SACM10050 - Unsuccessful Attempts to make a Claim or Election: Late Claims - Enquiry Into

Throughout this manual legislative references are to the Taxes Management Act 1970 (TMA70), unless otherwise stated.

Claims made outside a return

Where a customer attempts to make a claim outside the statutory time limit and we do not accept it, the Taxes Acts do not apply, as it is not a statutory claim.

So where the general time limit at S43 applies, something received after that time limit is not a claim, as one can no longer be made. This means that

  • the attempted claim is not a claim as far as the Taxes Acts are concerned, and
  • the legislation that normally applies to claims does not apply.

Consequently, a late claim cannot be enquired into under Sch 1A Para 5.

Claims made in a return

If a late claim is included in a return (perhaps because the return is delivered late) then you can

  • correct the return within 9 months of receiving the return, under S9ZB, and
  • exclude the claim as it is an obvious error.

If the correction is rejected you will probably need to open an enquiry into the return to challenge the claim. This is because the attempted claim has been included in a valid return.

If the return is so late that it does not create a self-assessment then you

  • do not need to correct the return, or
  • open an enquiry.

To create a self-assessment a return generally has to be delivered no later than 4 years after the end of the year of assessment, see S34(1), although where a determination has been made the time limit is longer in certain circumstances ,see S28C(5) and EM2027.

Where there is no self-assessment the claim will not give rise to a repayment or reduction in tax automatically even though there is no enquiry, see S59B(1).

These cases can be dealt with in the same way as late claims made outside returns, see above.

If, following the receipt of a late return, you are considering making a discovery assessment under S29 and S36. See EM3905 for the circumstances in which the taxpayer will be able to make a late claim.

In certain circumstances the legislation allows a taxpayer to take various out-of-time actions, including making claims, where we

  • make a discovery assessment, or
  • amend a return in an SA enquiry closure notice.

This may mean that it would be ineffective to open an SA enquiry into a return to challenge a late claim in the return, see EM3905. Where this is the case an enquiry should only be opened if other entries in the return are also to be considered.

The question of consequential claims following assessment or the amendment of a self-assessment is covered in more detail, see SACM9025.