I have a client who is just setting up a business in the current tax year. He was employed in 2010/11 and not under self assessment. I reviewed his P60 for 2010/11 and there is a shortfall of tax paid of around £3,500. This was due to a change of tax code during the year and the new code being on a M1 basis.
I have made the client aware of this shortfall but as he was not under self assessment, should I advise him that HMRC need be notified of this underpayment or do I advise that its the Revenues responsibility to use the information they have and issue a P800 within 12 months of the tax year end ?
Replies (3)
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Are you qualified?
If so then your engagement letter will have warned the client of your professional obligations to HMRC. Talk to your ethics helpline.
Chances are
he will get picked up in the reconcilliations that are going on at the moment, and ought to be flagged for a review by HMRC.