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Where Taxpayers and Advisers Meet

Tax Accountant Needed?

Fred2130
Posts:1
Joined:Thu Feb 06, 2020 12:53 pm
Tax Accountant Needed?

Postby Fred2130 » Thu Feb 06, 2020 1:11 pm

Hi,
I work as a UK employee and have been on PAYE for the past 15 years or so.
A long time ago I estimated my yearly expenses at around £1000, and have always left this amount in as an assumption on returns (or even when I didn't put returns in when filing was not needed and it was done automatically).
Whilst this amount may have been accurate a long time ago, to be honest it may have been much lower in the past years (need to check). And it probably fluctuated over time. Concerned I also don't really have receipts to prove this claim if I'm ever audited. Also, now looking at this, I'm not even sure if I have calculated this correctly as I think the 'job expenses amount' I put in should have been not the actual expenses, but the proportion that I would have paid tax on. So I have a few questions which hopefully you can help me determine whether I need to see a professional or if it's not too hard to figure out what to do:
1.Is the amount to put in for expenses the total expense amount (eg., calculating milage allowance or total of other expenses such as working from home @£4 per day), or does this total need to be multiplied by the tax rate I pay and then entered?
2.Is it worth going back and correcting my past years returns for accuracy? If I lower the amounts, will HMRC look to get their moneys back? If I claimed £1000 more than I should have for the past 15 years, I guess this would add up to quite a bit. Is it worth opening this can of worms and if so how many years of returns do I need to go back to correct?
3.On a separate question, my wife stopped working a year ago. I have never seen that there is a link between her and my tax account, but is it worth looking into tax releif I could get as a result of her not working?
4.My job pension statement states that I'm responsible to make sure pension contributions fall within the right limit and to report these to HMRC. I don't know how to go about this.
The above are just what I know...there may be other topics I don't know and this is why I was asking if you think it's worth getting a tax accountant. Or since I'm on PAYE these issues can be fairly easily addressed by myself. When looking online at options many of these people seem to be focused on 'company services' as opposed to personal situations like mine. Do you know if I should be looking for a specific type of accountant, if you think this is needed?
Thanks very much for your advice. :)
Fred

jerome.lane
Posts:237
Joined:Mon Aug 12, 2019 8:41 am
Location:Sandhurst, Berkshire
Contact:

Re: Tax Accountant Needed?

Postby jerome.lane » Fri Feb 07, 2020 12:34 pm

It seems you're not really clear if you've overstating job related expenses for the last fifteen years so it might be more pragmatic to review the last few years and then take a view.
1. You should enter the full amount of expenses not reimbursed and then you'll achieve tax relief at 20 or 40%, so £1,000 claimed is £200 or £400 loss to the revenue at the very worst per annum.
2. I'd suggest taking a commercial approach - a brief review and then correction of any obvious mistakes in last few years. HMRC have had the opportunity to enquire and I doubt you'll have all the information you need for the last 15 years.
3. Yes!
4. Do you currently submit tax returns?

I do think you should take advice and get your tax position reviewed, although you might not need ongoing services. Feel free to contact me directly.

Good luck!
Jerome Lane
Tax Adviser
Telephone: 07943 005902


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