{"id":775,"date":"2022-05-16T13:50:41","date_gmt":"2022-05-16T13:50:41","guid":{"rendered":"http:\/\/woocommerce-1071917-3751140.cloudwaysapps.com\/?p=775"},"modified":"2022-07-13T09:14:47","modified_gmt":"2022-07-13T09:14:47","slug":"does-hmrc-make-mistakes-and-what-happens-if-they-do","status":"publish","type":"post","link":"https:\/\/taxtribe.co.uk\/does-hmrc-make-mistakes-and-what-happens-if-they-do\/","title":{"rendered":"Does HMRC Make Mistakes \u2013 and What Happens if they Do?"},"content":{"rendered":"

When you\u2019re filling out your tax return, you double- and triple-check to make sure you don\u2019t get anything wrong. Nobody wants to be in trouble with HMRC!<\/span><\/p>\n

Of course, mistakes do happen, and you <\/span>shouldn\u2019t be penalised<\/span><\/a> if a genuinely innocent error is discovered. But it can still mean a lot of stress and inconvenience, and you\u2019ll have to pay any tax that\u2019s been overlooked as a result of your slip.<\/span><\/p>\n

But you\u2019re not the only one who can get it wrong when it comes to tax. After all, HMRC is run by human beings, and humans make mistakes. In this post, we\u2019ll take a brief look at the kind of errors that can affect you and your business, and how they are fixed.<\/span><\/p>\n

Overpaid and underpaid tax<\/b><\/p>\n

This is a very common issue. In fact, if it hasn\u2019t already happened to you, you probably know at least one person that\u2019s been affected.<\/span><\/p>\n

In the best-case scenario, HMRC might have been charging you too much tax. Perhaps your circumstances have changed; maybe they have the wrong information on file, or they\u2019ve simply miscalculated. In this case, you\u2019ll receive a refund for the overpaid tax. Sometimes this is automatic, but sometimes you\u2019ll need to apply for it yourself \u2013 which is why it\u2019s important to keep a careful eye on your records.<\/span><\/p>\n

The best way to avoid drawn-out, stressful and potentially costly issues \u2013 and missing out on a fat refund \u2013 is to stay on top of your finances. Even if you\u2019re a sole trader, a tax advisor can save you time and money by heading off issues before they occur.<\/span><\/p>\n

Gremlins in the system<\/b><\/p>\n

Over- and underpayment is a consistent problem with HMRC, and a mistake can usually be traced back to a straightforward error. But sometimes things just go wrong for no reason in particular. Maybe it\u2019s a blip in the IT system, a bit of paperwork that has slipped through the cracks, or plain old human error, such as inaccurate data entry.<\/span><\/p>\n

This is a particular hazard when it comes to PAYE, where the wrong tax code or outdated information can result in an employee overpaying or underpaying for an extended period of time. But even self-employed people can end up being affected by the gremlins.<\/span><\/p>\n

One thing\u2019s for sure: if you\u2019ve been paying too little tax, you\u2019ll have to rectify that eventually. On the other hand, if you\u2019re overpaying because you\u2019ve missed out on claiming <\/span>allowable expenses or tax relief<\/span><\/a>, that can continue indefinitely unless you take proactive measures. And you can only make a claim for repayment within four years of the end of the relevant tax year, so you need to move fast.<\/span><\/p>\n

Ultimately, the best way to ensure you pay the right amount of tax and stay in HMRC\u2019s good books is to get professional help. Our friendly tax advisors can help you claim the right expenses, make sure your tax return is accurate, and talk to HMRC for you if necessary. Just <\/span>contact us<\/span><\/a> for a free, personalised quotation.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

When you\u2019re filling out your tax return, you double- and triple-check to make sure you don\u2019t get anything wrong. Nobody wants to be in trouble with HMRC! Of course, mistakes do happen, and you shouldn\u2019t be penalised if a genuinely innocent error is discovered. But it can still mean a lot of stress and inconvenience,…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"rank_math_lock_modified_date":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-775","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"acf":[],"_links":{"self":[{"href":"https:\/\/taxtribe.co.uk\/wp-json\/wp\/v2\/posts\/775"}],"collection":[{"href":"https:\/\/taxtribe.co.uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/taxtribe.co.uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/taxtribe.co.uk\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/taxtribe.co.uk\/wp-json\/wp\/v2\/comments?post=775"}],"version-history":[{"count":1,"href":"https:\/\/taxtribe.co.uk\/wp-json\/wp\/v2\/posts\/775\/revisions"}],"predecessor-version":[{"id":776,"href":"https:\/\/taxtribe.co.uk\/wp-json\/wp\/v2\/posts\/775\/revisions\/776"}],"wp:attachment":[{"href":"https:\/\/taxtribe.co.uk\/wp-json\/wp\/v2\/media?parent=775"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/taxtribe.co.uk\/wp-json\/wp\/v2\/categories?post=775"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/taxtribe.co.uk\/wp-json\/wp\/v2\/tags?post=775"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}