by maisie on Mon Apr 26, 2010 7:51 am
I file taxes in two countries, and when doing my taxes for the other country I discovered an error in my UK return (the one just filed in Jan 2010). I missed out a months rent, less than 1000GBP, and also got the fees wrong by less than 5GBP for the same month. I don't think the error will change the amount of tax I owe, as it related to rental income, where I actually made a loss last year, so it just reduces the loss. So I'm not especially worried about penalties. What I am worried about is that it might trigger an audit. I don't have anything to hide, but it would be a pain and potentially quite expensive with all the accountants fees if I did get audited, especially given affairs in two countries. I have done my own taxes for the past two years, but previously used an accountant (not sure if that makes a difference). So my questions are:
1) Is there a 'good' way to declare it? Should I explain the spreadsheet error in detail or just say I made a mistake?
2) Should I also tell them about the 5GBP error in the management fee? I put an amount that was too low, so the error would be in HMRC's favour. I'm wondering if it would be better just to leave it, as two errors in the same return seems even more dodgy.
Any advice most welcome!