Self Assessment Surcharges

Self Assessment Surcharges

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It is my understanding that when a taxpayer advises the Revenue of an amendment to their Tax Return, the tax is payable by the end of the 30 day period beginning on that day.

Surcharges are due in respect of tax which remains unpaid 28 days after the due date, so therefore it would follow that in the case of revisions a taxpayer would have 58 days in which to settle their liability to avoid surcharges.

Could someone please confirm that this applies in all cases of amendment, even those which are outside of the amendment window, i.e. after 12 months following the filing date.

We have a client who has only just advised of Trust income for the last 6 years!
SP

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By barryhallam
15th Sep 2005 15:17

58 Days

I agree that a Surcharge does not arise until 58 days after an amendment. Howevewr if HMRC consider the omission from the original return to be negligent they may impose penalties.

For the closed years the return cannot be ameneded (although in practice this does happen). HMRC should raise Discovery Assessments and again there will be 58 days before a Surcharge will arise. Again HMRC can impose penalties.

As I understand it HMRC cannot make a Surcharge AND impose tax geared penalties

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David Winch
By David Winch
15th Sep 2005 15:40

MLR and NCIS

I assume that the client genuinely did not realise until recently that the trust income ought to be entered on his self assessment tax return.

If you do not suspect that the client did realise that it ought to be entered, and there are no reasonable grounds for such a suspicion, then you only need to inform HMRC of the negligent omissions.

On the other hand, if you do suspect the client deliberately failed to supply the relevant information on his tax returns with the intention of evading a tax liability (or there are reasonable grounds for such a suspicion), then you also need to report the matter to your firm's Money Laundering Reporting Officer (and he will need to report it to NCIS) in addition to informing HMRC.

If you are an MLRO you can get confidential one-to-one email support, information and NewsAlerts from my website www.mlrosupport.co.uk.

David
[email protected]

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