Sending in tax return after a detemination

T J

I have a new client who didn't send in 2 years tax returns so got a determination. We have now sent the tax returns with the correct figures which show he should be due a tax rebate. Am I right in thinking HMRC will use the figures we have provided and "over write" their determination? Does this usually happen fairly quickly? They have had the returns 6 weeks now and the clients account online still shows the determination figures as owing - with interest mounting as he can't afford to pay it....

Thanks
T J

Heliocentric

Providing the determination's haven't been endorsed by the commissioners then you're right - the actual returns will over-ride the assessments.

Actually, even if they are endorsed by the commissioners, you can still get them overturned

PaulPSB

I'm quite interested by this thread.

My understanding was that once a determination was issued it would not be over ridden by a Return unless the Return showed higher liabilties?

Monsoon

I had a determination over-written by the actual figures - which turned out to be a tax refund!
At the time I had to look it up and I seem to recall there's 5 years after either TR filing date OR TR end of enquiry window (I forget which) to file the TR to be able to overwrite the determination.

Bluewednesday

faerie9 wrote: »

I had a determination over-written by the actual figures - which turned out to be a tax refund!
At the time I had to look it up and I seem to recall there's 5 years after either TR filing date OR TR end of enquiry window (I forget which) to file the TR to be able to overwrite the determination.

Agreed we've had exactly the same thing happen - apart from all 5 years were refunds. Typical case of sole trader with his head in the sand just paying determinations and ignoring the tax returns!

Dean

For clarity on those time-limits;

The determination must be made within the period ending 5 years after 31st January following the year of assessment. It may be superseded by a self-assessment made within the same period or, if later, within 12 months of the date of the determination.

Regards

Dean

Monsoon

Thanks Dean :thumbup1:

claudialowe

I have got the same sort of situation - 4 years outstanding returns - determination of £16K - tax payable £1.5K - HMRC have now got a court date - all because they are 3 months behind in opening their post.....

All this despite assurances that client's account was on hold while returns were prepared - they still haven't even processed the 64-8 - grrrrrrrr!

Claudia