Amending my Tax return - good/bad idea?

[Contract2008]

Hi to all,

Quick question about submitting an amendment to my 06-07 tax return for my expenses.

Situation is I have not put any expenses through my limited company for 2.5 years... after being flat out on a number of projects and naively thinking it is not worth my time and that I would get back round to it...

2.5 years have flown by and with things quieter now and due to the fact I will be closing my company in the next few months and going permanent I have started getting everything organised expenses wise for 07-08 year and realised its worth 2k - 3k a year!!

So im wondering how the IR would react if I make an amendment to my 06-07tax return and include the expenses - would it prompt an investigation type scenario or would they look at the case individually

- ie I had included £0 expenses and added them in afterwards so nothing untoward..

unlike if I had loads of expenses already and then tried to amend and add a load more - (I can see that might look bad)

As thats not the case just wondering if its worth the risk 2k - 3k for a possible investigation but with closing the company down not sure I want the hassle, on the other hand 2k - 3k is alot to walk away from if its possible to get it back easily..?

Probably not made much sense above but what im trying to ask is:

1. How hard/costly is it to make an expenses amendment to my 06-07 tax return

2. What would happen would they just send me a cheque for any difference/benefit?

3. How risky is it to do these amendments/will it automatically trigger an IR35 investigation etc and lots of unwanted hassle?

Or is it a normal thing that people do all the time.. so not to be feared?

Many Thanks for your replys in advance

Bryan

[rawly]

I just posted this on another thread, but this is the procedure for submitting an amendment and what happens. You can do it in writing / alter the form / or just a section:

http://www.hmrc.gov.uk/manuals/sam/s...amrtn05113.htm

It will extend your window of investigation to the end of the next Quarter. So, it was January 2009 and will now be April 2009 or July 2009, etc..... (So best to get it in before the end of April)

There's no evidence it would open you up to a greater chance of an investigation. But who knows?

From 07/08 you can do the amendment online - but not in your case from 06/07.