2nd Aug 2012
If you submit your own Tax Return online or even if you submit a paper return before 31 October and ask HMRC to do the calculation for you, always check HMRC’s calculation for obvious errors, as sometimes computations can be incorrect.
If you don’t check the computation then HMRC will ask you for the tax calculated. This could potentially result in paying much more tax than is properly due.
John submits his Tax Return in paper format before 31 October and asks HMRC to calculate the tax for him.
His own calculation shows that he is due to pay £500 this year, but HMRC’s calculation comes back and shows a liability of £1,000 due to an error by HMRC.
He assumes he has made a mistake and ends up paying too much tax.
This could be easily avoided by checking the computation or having the Tax Return professionally prepared together with a tax calculation, so that your tax adviser can query any mistakes by HMRC and get them rectified.