A newly resident (wef 2016/17) but non domciled client, with unremitted income in excess of £2K, did not formally claim the Remittance Basis on her 2016/17 Tax Return (i.e. did not tick box 28 on page RR3), as she didn't know she had to, but did enter info in the white space to say she is non-domiciled and so is taxed on the Remittance Basis, thus didn't declare her unremitted overseas income (as she is not yet a long-term UK resident she is not liable to the RBC). Am considering if it is worthwhile claiming Error & Mistake Relief to formally make the claim in order to cover her, in case HMRC get difficult. I understand from RDRM32020 that S33(2A)(c) TMA1970 precludes the withdrawal of an RB claim, but does it also preclude a new claim?
Thanks.
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HMRC guidance is out of date - Error or Mistake relief no longer exists, and hasn't done so for some time. What you need to consider is relief for overpayment of tax.
Has any tax been overpaid? if not, no relief.
Also, I haven't checked to see if there is any specific provision for RB claims but in general you can't make an overpayment relief claim in respect of a claim that needs to be made in a return (can an RB claim be made outside of a return? If so, an overpayment relief claim may be made, subject as above to an actual overpayment of tax).
At the end of the day, though, HMRC would need to raise an enquiry into the return, at which point it should be possible to amend the return to include all necessary claims.
UPDATE - I've checked, and it is possible to make a claim outside of the return, with the usual 4-year time limit, so - if beneficial - just go ahead and make the claim.
As I said, no need to worry about overpayment relief etc. There is no need to amend the return - simply make the RB claim in writing.
If she claims remittance basis - she loses her personal allowance, so there would presumably be underpaid tax somewhere to sort so something needs to be done