Is it too late to amend an SA tax return?

Is it too late to amend an SA tax return?

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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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By johngroganjga
13th Jan 2015 23:45

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?

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By ugdiv
14th Jan 2015 11:07

Sale of a gift

Thanks for the reply.

I have seen the tax return, and the amount was treated (wrongly) as business income.

Client was gifted a big box of secondhand CDs and sold them on ebay - this was not relevant to the self-employed business type (office book-keeper). Proceeds of sale was ~£5k.

Is it too late to submit an amended return for 2006-07? Or do other rules permit a correction?

 

 

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By johngroganjga
14th Jan 2015 11:19

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.

 

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By FMtaxation
14th Jan 2015 12:33

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.

 

 

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RLI
By lionofludesch
14th Jan 2015 12:37

Special Relief

Special relief is your only hope, I'm afraid.

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