Smoke damaged Self Assessment

Rachel

Hello

I have a client who runs a burger van so mainly cash and they have had a house fire. Records are damaged. Obviously, I will try my best with the accounts but they will not be correct.

What are the procedures for telling HMRC that the records are damaged/incomplete/destroyed and what will my client expect. Will they have to prove fire etc.

Please help

T.C.

I would suggest producing accounts with limited records and explaining this in the "additional information" page of the Tax Return with as much information as possible, ie date of fire, incident report, insurance details etc.

Rachel

Thank you that is what I thought but was unsure if there was a special procedure.

Monsoon

I agree with TC, do what you can and disclose in the white space. I don't think there's any special way of doing it, as long as HMRC have all the details. Don't forget to tick the "estimate" box on the tax return.

Rachel

Ok the house is dangerous and nothing can be removed from it at the moment. The self assessment needs to be file by 31/1/12. Will HMRC offer an extension or will they prefer estimates. Obviously, I will call the tomorrow but just thought I would check if anyone had an answer/knowledge of similar.

Rachel

Spoke to HMRC and they were very understanding. Marked the account, said try and get an estimate in by 31/1/12 but if not appeal the fine.

Monsoon

I would stick an estimated return in anyway - saves having to appeal.

T.C.

Agreed. An estimate would be good at this stage with an explanation.

Rachel

Thank you, I think we will be filing a guesstimate.

What happens after the estimate is filed, do you have to fill in a paper return to correct or does it give you the option online? If a refund is due would HMRC pay anything until the correct return is filed?

Monsoon

Rachel wrote: »

Thank you, I think we will be filing a guesstimate.

What happens after the estimate is filed, do you have to fill in a paper return to correct or does it give you the option online? If a refund is due would HMRC pay anything until the correct return is filed?

HMRC will pay on an estimated return. If they refund too much once the actuals are in, then interest should be payable on the excess (I think).

I don't know about HMRC's own software, but 3rd party software will allow electronic amended returns to be filed. You can also just write to HMRC with the changes in the box numbers if that's easier. At least, I think you can still do this. If you use HMRC's own software, might be worth seeing if you can do amendments online.

T.C.

Yes you can amend a TR on the HMRC website.