PAYE Investigations Impact on Tax Retuen

by **wamstax** on Sat Nov 06, 2010 12:10 am

Hi Loza,
In fear of seeming pedantic I regret that I cannot agree with you about reopening previous years as in relation to each earlier year the tax liabilities on the profits were correctly determined as for each of those years there was in fact no PAYE tax Liability when the window during which an amendment to each return could be made (i.e. 12 months after the normal filing date) and therefore there was and is no case for repopening earlier years.

However can I just say that for the amounts at stake I must admit I would have been trying a short cut with HMRC to get the net taxes due for each year netted off so that the PAYE and relief that should have been given as a result of the deduction of the pAYE tax from direct tax would have been netted off. Mind you I would have been straight in to get the repayment for the "PAYE" Deduction relief released at the earliest possible date to set off against the PAYE due failing a set off deal.

All is fair in tax and war (if you can get off with it)
bill@wamstaxltd.com

by **wamstax** on Sat Nov 06, 2010 3:26 pm

Hi MSP,
There cannot be error or mistake (overpayment relief) as there was no error or mistake in the return when it was made as there was no PAYE liability or debt established at the date the return became final

I suppose you are saying that in a way but just felt that we need to clear up the potential "what was error or mistake" issue.

by **tom 7000** on Mon Nov 08, 2010 2:56 pm

Gentlemen,

I only picked the ball up so to speak after everything was agreed with HMRC. Rightly or wrongly, from what I have seen of the prior accountants they didnt fill me full of confidence.

The other half of the person we are talking about is now fired from the marriage for getting the P35's wrong..perhaps deliberately it was suggested...

And there are still profits available 09-10 to mop up the full £180k

As always

Many thanks

tom
Ps wamstax...bottle of whiskey to the normal address?