out of time for 05/06 SA
I don't think anything can be done about this but if you know any different??
Client hadn't prepared tax returns from 05/06 onwards, they knew they were nearly always owed refunds due to mileage claims but never bothered to do the paperwork. They only started moving on it when a determination was issued (for 05/06) and the baliffs were knocking on the door to collect outstanding payments.
We have now completed all the returns up to 09/10 but the 05/06 is now out of time (time limit ran out on 5 April 2010) does this mean that my client will not receive anything back. His tax assessment for 05/06 is circa £300, the determination was £1,000 (plus interest and penalties). Is it just a case of hard luck?
Think I know the answer but is there anything i have missed?
Not in these circumstances
By issuing a determination HMRC brought it back into time.
Think about this logically - if that was not the case then HMRC could send us all a £1million determination for, say 1990/91, and then say it's payable because any attempt to contest it is "out of time".
Had you simply decided to try to reclaim overpaid tax in the normal manner then you would be out of time, but you are not, you are contesting an incorrect determination. Therefore submitting the return should reduce to determination to zero. Actually getting the £300 refund as well may be a different matter, but again I would argue that HMRC have reopened the year, not you, so they must live with the consequences of doing so.