EM3202 - Discovery: overview

Pre Self Assessment (SA) years

The guidance in this manual cover SA years only.

If HMRC officers need advice about pre-SA years then please send a request to the Specialist Technical Team, see EM21000.

The purpose of the Discovery provisions

Discovery provisions allow an officer of HMRC to make an assessment to recover a loss of tax where the time limit to open SA enquiries has passed or if there is a failure to submit a return. The conditions that allow a discovery assessment to be made must be met EM3230.

Appropriate use of the Discovery provisions

Where a notice to file has been issued to a customer under s8 TMA 1970, or Paragraph 3, Schedule 18 FA 1998, but no return has been submitted, a discovery assessment should not ordinarily be used. Where time limits permit, a determination should usually be issued instead, see EM2027+, for guidance about determinations. If you want to make a discovery assessment, please contact the Specialist Technical Team, see EM21000.

Where there is no return and HMRC are out of time to issue a notice to file, a discovery assessment may be made. A discovery assessment may also be made where a notice to file has been issued, no return has been submitted and HMRC are out of time to issue a determination.

If HMRC are still in time to open an enquiry into a filed return, a notice of enquiry should be issued instead of a discovery assessment. Normal enquiry procedures will apply.

If HMRC are outside the enquiry window, then it might be appropriate to make a discovery assessment. HMRC must meet the conditions to validate a discovery assessment and must be within the normal or extended time limits that apply to discovery assessments, see  EM3214.

Where both a simple assessment, see PAYE96300, and discovery assessment are applicable, HMRC officers should contact the Specialist Technical Team, see EM21000, for advice on which is appropriate.