Nick Farrow raised a query regarding using estimates in http://www.accountingweb.co.uk/item/177238">self-employed accounts as a result of data loss on a client's computer. He asked whether disclosure in the 'White Space' of the self-assessment return is required, or can one rely on reasonable and reliable estimation in order to avoid unnecessary disclosure.
Mark Lee explained that the purpose of disclosure in the 'White Space' is two-fold, as follows:
(1) To evidence that estimates have been used with due care etc. so that in the event of the estimates becoming apparent at a later date, it is clear that there was no attempt to mislead. This could be important as regards the adviser's reputation with HMRC.
(2) To reduce the prospect of HMRC being able to raise a discovery ass...