HMRC Tax Return Enquiry after BC application

[Aspiring_BC]

Hi,

I've been silent reader of the forum over the past years and have been immensely benefited by all the knowledge and experiences shared by members. A BIG THANK YOU for that !!!

Here is the dilemma I'm in....

I've applied for Naturalisation on 30 Aug 2016 using NCS JCAP. I did biometrics registration on 13 Sep 2016. Yesterday (19 Sep, letter dated 14 Sep 2016) I got tax enquiry letter from HMRC querying self assessment details I filled in for 2012-13. I left permanent employment and became limited company director in 2012. However my old employer made a holiday pay payment subsequently which was not included on the P45. I reported the figure quoted on my P45 on my SA ( and missed out including holiday pay)

Having talked to my previous employer and gone through my bank statements, I realise that details I included on SA were incorrect (off by the holiday pay amount). Since HMRC have started an enquiry, my acceptance of mistake will potentially result in penalty.

I'm sure that HO will become aware of this issue. My question is how will this penalty be looked at by case worker? Does this reflect bad character on my behalf? WiIl it be considered case of tax evasion?

If I reach out to HMRC, accept mistake in filing and agree payment plan, will this result in a favourable position for me?

I would really appreciate if someone can guide me on the issue I'm facing....

Thanks for your help.

[Aspiring_BC]

Moderators, Senior members

Can someone help with my query please?

[devenpunjabi999]

I am not an expert but this seems trivial. Claim this was a genuine error to HMRC and pay off the amount. I am guessing the amount is small and HMRC shouldnt impose any penalties.

This should have no affect on your application if dealt swiftly

[Aspiring_BC]

Thanks for your help.

I've talked to HMRC, explained them as a genuine mistake. However they have insisted on imposing penalty. Waiting for HMRC to send details of how much do I need to pay.

In the mean time, do I need to contact HO and proactively inform that I've co-operated with HMRC and resolve the issue with tax return?

Thanks