A matter of timing

23 June 2009

Issue: 4211 / Categories: Forum & Feedback , Admin

HMRC believe that interest has been underdeclared on a client’s tax return, but is the fact that the investigation was started after the expiry of the twelve month enquiry window within the rules?

One of my clients has received a letter dated May 2009 from HMRC with regard to his self assessment tax return for the year ended 5 April 2007.

The letter states that the £1 900 bank and building society interest shown as received on his return is substantially less than their information which suggests that the figure should be in excess of £4 000.

HMRC have now invited my client to complete a form stating that he either agrees or disagrees with the figures and if he does agree explain the reason for such a difference with a one paragraph space for an explanation.

I have not as yet discussed this with my client. The 2006-07 return was filed within the normal filing limits so the deadline for an enquiry would surely be
31 January 2009. HMRC now appear to be launching an enquiry in May...

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