Section 4 - Your Questions Answered - Frequently asked questions
These questions and answers appear on the leaflet we issue to many customers at the start of an enquiry. You may have already read our leaflet, if so you can go directly to Here are some questions answered that are not in our leaflet
Why are you enquiring into my tax return or claim?
Each year we select some returns and claims for an enquiry. It is your responsibility to ensure that the entries on your tax return or the details in your claim are right. We enquire into returns and claims to check that they are right. We want to make sure you do not pay too much tax or too little. We also want you to feel confident that other taxpayers are paying what they should and that we operate the tax system fairly.
Why don 't you just phone and ask me?
We should tell you if we are checking your entries on the tax return, or any amendments you have made to it, or any claim you have made. The normal way we do this is to open a formal enquiry by writing to you.
Why are you asking for information that your office may already have?
If we ask for a figure on the return it is your responsibility to put it on the return even if you think we may have received the information from someone else, such as your employer. As part of our enquiry we may need to ask for more information so that we can check the figures you put on your return or claim are correct.
Why have you taken so long to ask me these questions?
A lot of returns come to us around the same time of year. We plan our
work to cover the entire year. This means that some enquiries will not
be made until some months after the return or claim was sent to us.
For returns, we are allowed up to12 months after the "filing date"
to open an enquiry. The "filing date" is normally 31 January.
That means, for a 2001/2002 tax return, received by 31 January 2003, we
have until 31 January 2004 to begin our enquiries.
We may have longer if you were late sending us your return.
What if I can 't remember what I put on the tax return or claim?
We can give you a photocopy of your tax return/claim, or a printout of the entries if you filed your return electronically. Just ask us.
What if I can 't find some of the information you are asking for?
Send what you have, within the time we gave you when we asked for it.
Tell us why you don't have the rest of the information and what you are
doing about this. Don 't ignore any request we send you. If we don 't
hear from you we may make a formal request for the information. We can
charge you penalties if you ignore a formal request.
It is your responsibility to keep information and documents about all the figures you need in order to complete your return properly or make a claim.
What happens when you receive the information?
We check that you have sent us everything and then compare it with what you put on your return. If we need you to clarify something or to give us more information, we will write or telephone and ask you.
What happens if I want to change anything in my return or claim?
You should tell us as soon as possible. We will consider what you say and make any changes we have agreed with you at the end of the enquiry.
What happens at the end of your enquiry?
We normally issue a formal "closure notice". The closure notice
will give our conclusions. In our conclusions we will explain any changes
that we feel are needed to your return or claim, or we will say that no
change is needed.
If we think changes are needed, the closure notice will make those changes
to your return or claim and it will include a revised calculation.
We hope that what we have told you during the enquiry will help you to complete your next tax return correctly.
What if I do not agree with the figures or what you have said in the closure notice?
You can appeal against our conclusions or any amendment that we have made, using the appeal form that comes with the closure notice, or by writing to us, within 30 days of the issue of the notice.
You should write to us straight away if you want to make a late appeal (after the normal 30 days), giving us the reasons for your delay.
What if I have paid too much tax?
In most cases we will have made a repayment based on the entries in your return, soon after we received the return. If a repayment, or a further repayment, is due to you after our enquiry we will repay you as soon as possible and you may be due some interest.
What if there is more tax to pay?
Unless you appeal within 30 days and ask for some, or all, of the tax to be postponed, this tax will be due in full by the "filing date" (normally 31 January when your return was due), or within the next 30 days, whichever is later.
Will I have to pay interest on the additional tax?
Interest is automatically charged on tax that is paid late. It is late if it is paid after the filing date (normally 31 January when your return was due). Even if you pay all of any extra tax within 30 days of receiving the enquiry closure notice, interest will still be charged if this is after the filing date.
When is the whole process considered final?
When either:
1) 30 days have passed since the issue of the `Closure notice 'and you
have not made an appeal, or
2) Your appeal has been settled by negotiation between us or at an appeal hearing.
What if I can't pay all the tax at once?
You need to talk to us about this as soon as possible.
Payments are dealt with by different people from those who make enquiries
about returns or claims. If you do not know which office normally deals
with your payments let us know and we can put you in touch with the right
office.
They may be able to accept instalment payments but first you will be asked detailed questions to establish whether any hardship exists because of your personal circumstances.
And if I don't understand what is going on?
If there is anything that you don't fully understand during the enquiry,
please telephone the person who wrote to you. Their direct line number
is at the head of the letter. If they are not available someone else in
the office will help you.
If you feel that a meeting would help, we will try to arrange one at a time to suit you.
What if I want to complain about the enquiry?
When you have a complaint, it is usually best to contact the person you have been dealing with. You may however prefer to contact that person's immediate manager or the person in charge of the office. If you wish to do this we will tell you whom to contact.
Here are some questions that are not in our leaflet
Do I have to let you have my private account details?
You will have to provide your private account details if they are needed to decide whether your return is correct and complete.
This will depend on what is in your return, what should be in your return and what you use your accounts for.
Private accounts may be bank, Building Society, credit card accounts or details from all financial institutions.
Some examples of when we will ask you for private account details are:
- if you paid any business expenditure from them or in the case of bank or building society accounts if you have paid business receipts into them.
- if your business records do not show an accurate record of your personal drawings from the business.
- if you had not told us about all your income on your return and your private account details will help us work out how much extra income you had.
We cannot tell you here all the times when we might ask for private account details. This will depend on each enquiry.
We can only ask for these details if they are relevant to our enquiry and to the return.
If we send you a formal notice asking for your account details, you can appeal if you think we are being unreasonable. The formal notice will tell you how to appeal.
The same rules apply if our enquiry is into a claim you have made not in a tax return.
Do I have to attend a meeting?
Although no one can make you attend a meeting it is often the best way to sort out any points which you think the officer has not understood. A meeting may help bring the enquiry to an end more quickly. It will give you the opportunity to explain things, for example, how you run your business and keep your records. When you are invited to attend a meeting you will be sent an agenda so you will know beforehand what will be discussed.
You can ask to see the officer dealing with your enquiry, if you think a meeting is the easiest way forward but the officer has not suggested it.
The length of an enquiry varies depending on how complex your tax return, your claim or your business is. We try and deal with correspondence promptly and ask that you reply to our letters as soon as you can.
You may have to pay a penalty if:
- your tax return was received late.
- we did not ask you to make a tax return but you should have told us you had tax to pay.
- your return or claim was wrong because you did not take enough care to get it right.
For more information about penalties see the Penalties section
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