Letter from the INLAND REVENUE!

[notescontractor]

I have just received a letter from the INVAND revenue saying that i did not declare interest income on my 2006-2007 tax return. They have now asked me for a list of all bank accounts that i held during this period. They have also asked for certificates confirming the interest received during this period.

Is this something to be worried about? The letter states that they hold information which suggest I should have paid tax. Can the IR see what I have in my bank account?

Has anyone else experienced something similar to this before and what was the outcome.

Thanks again.

[Liability]

YES - Thanks to Labour - they can now have access to our personal financial details and can obtain it with ease.

[norrahe]

If you had a decent accountant they would have made sure to get all that information from you.

Also your bank should issue you with end of year tax certificates.

[ChimpMaster]

Don't be worried, this is just standard procedure because they have noticed you didn't provide all the information.

Just send them the information - promptly - but only what they have asked for. Don't give them a list of all transactions through the accounts, i.e. if they just want the account names & interest income certificate then that is all they need.

They'll probably want to charge you back-tax (if it's worth their while), but more importantly they're looking to adjust your PAYE accordingly for future years.

[pmeswani]

If you had a decent accountant they would have made sure to get all that information from you.

Also your bank should issue you with end of year tax certificates.

Not all of them do. I had to go to Nat West and request one. NatWest did threaten to charge me for one, if they had sent one already... but I knew they hadn't sent one. I also had to order one online with Alliance & Leicester. I did get one automatically from Nationwide though.

[norrahe]

Not all of them do. I had to go to Nat West and request one. NatWest did threaten to charge me for one, if they had sent one already... but I knew they hadn't sent one. I also had to order one online with Alliance & Leicester. I did get one automatically from Nationwide though.

I must be quite lucky that my banks automatically send them to me.

And Tazman is right, as long as you get the info to them promptly there shouldn't be a problem.

[pmeswani]

I must be quite lucky that my banks automatically send them to me.

And Tazman is right, as long as you get the info to them promptly there shouldn't be a problem.

Yep. I was lucky that Nationwide had their act sorted out, otherwise I would have forgotten about it. Also, my Accountant gave me a checklist to go through, so that these things didn't get missed.

[max]

I have just received a letter from the INVAND revenue saying that i did not declare interest income on my 2006-2007 tax return.

Did you earn any interest? If not then no problems.

If you did, why didn't you declare it?

[Cyberman]

I'm pleased that I declared all of mine then, even if it did cost me a lot in extra tax.

[suityou01]

I'm pleased that I declared all of mine then, even if it did cost me a lot in extra tax.

I used to fill out tax returns as a permie. My financial life was quite dull, same amount of salary coming in, same bills. The levels in my current account were basically the same each month. For a given tax year I would take one months interest, and * 12. The amounts in question were so piffling that it really didn't matter. I had this on the authority of some good accountant friends.

As a contractor, the sums lurking in back accounts tend to be somewhat larger and attention to this detail is important. In your case I think this is a storm in a teacup. Cough up the information promptly, and toe the line. Sleep easy my friend, this is just due process and nothing more.