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My client's income each year is usually just below the higher-rate threshold. In his 2005 return he included interest of £1,000, which put him into the higher-rate bracket. Tax was paid as a result.
I finalised his 2006 return in the last week of January and noticed that the £1,000 income was actually received in 2005-06 (it was included in a statement prepared to 30 April 2005).
My client's income each year is usually just below the higher-rate threshold. In his 2005 return he included interest of £1 000 which put him into the higher-rate bracket. Tax was paid as a result.
I finalised his 2006 return in the last week of January and noticed that the £1 000 income was actually received in 2005-06 (it was included in a statement prepared to 30 April 2005).
I have therefore included it in my client's 2006 return as well — once again making my client a higher-rate taxpayer. Once the self assessment deadline had passed I was then going to request an adjustment to the 2005 return. However I now note that TMA 1970 s 9 suggests that the adjustment is too late.
It seems wrong that my client should pay tax twice on the same income. Can I do a common sense...
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
