Dealing with errors

What does help sheet C advise on?

Dealing with tax errors

What is an error?

any inaccuracy, omission or misstatement within a client’s tax affairs

What are the steps if you think there is an error in clients tax affairs?

Establish the facts

Assess if this is trivial

Consider if authorisation is required to disclose

Disclose the error

What is a trivial error?

Rounding mistake for example

What are the steps to take if authorisation is required to disclose an error?

request this advise the client on consequences of failing to disclose, then cease to act on their behalf if they still decline

What is the advised quantum of a trivial error?

Amounts less than £200

In what situation does a member not need a clients authority?

if HMRC has overpaid a member

When does HMRC need to be notified re an error on self-assessment return?

If timeframe for amendments has passed.

What does help shee C2 deal with?

Guidance for members in business on dealing with errors in business’ tax affairs

What are errors in businesses tax affairs?

further amounts being owed to HMRC or inaccuracies in the SAO’s certificate on tax acc arrangements

What if their is an error in business?

Establish the facts

Assess significance

Determine if they have authority to disclose

Get authorisation

Disclose

What if a member in business does not have authority to disclose?

Consult the organisation’s internal whistle blowing procedures and take legal advice, follow ML policies.

When may a trivial error need to be disclosed?

If it is recurring

If a busienss refuses to disclose error what action should a Member take?

Provide written advice to colleagues detailing facts, advice and consequences and;

Ensure their conduct and advice are clear and beyond reproach

Consider escalating issue to higher mgmt