EM3252 - Discovery: issuing discovery assessments: making versus notifying

‘Making an assessment’ vs ‘Issuing a notice’

There is a distinction between when an assessment has been made and the separate task of notifying the taxpayer of the assessment.

An assessment is made when an officer reaches the decision to make the assessment, has calculated the amount due and has received authorisation. That officer can then complete the administrative tasks required to input the amount and issue the notice of assessment to the taxpayer.

The notice of assessment does not need to be issued within the relevant time limit. It should be issued shortly after making an assessment, but this can be after the time limit to make an assessment has expired.

However, s113(1B) TMA 1970 allows the assessing officer to pass on the responsibilities of completing the administrative tasks to another officer.

This means that the process of notification does not have to be carried out by the same officer who made the assessment.

For guidance on how to issue a discovery assessment, see SAM20061.

Best practice – explanatory letter

When an officer issues a discovery assessment it is best practice to accompany it with a letter explaining what discovery was made and when. It should also explain which conditions have been met in order to validate the assessment.

For further guidance about explanation letters see EM3258.

Whilst not compulsory, providing this information can help taxpayers understand why the assessment has been made, and aid the reduction of potentially unnecessary disputes.