Tax return error correction - interest?

howryoo

In preparation of my 2020-21 tax return due at the end of this month, I discovered that I've not declared around £500 worth of savings interest for the return filed at the end of January 2021.

I understand that I can amend that return online as it's still within 12 months of the original filing date, but does anyone know whether I'd get hit with any interest / penalties?

And for those who've been here before, do you complete the revised return as if filing for the first time, or do you enter the difference in the relevant field?

There'll obviously be additional tax to be paid by me, but I'm wondering if there'll be interest etc and how much?

Thanks.

[Deleted User]

The tax for 2020/21 is payable by 31st January 2022  - so no interest and definitely no penalties. Additionally you have until 31st January 2023 to amend that years return.

howryoo

purdyoaten2 said:

The tax for 2020/21 is payable by 31st January 2022  - so no interest and definitely no penalties. Additionally you have until 31st January 2023 to amend that years return.

Thanks for your reply, but I was referring to the 2019/20 tax year.

' .... I discovered that I've not declared around £500 worth of savings interest for the return filed at the end of January 2021'.

So if I amend by January this year, there'll be no ramifications?

Dazed_and_C0nfused

If you voluntarily amend your return then the "ramifications" will depend on how this impacts your overall tax liability.

If it doesn't increase it then there won't be any but if you owe more tax (or had a greater refund than was actually due) then you will need to pay the tax owed and will be charged interest from 31:01:2021 until the tax is paid.  Interest may run for a longer period of you had POA for 2020:21.

Voluntarily amending the return should negate the possibility of penalties though.