The case of Scoggins vs HMRC (TC08128) goes back to the 2015/16 tax year, when the taxpayer received several pension commutations. This meant he received a lump sum in exchange for forgoing part of his ongoing annual private pensions.
Each of his pension schemes sent him a P45 form and a covering letter stating that the tax they had deducted may not be correct once other income was taken into consideration. Scoggins was therefore encouraged to consider his overall tax position and let HMRC know if he needed to submit a return.
Scoggins did indeed later submit a 2015/16 self-assessment tax return showing (pre-populated) employment income, but did not include the pension figures, nor the figures from his P11D.
Scoggins spoke to the HMRC call centre regarding his return and paid over the £1,007.00 he was told was due. He subsequently submitted an amended 2015/16 return to claim additional travel costs.
Scoggins later submitted a 2016/17 return, but this time the pension figures were pre-populated, due to an update to HMRC’s systems.
In March 2018 HMRC noted that the 2015/16 return did not include the figures it had received from the pension providers, nor those amounts shown on the P11D for the year. As this was outside the standard 12 month enquiry window, HMRC relied on the fact it had ‘discovered’ the omissions and so could extend the enquiry window to four years.
An enquiry was also opened into the travel and subsistence claim.
Following a couple of false starts by HMRC where they used incorrect amounts, a letter was issued to Scoggins advising of additional tax for 2015/16 of £6,398.32, being £2,464.40 from the travel claim and £3,933.92 from the pensions and P11D omissions.
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