TAX RETURNS - 28.11.2016

Correction: voluntary return refunds article

In yr.3, iss.5, pg.12 (see Follow up ), we reported on a time-limited opportunity to submit late returns that contained calculations of tax refunds due. Unfortunately, this article contained some errors which we would like to correct.

The article implied that only “voluntary” returns could be processed; however, the Higgs case concerned a return which was in fact requested by HMRC, but was submitted late. The case considered whether the time limit imposed by the legislation actually applied to submitted tax returns or not, and found that it only applied to HMRC assessments. The tax return being considered was also for 2006/07 and not for 2012/13 as stated, and Mr Higgs had made a payment to cover what he thought the tax would be - that transpired to be too high. He was therefore seeking to claim back the difference by filing the return, which HMRC refused to process on the grounds of being out of time.

HMRC’s official line is that the limited opportunity to file late returns will only apply where a formal request has been made, i.e. not voluntary returns. However, we feel that this is at odds with its long-accepted practice of treating both types of return on an equal statutory footing, and so our advice is that there is nothing to lose in submitting voluntary returns and arguing the point if it is rejected.

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