IHTM31018 - Assessing: calculation principles: when to raise calculations

Generally

You should usually raise calculations as soon as possible to minimise any interest charges and to collect money that is due to the Exchequer. Although, in certain circumstances, taxpayers or agents can tell us about amendments in one go (IHTM10806), so we will not need to issue as many separate calculations in these cases.

On delivery of an account

When the taxpayer or agent delivers the account they are effectively making an offer to pay tax immediately. When we receive the account Pre-grant will raise provisional calculations before we conduct any examination of the account on the basis of the figures returned.

If you are the caseworker you should check the calculations when you first look at the account. You should issue new calculations if:

  • We have made an error when we data captured the case, so that our calculations do not match the taxpayer or agent’s.
  • There is additional tax or interest to pay now.

If you cannot recalculate the tax because

  • you do not have information about aggregable property, or
  • there is some other difficulty,

try and resolve this by phoning the taxpayer or agent.

At this stage you should limit the amount of tax you calculate is due to the minimum that is likely to be payable. You should include any deductions or reliefs that have been deducted but are not agreed.

You can use your discretion when raising provisional calculations for small amounts of tax.

If you are not sure of the exact amount of any increase in the value of an estate, you can suggest that the taxpayer or agent makes a payment on account. You should point out that this will stop interest running on the tax, but only once the due date for paying tax has passed.

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Subsequent amendments

You should note up amendments to the values given in an account (usually on COMPASS) as soon as you are told about them, and then calculate the additional tax that both you and the customer agree is due.

  • You should raise a calculation to bring any money on deposit to account where we have also been told about amendments. This means that, wherever possible, you must apply a deposit against tax and interest when we get the payment and not wait for other enquiries to be settled, first.
  • If the amount paid is not enough you should raise a calculation for the balance of tax and/or interest due that both you and the customer agree is due.