2019-20 self-assessment tax return submitted for a recently retired self-employed client. This was a new client and prep was complicated by the client suffering a long period of ill health/hospitalisation after they retired. HMRC sent a 'Check of your Self-Assessment letter' in January 2022 so we reviewed the client file in order to respond. We quickly discovered that an error had been made and not spotted by either us or the client before submission (essentially the net income they received from their professional practice was reported as gross income so practice costs were doubled up). We recalculated the tax and NI due, explained to the client that they would owe HMRC around £8k then wrote a long letter to HMRC explaining what had happened and about the clients health issues (with clients permission). Today we finally received a response from HMRC and I'm sitting here reading it over and over wondering what to do next because the letter simply says that following the review their conclusion is that the tax return does not need to be amended....
16th May 2022
Self Assessment check yields unexpected result
HMRC says no amendment required after we tell them income tax/NI under declared by 8k
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