Making a mistake on your tax return might fill you with dread, but you shouldn’t be too alarmed. Like most things, there are ways around fixing mistakes, and you could have the chance to correct them.

However, is there still a possibility that you’ll receive a penalty for making a mistake in the first place? To find out more about what happens when you make a mistake on your tax return and how to fix it, continue reading.

Who is Responsible for Mistakes on Your Tax Return?

Ultimately, it’s up to you to ensure no mistakes are made during your tax return. Although you might work alongside an accountant, it still falls on you when a mistake is made. So, regardless of having an accountant, mistakes on your tax return are your liability.

This can be frustrating for many individuals, especially when you put your trust in an accountant to handle your tax affairs. HMRC views accountants as agents (someone working on your behalf).

This means that if any penalties occur with HMRC regarding the mistakes made on your tax return, you’ll be expected to pay, not your accountant. If your accountant made a mistake on your tax return, we advise having a conversation to try and resolve the issue.

It’s also important to understand why the issue was made to ensure it doesn’t happen again in the future. Your accountant making a mistake on your tax return really hones in on the importance of working with reputable and trustworthy accountants – like us, at DH Business Support.

Amending Your Tax Return

Is it possible to amend your tax return? Yes, it is. Thankfully, you can amend your tax return if you notice a mistake has been made. However, it’s important to amend your tax return before the deadline, which is 12 months from January 31st, following the end of the tax year.

It’s important to act quickly once you realise a mistake has been made on your tax return. Whether it’s filling in missed information or correcting an error, amending your tax return as soon as possible is key.

Amending your tax return is relatively straightforward, but how do you do it? This usually depends on how you choose to complete your tax return – online or on paper. To amend a self-assessment tax return, you’ll need to follow a few steps.

Online Tax Return

Log in to HMRC using your Government Gateway user ID
Click your tax account
Choose ‘Self Assessment account’
Click ‘more Self Assessment details’
From the left-hand menu, click ‘at a glance’
Click ‘tax return options’
Choose the correct tax year for the return you wish to amend
Simply go into the tax return and make your amendments

Paper Tax Return

Call HMRC and request the SA100 tax return (paper version)
Include the word ‘amendment’
Include your Unique Taxpayer Reference (found on previous tax returns)
Send the forms off to the address on your paperwork

HMRC provides vital information in regard to making amendments to your tax return. We advise visiting their site for further information if you’re still unsure of how to make amendments to either your online or paper tax return.

The Penalties for Tax Return Mistakes

If your tax return contains mistakes, you could be charged a penalty. Although it’s possible to make amendments to your tax return when you notice a mistake has been made, some people fail to do so by the deadline.

As discussed, the deadline is 12 months from January 31st, but what if you don’t make amendments by this date? If you miss the deadline, you will need to contact HMRC. Penalties differ depending on the type of tax you’re dealing with.

The penalty you could potentially receive depends on how severe the error is. HMRC will likely issue a penalty if:

You made a mistake due to a lack of reasonable care
You made a mistake on purpose
Your mistake was both on purpose and concealed (sending the wrong information and trying to hide the error)

The bottom line is that you should avoid making mistakes to prevent any issues with HMRC. However, if you do make a mistake and miss the deadline to amend the errors, be aware that you could be fined a penalty depending on how serious the mistake was. The worse the mistake, the higher the penalty could be.

Can Penalties be Reduced by HMRC?

Yes, HMRC can reduce your penalty for making a mistake on your tax return. Mistakes shouldn’t be made in the first place, but when they do, it’s how you handle them that determines whether or not HMRC will reduce your penalty. There’s a chance of HMRC reducing your issued penalty if:

You tell them about the mistake as soon as possible
You help them work out how much extra tax is due
You allow HMRC access to check key figures

Preventing Mistakes on Your Tax Return

Preventing mistakes on your tax return is key. If you’re looking for an expert accountant to work with, you’ll be pleased to know that we can help.

At DH Business Support, we have a team of friendly, hard-working, and professional accountants who can help ensure mistakes won’t be made on your tax return.

Working with a trustworthy accountant is vital – especially when you want to avoid issues with HMRC. Our tax experts allow you more time to enjoy your personal life and manage your business.

We understand the importance of finding a reliable and professional accountant to work alongside, which is why our services are available. We have great knowledge in all areas of tax and work to ensure everything is returned on time.

If you’d like to discuss our services further, please don’t hesitate to get in touch with us today! We look forward to speaking with you soon.