Christmas Card from HMRC, Check of self assessment under section 9A

[duffy78]

Hi all,

Received a letter from HMRC this morning stating they want to check my self assessment for year ending 5 April 2012 under section 9A of the taxes management act.

Crux of the matter is they want to check the amount of benefits that I have received from my employers. They say the figures that I have entered on my tax return do not tally up with that sent by my employer.

Travel and subsistance payments figure from my tax return = 0, figure from employer = £2098

Other benefits figure from my tax return = 0, figure from my employer = £748.


Now Ive checked my self assessment that I completed that year and I have completed page 11 of 14 with the following figures

Box 17 Business travel and subsistence expenses = £2099

Box 20 Other expenses and capital allowances = £748.



So what's going on?? Mistake by HMRC? Have I entered the figures in the self assessment in the wrong section? Am I in for a rough Christmas?





Thanks

Graeme

[SteelyDan]

What does your accountant say? Oh, you don't have one? I see...

[duffy78]

Useful. Thanks


I do have an accountant an have emailed them however I complete my own SA using the hmrc guides. Hence me thinking its a mistake as I feel I've completed the correct sections.

[Greg@CapitalCity]

So what's going on?? Mistake by HMRC? Have I entered the figures in the self assessment in the wrong section? Am I in for a rough Christmas?

I am afraid it looks like a mistake by you. You missed putting those expenses into the previous section of the tax return titled "Benefits from your employment – use your form P11D (or equivalent information)". Its a misleading title but you need to complete it. If all your expenses are the usual business expenses and none are taxable benefits (like health insurance etc) then the figures in Section N of your P11D go in the box labelled “Expenses payments received and balancing charges:”. Any other sections you cannot match go in the “Other benefits (including interest-free and low interest loans):” of the tax return.

With what you did, you may have under-reported tax. I don't think you are in for a miserable Xmas - just get it all cleaned up quick smart with the HMRC.

[duffy78]

That's exactly what I have done Greg. I'm looking at my tax return right now. Page 11 lower section 'benefits from your employment - use form P11D.

And I have filled in the sections 17 for business travel and subsistence at £2099 and section 20 for other expenses and capital allowances at £748.00.

Thanks

[duffy78]

Ah no. I've filled in the lower section entitled Enployment expenses.

I'll speak to my accountant in the morning to see where I stand.

[TheCyclingProgrammer]

Ah no. I've filled in the lower section entitled Enployment expenses.

I'll speak to my accountant in the morning to see where I stand.

The reason you have to enter both is that the expense payments you received are not strictly exempt from employee benefit legislation (which is why they have to go on your p11D) but relief is available through personal tax legislation, hence the double entry.

It's annoying but has to be done. Get your accountant to handle this if you can but I'm sure a quick call to HMRC to explain what you've been done will get this resolved quickly. They will probably just ask you to submit an amended return.

[MarillionFan]

Must be something to do with this time of year.
They've just checked me for 2012 and 2013 and found both wrong. I now owe £4500 and have until the 29th Dec.

Merry Christmas HMRC. Bah humbug.

Whats worse! It was my accountant who entered it wrong both years!!!

[TheCyclingProgrammer]

Must be something to do with this time of year.
They've just checked me for 2012 and 2013 and found both wrong. I now owe £4500 and have until the 29th Dec.

Merry Christmas HMRC. Bah humbug.

Whats worse! It was my accountant who entered it wrong both years!!!

Why do you owe anything? If you've claimed tax relief for your genuine business expenses but forgotten to add the expense payments received to your SA like OP did then it would seem like you've underpaid tax but the solution would surely be to submit a correction showing you did receive expense payments?

[MarillionFan]

Why do you owe anything? If you've claimed tax relief for your genuine business expenses but forgotten to add the expense payments received to your SA like OP did then it would seem like you've underpaid tax but the solution would surely be to submit a correction showing you did receive expense payments?

They left my salary off two returns running. HMRC questioned it, as it states on my accounts I drew one.