Tribunal Accepts Employer Made Error On P60 But Fine Stands
With the tax return deadline drawing close we read with interest a report by accountingWeb on an employee who was fined by HMRC for submitting his tax return using his P60 which was issued by his employer, it was found that the employer had made an error on the P60.
The tribunal found that the error in his P60 was the fault of his employer, the mistake meant that earnings between April and August were not included on his P60, he used the figures on this P60 for his tax return.
The tribunal looked in to whether he was careless when filing the return (the law defines the term careless as a failure to take reasonable care), the tax payer claimed he queried his P60 with his employer when he noticed the pay was low but was told it was correct. HMRC argued that the error on the P60 was not in dispute however he should have known what his true income was. He could have added his payslips together or contacted a professional for assistance but didn't, therefore the result was that he completed an incorrect tax return and was fined £694.15.
The tribunal concluded the tax payer made an honest mistake but noted that the law “does not provide a shelter for honest mistakes.’
We have sympathy with this tax payer, it is all too easy to oversee something on your tax return. Cashtrak not only complete and file tax returns but are able to give advice on the figures, we check the figures to ensure they are incorrect and we can advise on missed savings. We understand that paying for something you can do yourself may seem counter intuitive however it is our guidance, expertise, experience and your peace of mind you are paying for. And not to forget we are a multi-award winning practice, Cashtrak are the current Institute of Certified Bookkeepers Large Practice of The Year – the Institute of Certified Bookkeepers are the largest bookkeeping institute in the world!
Cashtrak offer a 5 step service which ensures easy, hassle-free tax returns.