SAM21020 - Assessments: revenue amendment: revenue amendment
A Revenue amendment can be made to a taxpayer’s self assessment in order to finalise full or partial closure of a S9A or S12AC enquiry following the issue of a Partial Closure Notice or Final Closure Notice. It may be made where
- The taxpayer type is individual, trust, or partnership
And
* There is an open S9A or 12AC enquiry
And
* Matters under enquiry are included in a Partial Closure Notice or Final Closure Notice
Or
* You are settling an appeal against an earlier Revenue amendment
Individual or trust
The amendment to the self assessment should be recorded on the taxpayer’s SA record as follows
- If the return for the year has been fully captured and any omissions or understatements can be related to a specific box - use function AMEND RETURN FOR ENQUIRY
- Otherwise - use function CREATE RETURN CHARGE FOR ENQUIRY
The charge will be reflected on the taxpayer’s statement with the description ‘Enquiry amendment for YY/YY’.
When you create or amend the return charge the following year’s SA payments on account will also be adjusted to reflect the revised liability.
Notes:
| 1. | If a claim to adjust payments on account has already been recorded for this following year, there is unlikely to be any change to the amounts displayed in function VIEW STATEMENT. These amounts are the Taxpayer amounts, resulting from the taxpayer’s claim. To view the revised Revenue amounts you would need to use function MAINTAIN PAYMENTS ON ACCOUNT |
| 2. | For 1998-99 and earlier years, if you use function AMEND RETURN FOR ENQUIRY any amount of notional tax in box W44 (G61, L66 or F66) of the Calculation Working Sheet will not be taken into account automatically. You should enter the amount from box W44 (G61, L66 or F66) in the Notional Tax / Tax Credits field in function CREATE RETURN CHARGE FOR ENQUIRY for the same year. Do not alter any other amounts. This will not affect the liability, but may affect the application of the 80 per cent rule for deciding if payments on account are due for the following year, and will cancel them if they are not due |
| 3. | Where the amendment will result in the creation of an over-repayment, the record should be checked for unallocated credit(s) and the unallocated credit(s) moved to OAS before the amendment is made, then move the credit back to the record after the amendment is made. This is because once the credit is allocated to the over-repayment it will not be possible to remove the credit from the over-repayment or to reallocate it to another charge. If the over-repayment is then to be replaced by an interest bearing over-repayment charge, only the amount of the over-repayment outstanding can be replaced and the amount on which interest will be charged is the over-repayment amount less the allocated credit, not the amount of the original over-repayment |
Appeal
The taxpayer may appeal against the Revenue amendment and apply for the resulting charge to be formally postponed. See subjects ‘Handling an Appeal Against a Charge Based Item’ (SAM10060) and ‘Handling a Formal Standover’ (SAM11060).
If the taxpayer makes a postponement application you should also consider informally standing over the relevant amounts of the following year’s payments on account that were adjusted following the recording of the Revenue amendment, if applicable.
Partnership
A Revenue amendment can be made in respect of a partnership for which there is an open S12AC enquiry. However, the procedures differ from above. If a Revenue amendment is required
- The amendment is made to the partnership statement, although no charge is recorded on the partnership’s SA record
And, in the absence of an appeal
- Consequential amendments are made to the partners’ self assessments to reflect their shares of the additional liability. The resulting charge is recorded on the partners’ SA records as above. The partner has no right of appeal against the amendment to his / her self assessment