inform HMRC and what penalties I could face?

I recalculated what my payment should have been and it looks like I have underpaid by £450 for the 2 years. Could I receive a criminal record? Are HMRC likely to delve deeper into the matter given that I work in finance, albeit not as a tax specialist? I really hope not as this was an honest mistake and from what I have read plenty of accountants make greater mistakes on their clients tax returns.

Any light anyone can shed would be very much appreciated

Many thanks

purdyoaten

Please stop worrying unduly.

https://www.gov.uk/self-assessment-tax-returns/corrections

You will have to pay interest but it is not penal. Penalties may arise but, again, unlikely to seriously affect your wealth.

The 2012/13 tax return is still 'in date' for amendment on line and the instructions are on the link. Amend the returns and await the bill - I would be surprised if, after everything, it exceeds £650.

Criminal record? I once had a client who was investigated by Special office and under Hansard. He was given a six month suspended sentence. it was, however, his third offence and the amount unpaid was around 1.6 million. You have a bit to go!

Rest easy!

TheCyclingProgrammer

You made an honest mistake, discovered that mistake and now you intend to disclose your error to HMRC by submitting amendments.

HMRC issue penalties on a sliding scale depending on the scale of the error, whether it was deliberate or not etc.

As purdyoaten says, a fine would be harsh and unlikely. A small one a most. I think you'll just owe the extra tax plus interest.

Give HMRC a ring and explain. HMRC do take prompt disclosure into account.

FrustratedMan

Thank you both

I did think I was perhaps being a bit melodramatic and a small penalty is fair enough. I suppose I am more concerned about this having a negative impact on my career given that I work in finance.

The error is actually going back as far as 2011/12 tax year. It was after I read an article in the paper detailing what expenses were allowable that it donned on me what I had done

purdyoaten

FrustratedMan wrote: »

Thank you both

I did think I was perhaps being a bit melodramatic and a small penalty is fair enough. I suppose I am more concerned about this having a negative impact on my career given that I work in finance.

The error is actually going back as far as 2011/12 tax year. It was after I read an article in the paper detailing what expenses were allowable that it donned on me what I had done

Yes - I was aware of that. You can amend the second of the returns, for 2012/13, online which will result in a debit to your Self assessment account. When it appears on the account after a day or so, you can simply pay it with the interest already added - that could be the end of that. The 2011/12 year should be amended manually - see my previous link.

42198

HMRC charge penalties based on your behaviours. If you tell them everything before they ask, and it's not deliberate, the penalty would be between 0% and 30%. Providing you tell them everything, give them any info they require and help them you'll get the lowest end of the scale - that is, a 0% penalty.

purdyoaten

42198 wrote: »

HMRC charge penalties based on your behaviours. If you tell them everything before they ask, and it's not deliberate, the penalty would be between 0% and 30%. Providing you tell them everything, give them any info they require and help them you'll get the lowest end of the scale - that is, a 0% penalty.

I realise that you are a first time poster - but that is poor advice!