paulwakefield1
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Would HMRC care?

Would HMRC care?

Following the completion of the 2010/11 self assessment returns by an elderly couple, it is apparent that dividends received were underdeclared in 2009/10. Consequently tax has been overpaid. The amounts are not substantial (~£30 for one and ~£200 for the other). There are strong reasons for letting sleeping dogs lie.

Any problems with HMRC by leaving things as they are?

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18th Dec 2011 11:24

Is it me?

Am I being a bit slow (it is Sunday morning!) but how can underdeclared dividends result in an overpayment of tax, given that the tax credit isn't repayable? Surely you must mean overdeclared?

Anyway, if the result is too much tax has been paid, I can't see why HMRC would be remotely bothered if it isn't reclaimed - assuming these 'strong reasons' are nothing to do with tax!

Cathy

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18th Dec 2011 16:38

Whoops - to clarify

Original post was a bit cryptic. There was no overall tax liability except that there were payments made under gift aid so assessed to tax on the gift aid amounts - the dividend credits would have reduced that liability.

I couldn't see why HMRC would be bothered but thought I should check since it's not my field so thank you for confirming this (reasons are absolutely nothing to do with tax).

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