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HMRC internal manual

Enquiry Manual

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HM Revenue & Customs
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Working the Enquiry: Jeopardy Amendments: Introduction

TMA70/S9C

FA98/SCH 18/PARA 30

Where a taxpayer will not agree to make a payment on account, and you are of the opinion that tax is at risk, you should consider making a jeopardy amendment.

Jeopardy amendment is the term used to describe an amendment made by an HMRC officer to the taxpayer’s self-assessment before an enquiry is completed. The amendment replaces the taxpayer’s self-assessment (as there can be only one assessment for any year) and tax is therefore collectible on the basis of the amendment (subject to the taxpayer’s right to make a postponement application).

A jeopardy amendment will not, on its own, be an occasion to consider an early penalty determination, see EM5202.

For pre-SA years you will be able to secure a payment on account where tax is at risk by making an estimated discovery assessment (where one was not already in existence). The taxpayer may apply to have the tax postponed. The taxpayer does not have to apply for postponement at the same time as they appeal against the decision or assessment, but you cannot accept a postponement application if there is no related appeal. If you cannot agree the amount to be postponed, the taxpayer may apply to the tribunal to decide the matter, see ARTG2530+.

There is guidance on

  • the conditions for a jeopardy amendment EM1952 
  • when to make a jeopardy amendment EM1953 
  • the notice itself EM1954 
  • appeals and postponements EM1955