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HMRC internal manual

Insurance Premium Tax

IPT assessments and other matters: Assessments and misunderstandings

Where a claim of misunderstanding or allegation of incorrect advice has been made, although the case may be under consideration, it is important to bear in mind the time limits for issuing assessments: see IPT09125. If there is any risk of an assessment being out of time, the assessment should be made immediately, together with a suitable covering letter. Insurers need not make written appeals against payment as a precondition of the consideration of a remission because of misunderstanding or alleged incorrect advice. Enforcement action may need to be inhibited. Notify the BTOps (see IPT01200) to make sure the amount under consideration is not deducted from repayment claims.


You will not be penalised for any mistakes or errors of judgment where you have performed your duties conscientiously and to the best of your abilities. Do not feel inhibited from making considered judgments, displaying initiative or taking decisions, because of the responsibility of line managers to consider culpability in remission cases. Where a remission has been authorised, and the deficiency has been caused by Departmental error or negligence, the authorising officer should consider the provisions set out in Chapter 7 of Guidance A9-2 Revenue Losses.