MTT55360 - Administration: Compliance: Discovery assessments and HMRC determinations: HMRC determinations

If a filing member of a group fails to submit a self-assessment return, HMRC can determine the amount of tax payable by the group for the accounting period (make an ‘HMRC determination’) to the best of the HMRC officer’s knowledge and belief.

An HMRC determination can be made regardless of whether the group has registered for MTT.

This is set out in paragraphs 24 and 25, schedule 14 to Finance (No.2) Act 2023.

Time limits

An HMRC determination cannot be made on or before the filing date or more than 3 years after the filing date (see MTT53000).

Notice of an HMRC determination

HMRC must issue a notice of the determination to the filing member.

The notice of an HMRC determination must state the date on which it is issued.

See MTT51100 for guidance on identifying the filing member, which will be the ultimate parent by default. Note that it is possible to identify a filing member even if the group has not registered.

Right of appeal

Although there is no right of appeal against a determination, filing a self-assessment return can supersede a determination (see MTT55370).

HMRC determinations and the below threshold notification

A determination may also be appropriate in situations where the group has failed to submit a self-assessment return because a below-threshold notification was submitted for a prior accounting period, but HMRC has reasonable grounds to believe the below threshold notification was not valid for that period.

Where the deadline for issuing a determination has passed, a discovery assessment may still be issued, subject to the relevant conditions (see MTT55310).

Effect of determination

A determination has the same effect for enforcement purposes as a self-assessment return (FA20/SCH8/PARA17). ‘Enforcement purposes’ means the purposes of provisions providing for:

  • tax-related penalties,
  • collection and recovery of tax, and
  • interest on overdue tax.