Chapter 13 Self-Assessment Further Aspects

Question 1

Self-assessment further aspects

Answer 1

No payments on accounts are required where either the tax due for the previous year was less than £1,000 or more than 80% of the liability for the year was collected at source.
HMRC may made a discovery assessment on an individual and not a self-assessment. They can do this if they discover an amount that has been omitted, an assessment is insufficient, or relief been given has become excessive.
The time limit for making a discovery assessment is 4 years from the end of the tax year to which the assessment relates. However, if the loss of tax is due to careless behaviour, the deadline is extended to 6 years and if the actions were deliberate it can be 20 years. Where the loss of tax relates to an offshore matter the time limit for making an assessment is 12 years unless the 20-year rule applies.