Policy paper

Statement of Practice 1 (2010): Annex B

Updated 5 May 2022

Conduct of income tax business by telephone directions

The Commissioners for Her Majesty’s Revenue and Customs make the following directions in exercise of the powers conferred by section 118 Finance Act 1998.

Commencement

1 . These directions have effect from 26 April 2010.

Interpretation

2 . In these directions:

• “FA 2004” means the Finance Act 2004
• “ITEPA” means the Income Tax (Earnings and Pensions) Act 2003, “ITTOIA” means the Income Tax (Trading and Other Income) Act 2005, “ITA” means the Income Tax Act 2007
• “TM” means the Taxes Management Act 1970
• “caller” means the party to the telephone call other than the HM Revenue and Customs Taxes helpline

Individuals in respect of whom business may be conducted by telephone

3 . These directions apply to an individual who wishes to:

(a) make a claim or election, or to notify HM Revenue and Customs of income or benefits, or withdraw such a claim, election or notification, and who

(i) is not required to make a self assessment return for a year under section 8(1) of the TMA, or
(ii) has made a self assessment return but the time specified in section 9ZA of the TMA for amending a return has expired; or

(b) amend a self-assessment for any tax year under section 9ZA of the TMA, if the time to do so specified in that section has not expired.

Matters to which these directions apply

4 . These directions apply only to those matters specified in Parts 2 to 4 of the Schedule.

Circumstances in which matters may be notified, etc by telephone

5 . (1) The matters specified in the Schedule may be validly made, notified or withdrawn by telephone if the following conditions are met.

(2) The first condition is that the telephone call is made to or from a HM Revenue and Customs Taxes helpline

(3) The second condition is that the caller is

(a) an individual acting on his or her own behalf, or
(b) where an individual has notified HM Revenue and Customs that a third party is authorised to act on his or her behalf (and that notification has not been revoked) that third party

(4) The third condition is that the caller provides all the information which HM Revenue and Customs request during the telephone call. Restrictions on the application of these directions

6 . (1) The application of these directions is subject to any monetary limit or other restriction noted in the Schedule.

(2) These directions do not apply to an individual acting in the capacity of trustee, partner or personal representative, or to a third party authorised to act on behalf of an individual acting in such a capacity.

(3) If, during a call to which these directions apply, the caller fails to meet the third condition specified in paragraph 5(4) above, these directions do not apply to any subsequent attempt to establish or withdraw the same amendment, claim, or election, or notify or withdraw a previous notification of the same income or benefits.

(4) Nothing in these directions varies any requirement under an enactment as to the period within which an amendment, claim, election, or notification may be made.

Date claim, etc made

7 . An amendment, claim, election, notification or withdrawal made in accordance with these directions will be treated as made on the date the telephone call is made.

Revocation of previous directions

8 . The directions relating to business by telephone published in April 2005 in Statement of Practice 1/05 are revoked.

Dave Hartnett

Bernadette Kenny

Two of the Commissioners for Her Majesty’s Revenue and Customs

26 March 2010

SCHEDULE

Matters to which these directions apply

Part 1 — Interpretation

1 . In this Schedule “current year” means the year of assessment in which the claim, election or notification is treated as being made under these directions.

2 . In Part 2 references to claims or elections include references to an amendment to a return to make a claim or election and to an amendment to a claim or election made in the original return.

Part 2 — Claims and elections

3 . A claim or election in respect of:

(a) personal allowance under section 35, 36 or 37 of ITA
(b) tax reduction for married couples or civil partners under Chapter 3 of Part 3 of ITA
(c) blind person’s allowance under s 38 or s39 of ITA

4 . A claim to any of the following income tax reductions for the current year or the year immediately preceding the current year, subject to the monetary limit or other conditions specified:

Income tax reduction	Monetary limit
Relief for gift aid payments under section 414 ITA	£5000
Relief for contributions to a pension scheme under section 193 or 194 of the FA 2004	£5000
Relief for contributions to a retirement annuity contract under section 194 of the FA 2004, provided that relief has been given for contributions to the same retirement annuity contract for a previous tax year	£2500

Part 3 — Income and benefits

5 . Notification of any taxable benefit within the meaning of Part 3 of ITEPA for the current year or the year immediately preceding the current year, an amendment to a return to make such a notification and an amendment to such a notification made in the original return.

6 . Where an employer has made a PAYE return in respect of the individual, notification of the following types of income:

(a) commission or tips received from that employment, and Page 4 of 5 Page 5 of 5
(b) any earnings from employment other than that employment, for the current year or the year immediately preceding the current year.

7 . Amendment to return details of any income omitted from the employment pages of the original return for the current year or the year immediately preceding the current year.

8 . Notification of, the following income:

(a) interest and investment income (whether received gross or after deduction of tax)
(b) state pension
(c) pensions other than state pension
(d) incapacity benefit
(e) employment support allowance
(f) income from renting the individual’s own home, including income to which Part 1 Chapter 7 ITTOIA (rent-a-room relief) applies
(g) other property income
(h) other taxable income other than earnings, for the current year or the year immediately preceding the current year.

9 . Amendment to a return to correct a figure of interest which is incorrect because:

(a) capital from investments has been entered as interest, or
(b) full interest from a joint account has been entered (rather than the individual’s share).

10 . Amendment to a return to correct figures of state pensions, pensions other than state pensions, incapacity benefit or employment support allowance.

10A . (1) Amendment to a return to correct an entry relating to one or more payments made under SEISS, subject to the following restrictions:

a) that the amendment may only be one that arises in consequence of a correction to the return made by HMRC, by which HMRC inserted details of the SEISS payment into a box designated on the return form for that purpose;
b) that the amendment may only be made to a return for the tax year 2020 to 2021 or 2021 to 2022.

(2) In this paragraph, “SEISS” means the self-employed income support scheme (as it has effect from time to time) that is the subject of the direction given by the Treasury on 30 April 2020 under section 76 of the Coronavirus Act 2020.”.

Part 4 — Other amendments

11 . Correction of a provisional figure in the employment pages of the original return to a final figure.

12 . Correction of an incorrect figure in the employment pages of the original return.