Chapter 3 - Self Assessment - Further Aspects

Question 1

Payments on Account

Answer 1

Not required where:

• tax due for previous year was less than £1,000; or
• > 80% of tax is collected at source

Question 2

Discovery Assessments

Answer 2

HMRC can make a discovery assessment if they discovery that:

1) an amount which ought to have been assessed hasn’t bee;
2) an assessment is or has become insufficient; or
3) relief has been given which is or has become excessive

Question 3

Discovery Assessment Cont.

Answer 3

Assessment is to be in an amount which is necessary to make good the loss of tax.

Question 4

Discovery Assessment Timings

Answer 4

Time limit for assessment depends but general rule is 4 years from end of tax year. If caused by careless behaviour it becomes 6 years, if done deliberately it becomes 20 years.