Estimated figures for previous years self assessme

Client did not provide full info to HMRC

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Hi

My client has asked me to appeal and query a decision by HMRC not to award him a tax rebate.  Upon delving into this I have discovered that my client has no CIS statements to uphold his rebate claim (claims he was being deducted 30%), but neither has he kept any receipts for expenses.

I have just submitted his 15/16 return and there were some receipts for this supported by bank statements where receipts were missing.  But he was fully self-employed for that year as a gardener and this did not come within CIS.

It is only for one of his previous years where he was working in construction, and was a gardener at all other times.

My question is am I able to submit reasonable estimated expenses to HMRC for prior years?  I have never come across such a situation before as most of my clients just shrug it off if they've missed out on something (construction workers).  However, this client was most upset that he was expecting a large refund and ended up with a tax bill - his earnings were probably just a few quid above his personal allowance.

I don't know the full situation with the supposed CIS deductions and will follow this up - if these were legit then that info would be held by HMRC I would have thought.

thanks

Replies (5)

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By K81
10th Feb 2017 10:30

HMRC usually only refuse to repay CIS credits on a self-assessment tax return if the CIS shown on the return does not match the details they hold of CIS deducted.
Have you asked HMRC why they have not refunded this?

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Replying to K81:
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By legerman
10th Feb 2017 16:05

K81 wrote:

HMRC usually only refuse to repay CIS credits on a self-assessment tax return if the CIS shown on the return does not match the details they hold of CIS deducted.
Have you asked HMRC why they have not refunded this?

Agreed

I made a claim for a CIS subby last year and they refused just over half of it, because they didn't have a record from the contractor concerned. However they also sent me a breakdown of all the contractors the subby had done work for and I was able to identify the one missing.

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By legerman
10th Feb 2017 16:09

He needs to identify the contractors he worked for and request CIS statements. You'll need to send them to HMRC, ideally together with subby invoices from the time. Without them HMRC can do nothing.

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By Eve 2206
10th Feb 2017 17:05

Thanks. I will ask him further info on the CIS. He's a new client (friend of a friend etc) but his account is in disarray. I am not officially his agent yet so cannot speak with HMRC. I will need him to authorise me or I won't get any further on the CIS.

What about the expenses though, where he hasn't kept receipts? Will HMRC accept reasonable estimates do you know - I've never had to provide estimates before.

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Replying to eve2206:
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By legerman
10th Feb 2017 17:25

eve2206 wrote:

What about the expenses though, where he hasn't kept receipts? Will HMRC accept reasonable estimates do you know - I've never had to provide estimates before.

Personally I would only apply expenses where they can be verified as such eg a bank account.

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