Amending my Tax return - good/bad idea?

contract2008

Hi to all,

Quick question about submitting an amendment to my 06-07 tax return for my expenses.

Situation is I have not put any expenses through my limited company for 2.5 years... after being flat out on a number of projects and naively thinking it is not worth my time and that I would get back round to it.

2.5 years have flown by and with things quieter now and due to the fact I will be closing my company in the next few months and going permanent I have started getting everything organised expenses wise for 07-08 year and realised its worth 2k - 3k a year!!

So im wondering how the IR would react if I make an amendment to my 06-07 tax return and include the expenses - would it prompt an investigation type scenario or would they look at the case individually

- ie I had included £0 expenses and added them in afterwards so nothing untoward unlike if I had loads of expenses already and then tried to amend and add a load more - (I can see that might look bad)

As thats not the case just wondering if its worth the risk 2k - 3k for a possible investigation but with closing the company down not sure I want the hassle, on the other hand 2k - 3k is alot to walk away from if its possible to get it back..?

Probably not made much sense above but what im trying to ask is:

1. How hard/costly is it to make an expenses amendment to my 06-07 tax return

2. What would happen would they just send me a cheque for any difference/benefit?

3. How risky is it to do these amendments/will it automatically trigger an IR35 investigation etc and lots of unwanted hassle?

Or is it a normal thing that people do all the time.. so not to be feared?

Many Thanks for your replys in advance

Bryan

stratty

First thing I notice is that you say these expenses where not claimed through your limited company. If this is indeed the case then the expenses should be allocated against the income of the limited company for the relevant accounting periods.

If indeed these are expenses of your limited company then I do not believe you can claim them under self assessment.

Reworking the accounts to include the additional expenses will most probably trigger an enquiry from the tax office but providing you have nothing to hide then you will be able to satisfy the questions raised.