Can you claim back money from them ??

[royalscot]

Im self employed and have to give the tax credit people an estimated income for the following year . I have just realised that i have given wrong estimates by mistake over a five year period . The estimated amounts i gave were the profits i made from self employment when it should have been the total income on which tax is due ie ..... income recieved less personal allowance = total income on which tax is due . I guess the question is ....if the tax credit people can chase people for overpayment from the past surely they can expect to be chased for underpayment aswell ? ....any thoughts ? cheers

[ErikaPNP]

In a word, no. It's your error. In the same manner that they can't claim overpayments if the error was on their part, you cannot claim back monies for periods in which you provided incorrect information, other than the tax year the money falls due. For example, you give them an estimate at the beginning of the tax year, at the end of the tax year, you are given an opportunity to provide them with the true (and final) figure for the year, and it is then that they pay you any monies due.

 

You could of course attempt it, but I wouldn't be optimistic about getting anything.

[royalscot]

Thanks erica , thats made it more clear now