HMRC Checking Time Limits

KID77

Hello

We have recently submitted some mileage relief claims using self assessment forms.

Today we received notification for the year ending 2012 and the payment has been made however the document in the post states this calculation and payment is based on the figures we have provided and has not been checked. This could be checked at a later date and if found to be incorrect then should be returned.

My question before we ring them is do HMRC have a time frame in which they have to check SA's? It just seems ridiculous to pay us a sum of money which could be claimed incorrectly and they don't check it....

We have the funds for the 4 applicable years but don't want to spend it incase there is an issue with it.

Any advice is appreciated.

Thank you
KID

Darksparkle

It would be impossible to check every single self assessment submitted. The receive something around 10 million per year.

http://www.hmrc.gov.uk/manuals/chmanual/CH56100.htm

KID77

Thank you for your quick reply.

Reading your link, I think we fall into Item 9 which means 4 years they have to investigate. From a quick google just after my original post, I found this page which indicated 12 months so not sure what's right????

http://www.hmrc.gov.uk/manuals/salfmanual/salf403.htm

Darksparkle

KID77 wrote: »

Thank you for your quick reply.

Reading your link, I think we fall into Item 9 which means 4 years they have to investigate. From a quick google just after my original post, I found this page which indicated 12 months so not sure what's right????

http://www.hmrc.gov.uk/manuals/salfmanual/salf403.htm

Both are technically correct. They have different time limits for different checks.

A normal enquiry is a year if filed on time. They get slightly longer if the return isn't made on time.

However they have discovery assessments that allow them to go back further in some circumstances - http://www.hmrc.gov.uk/manuals/salfmanual/SALF409.htm

KID77

Well if I understand it correctly, as long as the information I have submitted is correct and I am not holding anything back, they have 12 months to check.

We only recently became aware that we could claim mileage relief which is why i am slightly nervous but it was HMRC who told us we could claim in the first place when they done a compliance check last year on tax year ending 2014. So we have since claimed the other years.

Thanks for taking time to reply.

Darksparkle

KID77 wrote: »

Well if I understand it correctly, as long as the information I have submitted is correct and I am not holding anything back, they have 12 months to check.

We only recently became aware that we could claim mileage relief which is why i am slightly nervous but it was HMRC who told us we could claim in the first place when they done a compliance check last year on tax year ending 2014. So we have since claimed the other years.

Thanks for taking time to reply.

They also aren't going to waste much time opening an enquiry if they don't expect much from it. Eg if you over claimed by £5 it's unlikely they'll do a check (not impossible because they have to do some mandatory checks, but not likely).

But if youve claimed for say £5000 then it's more likely to get checked.

[Deleted User]

HMRC will check if their system throws up rather obvious errors or discrepancies. (one obvious error (HMRC words) I came across recently was a claim to child benefit which had not been declared.

As mentioned it would be impossible for HMRC to check every return. I have pointed out before that many filers seem to think that all is well if they get to the end of the filing process. For example, the number of posters on here who claim loan repayments against their rental profits is unbelievable. The system will process the return and churn out a tax liability. Doesn't mean it's correct or the end of the story though!

KID77

Thanks for the reply Purdy.

I rung them and she said its standard wording ont statement but based on the information in the return she doesn't see any problems.

By the end of April it will be 5 years of mileage relief that we have claimed, business miles over this period would have been around 100k so it is quite alot of money. Think we need to keep it to one side for at least a year. I am hoping that the fact they checked the return for year ending 2014 and they highlighted that we had overpaid means that these mileage relief claims shouldn't be any different and stand out as needing checked. Or in fact if they did check it then at least I would know the money is 100% ours :-)

[Deleted User]

KID77 wrote: »

Thanks for the reply Purdy.

I rung them and she said its standard wording ont statement but based on the information in the return she doesn't see any problems.

By the end of April it will be 5 years of mileage relief that we have claimed, business miles over this period would have been around 100k so it is quite alot of money. Think we need to keep it to one side for at least a year. I am hoping that the fact they checked the return for year ending 2014 and they highlighted that we had overpaid means that these mileage relief claims shouldn't be any different and stand out as needing checked. Or in fact if they did check it then at least I would know the money is 100% ours :-)

Fair enough - I would have to say though that ringing HMRC to check if my return was OK would be fairly close to the last thing that I would ever do!

KID77

Why do you say that?

[Deleted User]

KID77 wrote: »

Why do you say that?

Just my view after over thirty- five years of experience of doing this.

Let's say 10% of returns are randomly checked and another 10% have obvious errors. (Completely made up figures) I have submitted my return and there would appear to be an 80% chance that my return would not be checked. I am not terribly worried about this but would prefer not to have the hassle.

I could contact them as you have done and ensure that I am among the 20% - why would I do that?

Indeed, in your opening post you detailed that HMRC had not checked the claim - we are back into the 20% likelihood that they would. Unless, of course, you contact them and invite them to inspect your return.

Every single return, all ten million of them, leads to a calculation which could be checked at a later date.