I am just finalising his 2004/05 accounts and tax return and wondered if there was any relief available for the fact that his previous accountant did not allow for FYA's in 2003/04.
Thanks for any views.
Stephen Walker
Replies (8)
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Obviously previous post not clear
I haven't looked it up but isn't the time limit for making a FYA claim (or any other CA claim) 2 years? (not the error or mistake)
Time limit for capital allowances claims
Rachel
My understanding is that time limits for FYA and other capital allowances claims is the same as for tax returns generally. In terms of income tax for 2003/04 the time limit for a voluntary amendment of the return (and hence a claim for FYA) expired on 31 January 2006 (12 months after the filing date for the 2003/04 return).
My understanding is that a failure to make an advantageous claim would not be regarded as an "error or mistake" within the scope of s 33 TMA 1970.
So, basically the opportunity to claim FYA for 2003/04 has now been lost.
So the answer to the original question, is there any relief available for the fact that his previous accountant did not allow for FYA's in 2003/04 - in a word - is "No".
David
Confusing it with the CTSA position
Sorry see where the mistake was - yes too late and I don't think a s33 should strictly work (though HMRC do seem to sometimes allow these even when strictly not allowable)
Has there been an error or mistake?
Has there been an "error or mistake" which can be 'corrected' within the scope of section 33 TMA 1970, or has there simply been a claim which was less than optimal?
David
Level of earnings??
Can I suggest that if possibly his level of earnings were such that he was below tax for this year, then maybe the FYA was disclaimed. In which case, if he is into tax the next year, CA's can be claimed on the original amount, so not wasting any allowances.
Time limit for a claim
Isn't the time limit for a claim two years? & completely agree with John re level of earnings and checking whether a claim should be made