Back dated self assessments

Carole

A new client has been including his wifes foreign pension income as his own for many years and doing his own tax returns.
He is a 40% tax payer and his wife has little income, so obviously paying more tax than necessary.
If I approach HMRC now about past years what penalties may be likely on his wife for not submitting SA's?
Any ideas please?

douglasstroud

Has the wife received any notices to file the tax returns?
If not there will be no late filing penalties however if tax is owed for these year then there maybe tax geared penalties

Carole

No she has never received notices to file.
The tax due would be minor as it would just push her over the personal allowance, but none the less still owed.

FAC

The best is to admit the client and go through the authorisation process. Once you formally have the Authority to act in behalf of client then ring the agent helpline and explain them the situation. They are quite good to guide you through the solution.

Carole

In process, thank you

douglasstroud

Don't forget to amend the husbands returns as well

Carole

Yes I am doing an overpayment relief claim for the husband but can only go back 4 years, so to 15/16.
I plan on suggesting that because of this it is reasonable only to backdate wifes self assessments to 15/16.

Why are we doing this on a bank holiday monday? Benefits of self employment !