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bigduckontax
bigduckontax, Accountant
Category: Tax
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I have received a letter stating HM Revenue have received information

Customer Question

I have received a letter stating HM Revenue have received information from my Bank that there is un disclosed tax on the account I did not declare on Self Assesssment. How do I had out if this is right. The amount quoted does not seem right at all
Submitted: 3 years ago.
Category: Tax
Expert:  bigduckontax replied 3 years ago.
Hello, I'm Keith and happy to help you with your question.

Tell the tax office who sent you the letter that you are not very good at guessing games and would they please come clean and state exactly what bank account is involved and the sums etc upon which they claim no declarations have been made. This sort of letter is par for the course from HMRC. Some years ago my ex Father-in-law received a string of such letters until he took this action. It transpired that a third party had told HMRC that he had received a large sum of money from F-i-l, as indeed he had, and presumably this, according to the Inland Revenue as it was then, was undeclared income. F-i-l had been the executor of someone else's will and the payments were bequests!

This is the first stage of what you must do. Once you have discovered the reason, and maybe something was undeclared, then you can amend your self assessment return. You should be aware, however, that it is you who must self assess if you have income which has not been taxed. You cannot just wait for HMRC to send you a form. Failure to self assess can lead to interest being charged on unpaid tax and also penalties imposed. Of course, if there is no loss of revbenue, then these levies are increasingly unlikely.
Customer: replied 3 years ago.
Thanks for the reply - they have stated the bank name and quoted the following - taxed UK bank and building society. Your tax return shows £0.00 and our information shows £218.38. Untaxed UK bank and building society interest . Your tax return shows £0.00 and our information shows £1,859.02. They are correct I entered £0.00 for both but I cannot understand £1,859.02 what does untaxed interest mean
Expert:  bigduckontax replied 3 years ago.
I am sorry to say I am as confused as you are. The letter from HMRC appears sheer gibberish, not unusual from that organisation. You declared zero, that is clear. Some bank is apparently claiming that they paid you interest un-taxed which seem a trifle odd as they are required to tax at the basic rate unless advised to the contrary. Ask HMRC to make it crystal clear what they are concerned about. At the moment, as I am sure you will agree, it is as clear as mud!
Customer: replied 3 years ago.
Thank you for the reply. Would my bank be able to normally supply me with a report statement stating what taxed and untaxed interest has been paid on my accounts. This I think if seen back to them would clear the situation. The year in question is the return ending April 2012. Many thanks again
Expert:  bigduckontax replied 3 years ago.
Yes, I should have added that you have 9 months in which to amend a tax return, but in this case you are out of time. The bank in question should send you an end of the tax year statement of the interest paid and the tax deducted, if any. That is a statutory requirement, but whether they comply is quite another matter. Unfortunately if they have provided this information they cannot send you a duplicate! They can, of course, by letter tell you what they did.
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Expert:  bigduckontax replied 3 years ago.
Thank you for your support. I do hope it all resolves itself. I fear, though, that you are in for a great deal of letter writing before you are through, but do persevere.

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