Should I be complaining about this accountant/situation?

[Qualified Lead]

Hi all,

Thanks everyone for your previous replies to this old thread. Sorry to bring it back.

We have done a deep dive into our books for the last few years and found we have massively overpaid on tax. As in, we didn't use any of the legitimate ways to save on tax - ways our accountant should have used. We just paid top whack in every possible way. And we're behind on a lot of payments as a result (e.g. PAYE).

I was curious if there is anything that can be done to remedy past submissions of PAYE and Corporations Tax to bring about a more favourable situation?

For PAYE I would imagine- no. But what is the scope to make changes?

Would we be better off simply starting from scratch, knowing what we know, lesson learned?

I know this is a hard question to answer- just looking, again for what scope there is to make changes to previously submitted returns etc.

Best wishes

 

[UK Contractor Accountant]

We have done a deep dive into our books for the last few years and found we have massively overpaid on tax.

what have you found?

 

[Newchodge]

Hi all,

Thanks everyone for your previous replies to this old thread. Sorry to bring it back.

We have done a deep dive into our books for the last few years and found we have massively overpaid on tax. As in, we didn't use any of the legitimate ways to save on tax - ways our accountant should have used. We just paid top whack in every possible way. And we're behind on a lot of payments as a result (e.g. PAYE).

I was curious if there is anything that can be done to remedy past submissions of PAYE and Corporations Tax to bring about a more favourable situation?

For PAYE I would imagine- no. But what is the scope to make changes?

Would we be better off simply starting from scratch, knowing what we know, lesson learned?

I know this is a hard question to answer- just looking, again for what scope there is to make changes to previously submitted returns etc.

Best wishes

For PAYE, if the information filed with HMRC was correct, then you cannot amend. If you want to change the amount you were actually paid, that would be re-writing history and is not appropriate. If HMRC were told you were paid an amount that differs from the amount you received, then you can correct.

 

[Bobbo]

As in, we didn't use any of the legitimate ways to save on tax - ways our accountant should have used.

Such as what?

It is impossible to comment on what, if anything, can be done about it if you don't say what "legitimate ways" you believe were not used.

 

[boxlot]

This is the difference between accountant and good accountant.

 

[Daybooks]

If I understand what you are saying then you have paid the correct amount of tax but this could have been less had you have arranged your affairs differently.

This is different from not claiming tax relief for something legitimately incurred that was allowable. For example incurring allowable expenses but excluding them from the tax computation or perhaps incurring legitimate research and development expenditure but not claiming Research and Development tax relief.

You cannot now retrospectively reclassify expenditure so as to gain a tax advantage unless the original expenditure was genuinely incorrectly classified. For example if you paid yourself a salary and now wish to call that payment a dividend then that would amount to false accounting. Contemporaneous records are essential.

In respect of payroll and thus Pay As You Earn you would have reported the correct figures under Real Time Information and were responsible for their accuracy. Therefore to now suggest that the tax deductions were incorrect or even that the wage or salary payments were in fact something else is not credible.

If there are genuine errors that resulted in overpayment of taxes and this is supported by contemporaneous records then there are options to amend tax returns. If however the past is correct but you have the opportunity to conduct business in a more efficient tax way in the future then do so and benefit going forward.

 

[MyAccountantOnline]

Hi all,

Thanks everyone for your previous replies to this old thread. Sorry to bring it back.

We have done a deep dive into our books for the last few years and found we have massively overpaid on tax. As in, we didn't use any of the legitimate ways to save on tax - ways our accountant should have used. We just paid top whack in every possible way. And we're behind on a lot of payments as a result (e.g. PAYE).

I was curious if there is anything that can be done to remedy past submissions of PAYE and Corporations Tax to bring about a more favourable situation?

For PAYE I would imagine- no. But what is the scope to make changes?

Would we be better off simply starting from scratch, knowing what we know, lesson learned?

I know this is a hard question to answer- just looking, again for what scope there is to make changes to previously submitted returns etc.

Best wishes

You can correct errors but you it must be an error not something you could have done to save tax.

As others have asked what exactly happened to 'massively' over pay tax?