Introduction
We were approached by a client who had recently realised he had incorrectly reported his occupational pension scheme contributions on his tax return. Whilst the tapering provisions had been considered, he had failed to calculate and report the annual allowance charge (AAC) which applies when total contributions exceed the annual allowance.
Issue
Our client had filed previous year tax returns incorrectly and as there was no AAC reported, had filed these returns with an underpayment of tax.
How we solved it
We worked with our client to understand the position as it stood and how it had been reported to HMRC, compared with the correct position, which needed to be disclosed to HMRC. We assisted with a disclosure to HMRC and agreed a low penalty rate as we were able to demonstrate our client was being co-operative.
The outcome
Our client was confident in knowing that the disclosure had been handled correctly and that the lowest penalty rate possible had been agreed.
Next Steps
If you are concerned about whether the disclosure you have made is correct or not then let ETC Tax take a look.
Leave a Reply