CISR75050 - Deductions: SA subcontractors: refusal of all or part of claim to credit or repayment

CISR75600

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An officer may allow less credit or repayment than is claimed in an SA return, for instance, because

  • the deduction shown cannot be confirmed
  • an in-year repayment has already been made in respect of the transaction included in the return

There are two ways an officer may amend the deduction on an SA return:

  • Make a Section 9ZB Correction
  • Opening a Section 9A Enquiry


Credit for deduction in SA return

S9ZB correction of an SA return

A Compliance officer can amend a claim for a deduction in an SA return where the officer has reason to believe it to be incorrect in light of information available to the officer. This may be further information held on HMRC systems or information provided by the subcontractor. 

This correction can be made within 9 months from the date the return or amendment is filed.

If an officer has information that the retun should be amended, on officer will do so and give notice to the taxpayer. The taxpayer then has 30 days to reject the correction. If this amendment is rejected, a Compliance officer may open a Section 9A enquiry.

Section 9A enquiry

TMA70/s31 refers to cases where the Compliance officer amends the self-assessment during or following a Section 9A enquiry. The Compliance officer will give effect to the refusal by amending the taxpayers return under TMA70/s28A. The taxpayer then has the right of appeal under TMA70/s31. The appeal is against the Compliance officer's amendment to the self-assessment, which withdraws the credit for deduction.

If agreement cannot be reached between the appellant and the Compliance officer, the appellant has the right to ask for an Internal Review (see ARTG4000) and/or appeal to the Tribunal (see ARTG8000).


In-year repayments for SA subcontractors

CISR75030 explains the circumstances where in-year repayments may be made to subcontractors under SA. An officer may refuse a formal in-year repayment in any of the following situations

  • a deduction cannot be confirmed
  • the taxpayer's affairs are not up to date
  • the subcontractor's accounting period ending in the tax year for which the claim is made has not yet ended
  • a partner has not obtained the written agreement of the other partners to their making an in-year claim
  • the claim is made after the end of the tax year to which the deductions relate.

Any refusal should be made in writing. There is no right of appeal against a refusal.