DST69200 - HMRC Response to a claim

Once a claim is received, HMRC may accept and process the claim for relief on overpaid tax. Otherwise HMRC may make an enquiry into the claim.

Under Schedule 8 Paragraph 27, HMRC have the power to enquire into a claim. If HMRC wish to commence a compliance check, HMRC must inform the Responsible Member of this by the first quarter day that follows one year from the day the claim was made. The quarter days are 31 January, 30 April, 31 July and 31 October.

If HMRC opens a Schedule 8 Paragraph 27 compliance check into the claim, the claim does not take effect until the compliance check is concluded by issuing a closure notice (schedule 8, paragraph 28). Any compliance check into the claim will be handled separately from any compliance check into a DST return.

When HMRC have completed the compliance check, they will issue a closure notice to the Responsible Member. The closure notice will either state no amendment to the claim is necessary or make the amendments necessary to give effect to the conclusions of the check. Following the issue of the closure notice, any necessary adjustments will need to be made within 30 days of the notice being issued. This can be either by way of assessment or by discharge or repayment of tax.

If, subsequently, it is found the amount paid by way of a repayment of DST exceeds the amount which HMRC was liable to repay, HMRC may make an assessment or supplementary assessment to recover the excess repayment. HMRC will notify the responsible member of these assessments. HMRC will only be able to make an assessment or supplementary assessment within 4 years of the end of the accounting period in which the additional evidence to justify making the assessment comes to the knowledge of the Commissioners for HMRC.