taken on a subcontractor client
they had previosuly self assessed and had an enquiry into the 14/15 tax return. the client buried their head in the sand and didnt reply to any of HMRC's correspondence. subsequently HMRC made an assessment and there is a large tax payment due back to them
we are just bring the 2015/16 & 2016/17 tax returns up to date, its clear from these that HMRC's assessment of expenses for the 2014/15 year was way off the mark and that the assessed amount of tax is massively overstated
question is, what can we do about it now? if anything
Replies (3)
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Ask HMRC to reopen the case.
The "my client is an idiot" argument is usually effective and so often spot on the mark.
A Determination can be made if a Return has not been submitted. There was an Enquiry into the 2014/15 Return and the action by HMRC due to lack of response would be by assessment (amending the Self Assessment in the Return) rather than a Determination.