DST61400 - Taxpayer Amendments

If a group’s Responsible Member amends its return while a compliance check is in progress, the amendment does not restrict the scope of the compliance check but may be taken into account together with any matters arising in the compliance check.

Any potential changes to the tax liability only become effective once the compliance check is closed.

If the time limit for amending the return has expired, the Responsible Member cannot amend the group’s DST return.

If the Responsible Member is within time to amend its return, HMRC will take the amendment into account as part of the compliance check before issuing a closure notice, even if this means prolonging the compliance check to deal with any new points raised.

Any amendment does not take effect until after the compliance check is completed so far as the amendment affects the amount stated in the group’s self-assessment of the amount of tax payable.

If the conclusions in the closure notice state either that the amendment was not taken into account in the compliance check or that no amendment of the return is required arising from the compliance check, then the amendment takes effect on the issue of the closure notice.

Otherwise, the amendment takes effect as part of the amendments made by the closure notice.

Amendment anticipating conclusions in a closure notice

As a result of negotiations leading up to the close of a compliance check, HMRC may receive a revised return from the Responsible Member that fully and accurately anticipates the conclusions of the check before they are stated in a closure notice. The revised return may be submitted within the applicable time limits so that it is a valid amendment.

HMRC cannot conclude a compliance check into a group’s DST return by just accepting the revised return, even if the figures subsequently stated in the closure notice will be identical to those in the revised return. To complete the compliance check, HMRC must issue a closure notice.

How HMRC treats the revised return depends on whether the time limit for amending the DST return has expired.

If the time limit to amend the return has not expired, the amendment is deferred and takes effect when the compliance check is completed.

If the time limit has expired, the Responsible Member cannot amend the DST return.

Repayment during an ongoing Compliance Check

If the Responsible Member of a group is within the time limit to amend its return during a compliance check then an amendment which gives rise to a repayment does not restrict the scope of the compliance check, but may be taken into account, together with any matters arising in the compliance check.

Provided HMRC is satisfied that any such claim meets the requirements of the legislation, HMRC will follow the relevant procedures with respect to issuing a repayment.