SAM124110 - Returns: view and amend return: revisions identified during review for possible enquiry

The aims of enquiry work are to

  • Identify and put right errors and deliberate understatements in returns
  • Recover any unpaid tax (with interest where appropriate)

And

  • Penalise negligence and fraud in order to deter both those whose returns are enquired into and others from submitting incorrect returns in the future

It is just as important that we put right errors in HMRC favour as errors in the taxpayer’s favour. Adjustments are recorded in both cases.

When a case is reviewed for possible enquiry the reviewing officer may consider that an error is obvious and that there is no reason to take the case up for enquiry. A repair can be made to the return under Section 9ZA TMA 1970 in preference to an enquiry.

Individuals’ and Partnership returns

On receipt of instructions from the reviewing officer to make the repair to the return you should use function AMEND RETURN to enter the revised figure or details. Do not select repair messages or enter Customer Service Messages when repairing an Individual’s return because the Tax Calculation includes the words ‘For reasons explained in my letter…’.

You should

  • Record the change as a correction
  • Send a letter of explanation to the taxpayer / nominated partner, see subject ‘Maintain Taxpayer Record: Nominated Partner’ (SAM101290), together with a copy to the agent where the taxpayer / partnership is represented

A Tax Calculation will be issued automatically where

  • The liability has changed
  • Automatic calculation is possible
  • The taxpayer has requested Revenue Calculation

Trust and Estate returns and Tax Returns for Trustees of Registered Pension Schemes

On receipt of instructions from the reviewing officer to make the repair to the return you should use the Technical Support System (TSS), where available, to enter the revised figure or details.

Where the liability has changed the revised charge should be entered on the Trust’s SA record using function CREATE RETURN CHARGE and a letter sent to the trustee explaining what changes have been made and why.

Returns where the liability is calculated manually

On receipt of instructions from the reviewing officer to make the repair to the return, you should calculate the revised liability manually.

Where the liability has changed, the revised charge should be entered on the SA record using function CREATE RETURN CHARGE and a letter sent to the taxpayer or trustee explaining what changes have been made and why.