SELF ASSESSMENT 2006-2007

[hariboh]

Need some advise please......

My husband is a self-employed sub contractor, he gets his tax taken off at source, tax year 2006-2007 he stupidly never done his tax return on time.

He has since done his self assessment at our local tax office about 4 weeks ago approx

His profits for the year were £26,000 and he paid tax on his vouchers of £6,240

He has just received a letter from inland revenue about late payment/surcharge notice

Section 59c(2) unpaid tax £3450.00 @ 5% surcharge of £172.50
Section 59c(3) unpaid tax £3450.00 @ 5% surcharge of £172.50

total surcharge £345.00

I know it means that he owes them £345.00...... but do we also owe them £3450??

[jpcentral]

The figures don't sound correct. It is difficult to know exactly what has happened but the obvious possibility is that the CIS deduction hasn't been shown on the tax return. There could be quite a few other explanations but without seeing the documentation it is impossible to say exactly what.

I suggest you either see a local accountant or go back to the tax office and ask them for an explanation of their calculation. Presumably your husband kept a copy of his tax return?

[hariboh]

hi thanks for you reply.

His tax assessment was done at the local tax office with an adviser.

I wondered if because his return was sent in really late they would send him a surcharge notice anyway, even if the tax owed had been paid at source.

Im hoping thats the reason, he works in the construction industry and hasnt had any work for months so where im going to find £3450 is beyond me.

thanks for your help

[hariboh]

I have just logged into the tax site online (which i should have done to start with) and according to that the surcharges have been amended to 0 and they issued repayment on the 30th June to the value of £398.05

Hopefully I will hear from them soon.