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Tony Tax
Tony Tax, Tax Consultant
Category: UK Tax
Satisfied Customers: 15915
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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I have always paid my tax. I am law abiding and generally keen

Customer Question

I have always paid my tax. I am law abiding and generally keen to observe the law at all times. I employ an accountant to complete my annual tax return to HMRC. I duly completed my tax return for tax year 2011/2012 via my accountant before the deadline of January 31st 2013. My income was a combination of PAYE, Annuities, Pensions and casual labour. The total came to approx. £60k gross. I discovered the other day that I had omitted to forward a P60 for a Prudential Annuity with a Gross Annual Income of £2,961 to my accountant and this amount was not included in my return for 2011/2012. No tax had been deducted at source for some reason from this particular amount. The point is that I made a genuine mistake in not submitting this P60 for Prudential to my accountant - therefore I understated my income on my tax return submitted on January 31st 2013 by £2,961. I have informed my accountant and he has recalculated my return to include this amount and we will resubmit my return with the correction. My question is: what are the penalties/ penalty I am likely to receive from HMRC? My accountant says there is no need for any concern. I will not get a criminal record etc...
Submitted: 4 years ago.
Category: UK Tax
Expert:  Tony Tax replied 4 years ago.

Your accountant is correct. You won't get a criminal record nor is there any need for great concern. People make mistakes. That is why taxpayers have a year from 31 January 2013 to amend their 2012 tax returns. You are well within that window. If the tax office opened up an enquiry into your return as a result of the amendment, your accountant should look to protect you from any over zealous tax official.

If you have any additional tax to pay you should pay it as soon as possible to avoid a 5% penalty being charged if it remains unpaid at 31 July 2013. A 5% penalty will be added to any additional tax due as a result of the omission of the annuity that was effectively outstanding as at 28 February 2013. Interest will be charged at 3% per annum from 1 February to the date that any additional tax is paid.

There is the possibility of a tax based penalty for the omission but I would fight that if I was your tax adviser. You can read about those penalties here.

I hope this helps but let me know if you have any further questions.
Customer: replied 4 years ago.

My main concern is to avoid a criminal record...but you seem to be saying that that is too dramatic a reaction.

Expert:  Tony Tax replied 4 years ago.
You certainly will not get a criminal record for an honest error. You would have to be involved in deliberate tax evasion for that to happen.
Customer: replied 4 years ago.

Thank you.

Expert:  Tony Tax replied 4 years ago.
Thanks and good luck.