Thanks to everyone for the exciting debate. Apologies I couldn’t reply earlier due to technical difficulties. I have now collected more information of the case. HRMC has sent an inquiry of more information related to foreign income clarifications. The customer became domiciled last fiscal hence couldn’t claim remittance basis anymore. Foreign income is small around £10k, but I guess HRMC wants clarity on it. This inquiry came 14 months after the property SDLT filing transaction. Question customers raises about SDLT is that when collecting information for responding to HRMC he found an error in the SDLT that caused underpayment to HRMC. Can HRMC claim that underpayment now more than 12 months from filing SDLT return? Should customer flag it to HRMC asap before responding to the inquiry? Thanks
Thanks to everyone for the exciting debate. Apologies I couldn’t reply earlier due to technical difficulties. I have now collected more information of the case. HRMC has sent an inquiry of more information related to foreign income clarifications. The customer became domiciled last fiscal hence couldn’t claim remittance basis anymore. Foreign income is small around £10k, but I guess HRMC wants clarity on it. This inquiry came 14 months after the property SDLT filing transaction. Question customers raises about SDLT is that when collecting information for responding to HRMC he found an error in the SDLT that caused underpayment to HRMC. Can HRMC claim that underpayment now more than 12 months from filing SDLT return? Should customer flag it to HRMC asap before responding to the inquiry? Thanks!
Thanks a lot for the response :-) I based the assumption on this link, https://www.gov.uk/guidance/sdlt-hmrc-compliance-checks in particular the following extract: Time limits. HMRC normally has 9 months from the filing date to tell you that they’re starting a check. They’ve got longer if you’ve changed your tax return…
I also read the following extract from here https://www.patrickcannon.net/news/time-limit-for-hmrc-investigations/ : What is the time limit for HMRC to open an enquiry?
HMRC can open a full enquiry into a tax return if they give notice to the taxpayer and do so within the time limit. The time limit allowed is basically 12 months from when the return was filed
This is where my confusion is coming, apologies for my lack of knowledge
My answers
Thanks to everyone for the exciting debate. Apologies I couldn’t reply earlier due to technical difficulties. I have now collected more information of the case. HRMC has sent an inquiry of more information related to foreign income clarifications. The customer became domiciled last fiscal hence couldn’t claim remittance basis anymore. Foreign income is small around £10k, but I guess HRMC wants clarity on it. This inquiry came 14 months after the property SDLT filing transaction. Question customers raises about SDLT is that when collecting information for responding to HRMC he found an error in the SDLT that caused underpayment to HRMC. Can HRMC claim that underpayment now more than 12 months from filing SDLT return? Should customer flag it to HRMC asap before responding to the inquiry? Thanks
Thanks to everyone for the exciting debate. Apologies I couldn’t reply earlier due to technical difficulties. I have now collected more information of the case. HRMC has sent an inquiry of more information related to foreign income clarifications. The customer became domiciled last fiscal hence couldn’t claim remittance basis anymore. Foreign income is small around £10k, but I guess HRMC wants clarity on it. This inquiry came 14 months after the property SDLT filing transaction. Question customers raises about SDLT is that when collecting information for responding to HRMC he found an error in the SDLT that caused underpayment to HRMC. Can HRMC claim that underpayment now more than 12 months from filing SDLT return? Should customer flag it to HRMC asap before responding to the inquiry? Thanks!
Thanks a lot for the response :-) I based the assumption on this link, https://www.gov.uk/guidance/sdlt-hmrc-compliance-checks in particular the following extract: Time limits. HMRC normally has 9 months from the filing date to tell you that they’re starting a check. They’ve got longer if you’ve changed your tax return…
I also read the following extract from here https://www.patrickcannon.net/news/time-limit-for-hmrc-investigations/ : What is the time limit for HMRC to open an enquiry?
HMRC can open a full enquiry into a tax return if they give notice to the taxpayer and do so within the time limit. The time limit allowed is basically 12 months from when the return was filed
This is where my confusion is coming, apologies for my lack of knowledge