How to Amend Your Tax Return If You Make a Mistake?

Mistakes happen, especially when dealing with something as complex as a Self Assessment Register Online. Whether you’ve discovered an error in your income declaration, missed out on claiming an allowance, or simply entered the wrong figures, correcting a tax return is a straightforward process if you know the steps. This comprehensive guide will walk you through everything you need to know about amending your tax return, ensuring you stay on the right side of HMRC and avoid potential penalties.

Understanding the Importance of Accurate Tax Returns

Before diving into the process of amending your tax return, it’s crucial to understand why accuracy is so important. When you submit a Self Assessment tax return, HMRC relies on the information you provide to calculate your tax liability. Any inaccuracies can lead to overpaying or underpaying your taxes managed by BNA Consulting, which might result in fines, interest charges, or even legal consequences.

Inaccurate tax returns can also trigger an investigation by HMRC, which is something every taxpayer wants to avoid. An investigation can be stressful, time-consuming, and costly, even if the mistake was unintentional. By promptly correcting any errors, you demonstrate your commitment to compliance, potentially mitigating any negative fallout.

Common Mistakes on Tax Returns

Let’s start by identifying some common errors that taxpayers often make on their Self Assessment tax returns. Knowing these can help you spot potential mistakes and understand why it’s vital to amend your return if needed:

1. Incorrect Income Declaration: This might involve forgetting to include all sources of income, such as freelance work, rental income, or dividends.
2. Missed Allowances or Deductions: Failing to claim eligible allowances and deductions, like the Personal Allowance, business expenses, or pension contributions, can result in a higher tax bill than necessary.
3. Wrong Figures Entered: Simple typos, like swapping numbers or placing a decimal point incorrectly, can significantly alter your tax calculation.
4. Overlooking Tax Reliefs: Tax reliefs for things like charitable donations or certain investments might be missed if you’re not careful when completing your return.
5. Incomplete Information: Leaving out required information, such as details about savings or foreign income, can lead to errors that need correcting.
6. Claiming Ineligible Expenses: Conversely, if you’ve claimed expenses that aren’t allowed, you’ll need to correct this to avoid penalties.

When Can You Amend Your Tax Return?

If you’ve identified an error, the good news is that you have a window of time to amend your tax return. You can make corrections to your return within 12 months of the original filing deadline. This means:

• For a tax return submitted for the 2022/2023 tax year, which had a filing deadline of January 31, 2024, you can amend your return until January 31, 2025.

It’s essential to act within this time frame. After the 12-month window, you’ll need to write to HMRC to explain why you need to make further changes, which can be a more cumbersome process.

How to Amend Your Tax Return Online

Now, let’s get into the step-by-step process of amending your tax return online. The process is straightforward if you follow these steps:

Step 1: Log into Your Government Gateway Account

The first step is to log into your HMRC Government Gateway account. This is the same account you used to submit your original Self Assessment tax return. You’ll need your User ID and password, so make sure you have these details handy.

If you’ve forgotten your login details, don’t worry—HMRC provides options to recover your User ID and reset your password. Just follow the on-screen instructions.

Step 2: Access Your Submitted Tax Return

Once logged in, navigate to the Self Assessment section of your account. Here, you’ll find a summary of your submitted tax returns. Select the tax return for the year you wish to amend.

For instance, if you made an error on your 2022/2023 tax return, click on the option to view or amend this specific return.

Step 3: Choose ‘Amend Return’

After selecting the relevant tax return, you’ll see an option to ‘Amend Return.’ Click this to begin the amendment process. This will open up the tax return form, allowing you to make changes to any section where you’ve identified an error.

Step 4: Make the Necessary Corrections

Now, go through your tax return carefully, focusing on the areas where mistakes were made. Whether it’s adjusting your income figures, adding missed deductions, or correcting any other information, ensure that your amendments are accurate.

