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HMRC internal manual

Insurance Premium Tax

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HM Revenue & Customs
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Procedure tables: issue of an officer's assessment

All officers’ assessments should be raised using form IPT 641. All assessments must be forwarded to CCU for processing. CCU will issue the Notice of Assessment.

Form IPT 641 should be completed as follows.

insurer’s name and address. This must be the current address of the insurer.
   
line count This is the number of detail lines completed. There are 12 lines immediately available. Blank lines cannot be input. If a line is deleted, the subsequent line references (if used) must be amended. All unused lines must be ruled through.
keying operator’s stamp This is completed by the person keying in the assessment details.
registration number Insurer’s IPT registration number.
period reference The accounting period in which the error was made. Up to 10 lines per accounting period can be accepted.
due to HMRC The amount of any underdeclarations, but see below.
due from HMRC The amount of any overdeclarations, but see below.
   

All unused boxes and lines should be crossed through.

Under and overdeclarations for the same period should be shown separately.

Amounts should be entered as whole pounds - underdeclarations rounded down and overdeclarations rounded up.

Due to and due from amounts must not be entered on the same line.

type code A type code must be entered for each detail line completed: these are detailed on the reverse of the IPT 641.
   
method code A method code must be entered for each detail line completed: a list of the codes is shown on the reverse of the IPT 641.
reason code A reason code must be entered for each detail line completed: a list of the codes is shown on the reverse of the IPT 641. You should note that reason code 16 should be used for all higher rate errors, even if another more specific reason code covers that error.
interest inhibit An interest inhibit code must be entered for each detail line completed.

There are very few occasions when interest should not be calculated; however, where there is a reasonable excuse (see IPT09165) it may be appropriate. Any inhibit of interest must be countersigned at the appropriate level determined and notified by a Grade 7, based on local risk assessment.

gross amount over / underdeclared Entered in words the amount of whichever is the larger, total underdeclared or total overdeclared.
   
assessing officer Details of the LIPTO raising the assessment.
check officer Details of the person checking the assessment. The check officer must be of equal or higher grade to the assessing officer. The responsibility of the check officer is to ensure that the mathematical calculations on the assessment are correct and that the IPT 641 is correctly completed.
counter-signatory The counter-signatory level for authorising the assessment is to be at the appropriate level determined and notified by the Grade 7, based on local risk assessment. The counter-signature is a key control in ensuring the appropriateness and accuracy of the assessment. The decision whether a counter-signature is needed is not delegated to the Grade 7.
office date stamp. To be stamped by the LIPTO raising the assessment, to show the date of completion.

Ensure any unused lines and boxes are ruled through.

NOTE: For the same period, officer’s assessments and voluntary disclosures can be amalgamated on one IPT 641. This is particularly useful for large insurers with a number of assessments in the pipeline.