Estimate figures

Julia Crouch

Hi

If a SA, sole trader, client provides estimated figures for the completion of their 2008 tax return (box 20 ticked, filed January 2009), pays the estimated tax due but does not follow up with actual figures to enable an amendment to be made, at what point, would you consider reporting? Bearing in mind time allowed to amend a SA tax return and any amendment might not actually show additional IT due?

Also at what point could I ethically get rid of this client, knowing that the return requires amendment?

Julia

T.C.

Firstly it is not your problem, but the client's. It would be your decision whether to keep him or not. I have a client who put in estimated figures for 2007 and 2008 through no fault of their own (lost paperwork after partnership collapse). I have heard nothing. Not sure if HMRC will actually do anything.

Julia Crouch

Thanks for the response TC.

It just does not feel right, surely the revenue must chase up estimated returns at some point?

Julia

JodieR

Julia Crouch wrote: »

surely the revenue must chase up estimated returns at some point?

When I was working for EY about 7 years ago we had a client who'd submitted estimated returns for 4 years and never heard a squeak from the revenue about it. Probably helped that she had paid all the estimated tax we'd told her too and it did eventually get sorted out and she got a refund and everyone was happy.
I doubt HMRC are any better at chasing for final figures these days.