How far back does the tax man look?
Discussion
I've not had the simplest employment / tax position over the past few years, with periods of genuine self employment, unemployment, agency work, permie PAYE role, unemployment and back to agency work, and now back to a permie PAYE role.
I've now got a tax demand, claiming I underpaid last year. Looking at the detail, it looks like the underpayment was due to a carry forward of an underpayment from the year previously. I had a tax return, including all my expenses ready to submit that year, but the revenue sent me a letter taking me off self assessment and putting me back onto PAYE, so I couldn't claim my expenses against the tax for the previous year, hence the underpayment.
Am I likely to get anywhere trying to explain this to them, or do I just bite the bullet and pay the back tax?
I guess they look back as far as they want when it's in their favour, but when it's to your benefit, is there a time bar?
The amount they want is probably about a months take home
I've now got a tax demand, claiming I underpaid last year. Looking at the detail, it looks like the underpayment was due to a carry forward of an underpayment from the year previously. I had a tax return, including all my expenses ready to submit that year, but the revenue sent me a letter taking me off self assessment and putting me back onto PAYE, so I couldn't claim my expenses against the tax for the previous year, hence the underpayment.
Am I likely to get anywhere trying to explain this to them, or do I just bite the bullet and pay the back tax?
I guess they look back as far as they want when it's in their favour, but when it's to your benefit, is there a time bar?
The amount they want is probably about a months take home
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