Correcting CA's 07/08 SA Return

Correcting CA's 07/08 SA Return

Didn't find your answer?

Self employed van driver.

Completed his own tax returns incorrectly!

In 07/08 he bought a new van on HP, previously he had rented one. He used to put the rental payments in Motor Expenses so he continued to do that with the HP payments for the new van.

HMRC told me to write in with the changes need to his 07/08 tax return which I did.

They have replied (after 2 months!) saying I must write in stating the following..., point 1 of which is "Mr X is making a claim for overpayment relief under Schedule 1 ABTNA (sic) 1970.

I have been looking at FA2009 Schedule 1AB Recovery of Overpaid Tax etc.

It specifically excludes relief for Capital Allowance Pool claims In 2(2)c.

My view is that his SA return is materially incorrect as he overstated Motor Expenses and the Capital Allowances claim is merely part of correcting his Return.

I wonder if anyone has come across anything similar.

Assuming that they reply in the negative and quote 2(2)c then I guess I just have to amend 08/09 with a 20% WDA and then amend 09/10 with a hefty Balancing Allowance on disposal.

Any thoughts gratefully received. 

Replies (2)

Please login or register to join the discussion.

avatar
By justsotax
04th Mar 2011 16:25

the overpayment relief is just merely the the old error/mistake

which presumably you would have done the amendment under re the motor expenses.  However any claim for capital allowances is now out of time, I assume this is the reason for the letter and its specific wording....?

Thanks (0)
avatar
By mumpin
06th Mar 2011 13:56

Time limits...?

Hi Justsotax. I appreciate the reply.

Can you point me to the legislation for the time limits on CA claims for individuals?

Also, if an individual chooses to make no CA claim, say because his profit is just under his personal allowance, then the full balance of the capital expenditure is available in the following year to claim WDA's on. Do you think this would not be the case in a situation such as I've described and if so why?

Many thanks.

Thanks (0)