This part of GOV.UK is being rebuilt – find out what beta means

HMRC internal manual

Self Assessment Claims Manual

How to deal with tax adjustments that are not claims?: dealing with requests made in returns and outside returns

The types of request for a tax adjustment mentioned at SACM14005 are not claims. How you check the tax adjustment will depend on whether or not it was made in an ITSA return. Some customers will not be able to ask for a tax adjustment in a ITSA return, for example:

  • Non-director employees, with income and expenses below a certain level, who do not receive a notice to file a return
  • Customers formerly within Self Assessment, where we have agreed to withdraw a notice to file a return.

Examining tax adjustments made in a return

If the tax adjustment was made in a return, and relates to the year of assessment for which the return was issued, you can check it by opening an enquiry under Section 9A TMA 1970. Section 9A(4) extends the enquiry to anything contained in the return or an amended return

Examining tax adjustments not made in returns

If the tax adjustment is not made in a return or amended return, you cannot open an enquiry under Sch 1A TMA because that schedule only applies to claims and elections that come within TMA70/S42.

You can ask questions about whether the exemption, deduction or other tax adjustment is allowable, and ask to see supporting documents.

When you are checking an exemption, deduction or other tax adjustment you should follow specific guidance for that area. In most cases the relevant guidance will be in the Employment Income Manual (EIM). For example, see EIM31700 ‘Dealing with expenses’, onwards.

When your check is completed you should tell the customer your conclusion about their request for an exemption, deduction or other tax adjustment.