self assessment - possible mistake

thechippy

Hi all,

My return for 06/07 has gone in, but I think there may be a mistake which means my tax bill is too high.

Basically, there is an invoice I issued in march 07, within the tax year, but when it was paid, 20% cis was deducted. I forgot to deduct the amount paid in tax (cis) from the tax owed to the taxman. Do I just call them and ask to file an ammended return?

Many thanks

BoGoF

Send the voucher to your tax office and ask them to amend box 3.97 (I think) to include the CIS tax deducted

thechippy

Thanks for your help.

The invoice was actually paid in april, can I still include it? A friend seems to think that it's by payment date of the invoice and because it was paid in april I may not be able to include it! This does not make sense to me because, the value of the invoice is in 06/07 which will obviously be in my t/o, so I'll be taxed on it, but I can't get the cis tax on it until 07/08. I'm confused...

Elaine_Wilson

The invoice was issued in March 2007 and was correctly included in your turnover for 2006/07. It would therefore be included in your calculation of total tax due for that year.

When the invoice was paid in April 20% tax was deducted. This will be deemed to be a payment on account of your tax liability for 2007/08 and so does not affect your last year's return.

It might not seem logical but ...

thechippy

Thanks very much Elaine,

I'm being mr thikky here...

So, what you're saying is......
The 20% of that invoice that was deducted through cis, I cannot reclaim this year, as the invoice was actually paid in the next financial year, 2007/2008.

I just have to suffer the fact that I will be paying tax on that invoice this year, but can't claim it back until next year!

Many thanks,

All of your help is much appreciated.

FluffityBunny

you have to go by the date on the issued cis25 tax voucher, if it was for month ending 05/04/07 it is for the 2007 tax return you have just completed.

Elaine_Wilson

Yes, you're right.

If you did the work before 5th April and you also invoiced before that date then the income has to be included in that year.

If the payment is received after 5th April it is in the next year and the tax deduction cannot be taken into account until the following year's return is done.

You may lose out this year but, as with all these systems, there are winners and losers.