Member Since: 24th Feb 2020
14th Jul 2021
I completed a paper return for an elderly couple who had disposed a rental property.
On the paper return, you have to work out a rough estimate of the tax due and submit your calculations showing what you estimate to be their tax liability.
Sent this off to HMRC and some 8 weeks later, we had acknowledgment that the return was received and a tax payment request.
However, HMRC had ignored our calculations of the tax due and had worked out their own estimate of the tax payable, without explanation of how they had calculated this!
So what was the point of asking the taxpayer to estimate the tax due?
Overall, the tax due in total for both the taxpayers was within a few hundred pounds of our calculations, so I advised the taxpayers to pay the amount demanded, thinking it will come out "in the wash" when we do their tax returns for 2020/21.
However, having read the article above, I am now a bit concerned since any overpaid CGT will not be offset against the total tax bill.
More time will be spent calling HMRC and to allocate any overpaid CGT against the tax bill!
Happy Days! (NOT)
19th May 2021
Good article. Thanks.
I also read that changing the accounting date to 31 March will delay the MTD for income tax by another year, since that kicks in on 6 April 2023, and clients with a year ending on 31 March 2023 wont have to comply for another year