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HMRC internal manual

Claimant Compliance Manual

HM Revenue & Customs
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Opening and Working Enquiries: Taxpayer/Customer is a Partner in a Business - Impact on Tax Credits Enquiry Windows

SA Enquiries not Opened

If the SA Enquiry officer opens a partnership enquiry and:

  • one or more of the partners is a Tax Credits customer and
  • they do not intend to open S9A into the partner(s) / customer(s)

the Tax Credits Enquiry window is not kept open for those partners who are Tax Credits customers.

In these circumstances as soon as the Enquiry officer opens the partnership enquiry they should discuss the case with the Tax Credits Office. In most cases it will be appropriate for a Tax Credits Compliance officer to open a Section 19(1) enquiry to protect the Tax Credits enquiry window. In partnership cases this may be required before omissions are identified as by the time omissions are established the time limit for opening the Tax Credits enquiry may well have passed.

SA Enquiries Opened

If however the SA Enquiry officer opens a partnership enquiry and S9A enquiries into any partner who is also a Tax Credits customer, the Tax Credits enquiry window is kept open for that partner until the S9A enquiry into their return is closed.

To protect the Tax Credits window the Enquiry officer must consider whether the partner’s Tax Credits award will be affected by the findings in both the S9A enquiry and the partnership enquiry before they close the S9A.

As soon as the Enquiry officer establishes potential omissions they should liaise with Tax Credits to discuss the impact of the findings on the Tax Credits award of the partner(s). A Tax Credits Compliance officer will open the Tax Credits enquiry and work the case in conjunction with the Enquiry officer through to closure.