• Correcting Income: Navigate to the section where you originally entered your income. Make sure all sources of income are included and that the figures are accurate. Don’t forget to double-check any supplementary sections for income like dividends, rental income, or foreign earnings.
• Claiming Deductions and Reliefs: If you missed claiming any deductions or reliefs, go to the relevant section and input the correct amounts. For example, if you forgot to claim a tax relief on pension contributions, find the section on pensions and add the necessary information.
• Updating Expenses: If you claimed too much or too little in expenses, adjust the figures accordingly. For self-employed individuals, this might involve revisiting your business expenses to ensure all allowable costs are correctly accounted for.

Step 5: Review Your Amendments

Before submitting your amended return, take the time to review all the changes you’ve made. This step is crucial to ensure that no further mistakes have been introduced during the amendment process.

Consider using HMRC’s online tools or a tax calculator to check your figures. If in doubt, it may be wise to consult a tax professional to ensure your return is accurate.

Step 6: Submit the Amended Tax Return

Once you’re satisfied that all amendments are correct, go ahead and submit your updated tax return. After submission, HMRC will reprocess your return and send you an updated tax calculation.

Amending a Paper Tax Return

If you originally filed your tax return on paper rather than online, you can still make amendments, although the process is slightly different.

Step 1: Get a New Tax Return Form

You’ll need to download a new copy of the Self Assessment tax return form (SA100) from the HMRC website or request one to be sent to you. On the form, you’ll need to indicate that it’s an amended return.

Step 2: Complete the Form with Corrected Information

Fill out the form with the corrected information. Remember to only change the sections where you made an error—there’s no need to re-enter information that was correct on your original return.

Step 3: Write “AMENDED” on Each Page

To clearly indicate to HMRC that this is an amended return, write “AMENDED” at the top of each page. This helps ensure that your corrections are processed accurately.

Step 4: Send the Amended Return to HMRC

Once completed, send the amended tax return form to the same address where you sent your original return. Keep a copy for your records, just in case there are any issues.

What Happens After You Amend Your Tax Return?

After you submit your amended tax return, HMRC will process the changes and send you an updated calculation of your tax liability. Depending on the nature of your amendments, this could result in:

1. An Additional Tax Bill: If your amendments increase your taxable income, HMRC will issue an updated bill for the additional tax owed. You’ll need to pay this by the specified deadline to avoid interest charges.
2. A Tax Refund: If your amendments result in overpaid tax, HMRC will issue a refund. This could be due to newly claimed allowances, deductions, or corrected income figures.
3. No Change: In some cases, your amendments might not affect your tax bill, especially if the corrections were minor. However, it’s still important to submit the amendments to ensure your tax records are accurate.

Avoiding Future Mistakes on Your Tax Return

Amending a tax return can be time-consuming, so it’s worth taking steps to avoid mistakes in the first place. Here are some tips to help you get your return right the first time:

1. Start Early: Avoid the last-minute rush by starting your tax return well before the deadline. This gives you plenty of time to gather all necessary documents and double-check your figures.
2. Keep Detailed Records: Good record-keeping throughout the year makes completing your tax return much easier. Keep track of all income, expenses, and relevant documents as you go.
3. Use Tax Software: Consider using tax software to help you prepare your return. These tools often have built-in checks and can help you avoid common errors.
4. Consult a Tax Professional: If your tax situation is complex or if you’re unsure about certain aspects of your return, it’s worth consulting an accountant or tax advisor.
5. Review Before Submission: Always review your tax return thoroughly before submitting it. Double-check all figures, ensure all relevant sections are completed, and look out for common errors like incorrect income amounts or missed deductions.

What If You Miss the Amendment Deadline?

If the 12-month window for amending your tax return has passed, you can still correct your return, but the process is different. You’ll need to write to HMRC, explaining why you want to make changes and providing evidence to support your case.

HMRC is generally understanding if the mistake was genuine and the correction is necessary to accurately reflect your tax liability. However, the process can take longer, so it’s best to