How to Correct Mistakes on Your Self Assessment Tax Return

Filing a Self-assessment tax return can be daunting, and errors are not uncommon. Whether these are simple misreportings of income or incorrect claims for allowances, it’s essential to address them promptly. This guide will explain how to correct mistakes on your Self Assessment tax return, detail the deadlines for making these corrections, and discuss the implications of not correcting errors. Additionally, we’ll highlight how QAccounting can support you in ensuring your tax return is accurate.

Common Mistakes on Self-Assessment Tax Returns

When completing Self-Assessment tax returns, several common errors can occur. These mistakes can range from minor to significant and include:

• Misreporting income or expenses: This could be due to simple oversights or misunderstandings of what counts as taxable income.
• Omitting sources of income: Forgetting to declare all income sources is a frequent error, especially if you have multiple streams of income.
• Incorrectly claiming allowances or reliefs: It’s easy to misunderstand eligibility for certain tax deductions or to calculate them incorrectly.

Recognising these potential pitfalls is the first step towards rectifying them.

How to Correct Errors on Your Self-Assessment

If you find a mistake after submitting your tax return, you can correct it by following these steps:

Online Amendments

Log into your HMRC online account: Access the account where you submitted your return.
Select the tax year you want to amend: Find the return that contains the error.
Make and submit the changes: HMRC’s online system allows you to change your return directly.

Amendments for Earlier Years

For tax years that are no longer within the online amendment window, you need to notify HMRC in writing. Include your Unique Taxpayer Reference (UTR), the year of the return, and the specific changes that need to be made.

Deadlines for Amending Your Self Assessment

The deadline for amending a Self Assessment tax return is 12 months from the 31st January following the end of the tax year in question. For example, for the 2020/2021 tax year, which ended in April 2021, you have until 31st January 2023 to make amendments. It is crucial to adhere to this deadline to prevent potential penalties and interest charges.

What Happens If You Don’t Correct Mistakes?

Failing to correct errors on your tax return can lead to several negative consequences, including:

Penalties and interest: If the mistake leads to an underpayment of tax, HMRC may impose penalties and interest from the date the tax was due.
Audits: HMRC may select your return for an audit if discrepancies are found, leading to a more thorough investigation into your tax affairs.It is, therefore, imperative to review and amend any mistakes as soon as they are discovered.

How QAccounting Can Help with Self-Assessment Amendments

At QAccounting, we specialise in assisting clients with their Self Assessment needs. Our services include:

• Reviewing tax returns for errors: Before submission to ensure accuracy.
• Correcting mistakes: Handling the amendment process smoothly and efficiently.
• Communicating with HMRC on your behalf: Managing correspondence to resolve any issues.

FAQs

Can I correct my Self Assessment tax return after the deadline?

You may correct errors after the deadline in certain circumstances, but this can lead to penalties unless you have a reasonable excuse.

Will HMRC penalise me if I made an honest mistake?

If you correct the mistake promptly, HMRC is less likely to impose penalties, especially if it’s clear that the error was made in good faith.

How long does it take to process an amended return?

It typically takes HMRC up to eight weeks to process an amended return, depending on the complexity of the changes.

Correcting errors on your Self Assessment tax return is crucial for maintaining compliance with HMRC regulations and avoiding unnecessary penalties. By understanding the process and deadlines for amendments, you can ensure your tax affairs are correct and up to date. Contact QAccounting today for expert assistance with your Self Assessment tax return, ensuring accuracy and compliance with HMRC requirements.