Disclosure of the case to HMRC

Introduction

We were contacted by a client who recently realized that they had incorrectly declared their workplace pension contributions on their tax return. Although the degressive provisions were taken into account, he had not calculated or declared the annual allowance (AAC) which applies when the total contributions exceed the annual allowance.

Issue

Our client had filed prior year tax returns incorrectly, and because no AAC had been reported, he filed those returns with an underpayment of tax.

How we solved it

We worked with our client to understand the position as it existed and how it had been reported to HMRC, compared to the correct position, which needed to be disclosed to HMRC. We assisted with disclosure to HMRC and agreed a low penalty rate as we were able to demonstrate that our client was cooperative.

The result

Our client was confident in knowing that the disclosure had been handled correctly and that the lowest possible penalty rate had been agreed.

Next steps

If you are wondering whether or not the disclosure you made is correct, let ETC Tax take a look.