Tax Rebates & Refunds

Experts warn of new HMRC tools that can spot incorrect tax returns

January 26, 2013
Posted in Income Tax — Written by Chris

Tax experts are warning that as the tax return deadline approaches (in just a few days), HM Revenue & Customs (HMRC) now has even more tools and technology at its disposal to spot incorrect or fraudulent tax returns.

What this means for individuals and businesses who are registered for self-assessment is that inaccurate or missing information is more likely to be picked up on. This may result in HMRC getting in touch with you for more information, which could delay the processing of any tax rebates you may be due.

Richard Mannion, who is the tax director of Smith & Williamson, explained that HMRC now has far more detail on tax returns than it did a few years ago. He said:

“HM Revenue & Customs is able to cross-reference information with banks and other government departments so it knows what should be coming its way,”

“So if you suspect you may owe some extra tax, tell the taxman and make sure you include details of all unearned income when completing your tax return.”

Mr Mannion also listed some of the pitfalls to watch out for when filing a tax return. He advised businesses to include the interest from offshore bank accounts and inherited offshore investments, as well as income from holiday homes and residential property.

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