Post
by worriedsoul » Wed Mar 02, 2016 12:19 pm
Hi All,
I have my ILR PEO appointment on 5 March 2015 at Croydon. I am working as a Limited Company director from April 2013 onwards. I was a full time permanent employee for 2 years before than. So my fist extension in 2012 was a straight forward one, second extension in March 2014 was via limited company salary + dividends. All good till here. Apologies for the long story below, but I am having sleepless nights because of this. I hope someone can give me some positive thoughts!!
In the financial year April 6 2013 to April 05 2014, I was employed by company as the Director. However for the first month i.e. April 2013 I was also employed by my previous employer. When I started work from my Limited Company I had not yet received a P45 from previous employer. At the end of the year, my accountant generated a P60 which only had employment details from my company and unfortunately only this income was declared on my Self-Assessment for 2013-2014. All income from the company (salary of £9439 + dividend of £33333) was accurately declared on the Self-Assessment form and same was declared on extension application as well, so I am not deceiving anyone here. I paid the tax amount of £223.73 as calculated by my accountant on the income declared.
The oversight on my part was excluding the previous employment from April 2013 (overlap of 1 month) as I only referred to my P60 while filling the form. Please note that the tax for the previous employment (£342.40) has been paid via PAYE by the previous employer (This is reflected on the HMRC employment history record). In Sept 2014, my accountant received a letter from HMRC with tax calculation and underpaid tax notice for £305.68. The tax calculation from HMRC showed the total salary from both employments. I have duly paid the tax amount of £305.68 on 15 Oct 2014 via check payment (account debited on 23 Oct 2014). HMRC have confirmed receipt of this underpayment. As I paid the underpaid tax, I assumed that everything is in order. I recently telephoned HMRC to check if anything else needs to be done and they said nothing more is required as they would have written a letter to me if that was the case.
However on checking with my accountant recently, I was advised that I will need to submit an amended Self-Assessment for the year 2013-2014 as the previous employment was not included in the first return although the underpaid tax has been paid. Now I have only 2 days left for my PEO appointment, should I send an ammended tax return for that year or would it be worth taking a risk and going ahead with the PEO appointment as is?