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HMRC internal manual

PAYE Manual

PAYE operation: review of claims and deductions: introduction

‘Review work’ is the important process of checking claims or deductions for correctness, accuracy and the identification of potential risks, often culminating in an informal or formal challenge.

When Income Tax Self Assessment (ITSA) was first introduced, the Department was very successful in instilling the message that we only have ‘one bite of the cherry’. This stressed to all staff that any action they may take must not jeopardise a potential Section 9A TMA 1970 enquiry. A review of this work found that, as a result, the majority of staff are reluctant to query anything that looks incorrect or doubtful, in case their actions prevent a future enquiry.

Unfortunately, this message was so strong that it also gave the perception that an enquiry can only be undertaken through the Section 9A procedure within ITSA. As a consequence, very little activity currently takes place within claims or deductions outside the ITSA regime.

The guidance in this section should be followed when dealing with informal claims received from an individual by letter or form P810, for whom there is no existing live Self Assessment record.