We all make mistakes and unless you’re in the tax trade it can be especially true for your self-assessment tax return. Earlier Year Corrections (EYC) are a way to correct any errors from previous years on your self-assessment tax returns. They can be used to adjust errors in your income, expenses or any other information you reported to HMRC via your tax return.
When can I use EYCs?
EYCs can be used to correct any errors on your self-assessment tax returns as long as the year of correction is still open for HMRC to investigate. This means you can use EYCs for any errors in your current tax year, and for previous tax years.
How do I use EYCs?
To use EYCs, complete a form called Earlier Year Correction Notice, which can be found on HMRC’s website. This form will ask for information about the error you want to correct. You’ll also need to provide evidence that supports your EYC claim.
When completed, submit the form and the evidence to HMRC who’ll investigate your claim. If they agree you’ve made an error, they’ll make the necessary adjustment to your tax return and either send you a refund or a bill, whichever applies, preferably the former of course.
What are the benefits of using EYCs?
There are lots of benefits to using EYCs to correct any errors on your self-assessment tax return, including:
- Peace of mind. EYCs can put your mind at ease in knowing that you’ve put right any errors on your tax returns.
- Reduced penalties. By correcting your errors using EYCs, it is possible to avoid paying any HMRC penalties.
- Improved cash flow. If you believe you’re due a refund from HMRC, EYCs can help your case so you can get your refund earlier.
Here are a few top tips for using EYCs:
- Make sure you keep detailed records of your income and expenses as this makes it easier to identify and correct any errors.
- If you’re not sure whether or not you can use EYCs to correct any tax return errors, always seek professional advice from a tax adviser or accountant.
Noticed an error?
Do you think you’ve made an error on your self-assessment tax return? Not sure if you can use an EYC or not? Get in touch with us at Norwich Accountancy.
We’ll help to identify the error, advise if you can use EYCs, help you fill out the HMRC’s form and put your mind at ease.
If you need to understand corporation tax further and its implications on your business, our tax experts at Norwich Accountancy in Norfolk can provide professional tax advice. Whether you’re needing basic tax information, want to reduce corporation tax, help with calculating your tax liability, or any other tax-related task then feel free to put us to the test.
