Checked a new client's previous accounts for 2006-07, and found that a capital gain was included in sales by mistake.
Is it too late to send in an amended return?
Replies (5)
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You have seen the accounts but what about the tax return? Until you know how the capital gain was treated in the tax computations you have no idea whether there is anything wrong with the return.
Was tax overpaid or underpaid?
So presumably you say there was an over-payment of tax rather than the reverse?
If so you are out of time to make an over-payment relief claim.
I am not convinced that the £5,000 would have been correctly treated as a capital gain in any event. More like a receipt outside the scope of tax altogether. But that's probably academic now.
Amended tax return
You could try a special relief claim, this is meant to replace the old equitable liability where the taxpayer should not pay incorrect amount of tax. Looking at some the demands they receive I know this sounds laughable but well........
The special relief claim will allow you to ask that the tax liability is corrected, even though it is out of time for an amended Self assessment. if you look up the rules it may be of use to you.