Will my error trigger an audit?

Will my error trigger an audit?

Postby 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!
maisie
 
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Joined: Mon Apr 26, 2010 7:41 am

Re: Will my error trigger an audit?

Postby robbob on Mon Apr 26, 2010 8:41 am

Hello maisie

All you need to do is make an amendment to your self assessment return.
I would not imagine that aa amendment would mean a massive increase in your chances of being selected for investigation.

As far as making the corrections there are details on the following link
http://www.hmrc.gov.uk/sa/correct-repay.htm
robbob
 
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Re: Will my error trigger an audit?

Postby maisie on Mon Apr 26, 2010 8:12 pm

Well, having gone through the whole return with a fine toothed comb, I'm now not sure about some of my classifications of expenses. I have some things like cleaning and decorating under 'cost of services provided' instead of 'maintenance and repairs'. Should I correct that too? Does it matter? I'm also not sure about the gas safety check - where would this fall?
*I hate tax*
maisie
 
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Joined: Mon Apr 26, 2010 7:41 am

Re: Will my error trigger an audit?

Postby mullet on Mon Apr 26, 2010 10:11 pm

It doesn't really matter whether you put expenses in the correct "classification" box. The main thing is getting the profit or loss right. Just amend the return (a simple letter or a full return will suffice). If there is no material tax effect the additional risk of being selected for enquiry is minimal.

In strictness the cost of the first gas safety check prior to letting is not allowable, but subsequent renewal checks are allowable. But in practice the amounts are really too small to worry about.
mullet
 
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