How Often Do HMRC Check Tax Returns & How Do I Avoid It?
If you’re worrying about whether you’ve done enough to appease the taxman this year – you’re not alone. Lots of taxpayers ask: “How often do HMRC check tax returns?” And the answer isn’t wholly reassuring. HMRC…
5 Minute Read
If you’re worrying about whether you’ve done enough to appease the taxman this year – you’re not alone. Lots of taxpayers ask: “How often do HMRC check tax returns?” And the answer isn’t wholly reassuring. HMRC have 1 year from the filing deadline to make enquires in to your tax return.
However, In reality, HMRC can go back and look at your Self Assessment submission using the discovery assessment rules if certain conditions are met. The time ranges from 4 years where an incomplete tax return has been carelessly made, up to 20 years if there has been a deliberate hiding of income.
But don’t let that work you up. There are plenty of ways to appease the taxman and reduce the likelihood of a tax investigation. Simply take the guidance here, and you won’t need to worry about HMRC poring through your accounts.
FILE ON TIME
Any tax returns that arrive after the Self Assessment tax return deadline raise a big red flag with HMRC. You’ll be penalised with an immediate £100 fine for late filing, but you’re also bundled together with taxpayers who are considered disorganised – or worse, dishonest. In the taxman’s eyes, those who can’t meet basic deadlines may make errors elsewhere when it comes to paying what they owe.
As long as you’re hitting the Self Assessment tax return deadline and filing it in the correct manner with accurate figures, you should keep HMRC happy. Digital tax tools can help. GoSimpleTax alerts you well in advance of every deadline, so you never miss a beat.
It’s crucial to declare your expenses clearly on your tax return – but do your research and understand what you can claim for. Unjustified or inaccurate expense listings may bother the taxman. He may decide to investigate potential deceit.
For added security, keep hold of any receipts you’ve obtained throughout the year and store them in a safe place, as this will help to reinforce any expense claims you’ve made. That way, it won’t matter how often HMRC check tax returns: you’ll always be prepared to answer any questions.
A full GoSimpleTax account can be used to upload photographs of receipts, meaning you can snap away whenever you receive one and keep a running log of your expenditure.
IGNORING CERTAIN SOURCES OF INCOME
HMRC need to know about pretty much every penny that comes into your account – regardless of where it’s come from. They will then determine whether you need to be taxed on this income. If you omit any earnings (small or large), it’s like you’re trying to make that decision for them.
If your income doesn’t add up, or regularly logged earnings from previous years are absent on your most recent Self Assessment tax return, the taxman will come knocking. Don’t risk leaving any income out. If you do, get in touch beforehand to explain why.
USE TAX RETURN SOFTWARE
Meeting the Self Assessment tax return deadline, listing accurate expenses and logging all income will significantly reduce the chances of an HMRC investigation. GoSimpleTax – our mobile tax return software – is here to make it all pain-free….
Widely regarded as the best Self Assessment software on the market in terms of usability and dependability, GoSimpleTax cuts the stress out of the way you want to earn. With a free trial of our tax software, you can start inputting your income and expenditure to calculate your tax bill, with guidance and support at every turn. Upgrade for just £46, and you can submit a flawless Self Assessment too.
So stop worrying about how often HMRC check tax returns. Instead, trial our software for free today and ensure you can complete your Self Assessment on time.
Trusted by over 10,000 subscribers
You don't need to be an expert to complete your self assessment tax return.
Managing your finances has never been so easy.
Start you self assessment tax return today for free.Get Started
What Expenses Can I Claim For Working From Home As Self-Employed?
03 Dec 2020
Don’t Be A Grinch – File Before Christmas
26 Nov 2020
A Sole Trader’s Guide To Completing And Filing A Tax Return
25 Nov 2020
How GoSimpleTax Works
Simply register for free with your full name and email address.
Select Your Income
Select the income you receive and follow the hints and tips for potential tax savings.
Validate Your Information
Validate your personal information and submit directly to HMRC to get confirmation in just seconds.
Work Anywhere, With Any Device
Gone are the days of fretting over a calculator surrounded by scraps of paper at the eleventh hour.
GoSimpleTax’s tax return software uses the information you upload in real time to calculate your income and expenditure, working out the tax you owe and sending you helpful notifications when there’s the possibility of a mistake.
"The software is intuitive and proved very easy to navigate. I found the whole process refreshingly simple. I saved a lot of money too!"
"Easy to use and value for money. Everything you need to do your tax."
"It fills in all the forms and sends them to the Inland Revenue. Not expensive either. Takes the stress out of doing your tax return online."