Self Assessment Tax Return results in £4,300 refund from HMRC
The MD of a large company with relatively “simple” tax affairs, receiving salary, benefits and dividends from the company as well as paying into the company pension scheme.
Our client had been confidently completing his own tax return for many years, and so was surprised when on this occasion it appeared that he owed HMRC £9,500, which was almost twice what he expected.
Not only that, this increase also put him in the payments on account regime meaning that he would also have to pay a deposit of 50% of his anticipated tax bill for the following year. Or to put it bluntly, give HMRC an additional £4,750 on top of this £9,500 a full year before it would normally be due.
We completed a free review of the tax return for them to check the calculations.
On finding that the wrong information had been entered with regards to pension contributions for the year we were quickly able to correct our client’s tax return, reducing his liability to £5,200 and removing the payments on account requirement.
As our client had already paid the full £9,500 to HMRC we were able to arrange a refund, which he received into his bank account 2 weeks later!
One very happy client who is £4,300 better off and has asked us to look after his tax returns going forward as he now understands the value of an expert pair of eyes, as well as the time and stress it saves him.