Appendix 1: Old Error or Mistake Relief: Dealing with Claims
From 1 April 2010, it is not possible to make a claim for the old error or mistake relief for any period. The relief is replaced by overpayment relief, see SACM12000+. You will only need the guidance in SACM Appendix 1 if you are dealing with a claim made before 1 April 2010.
Although in strictness applications for relief in respect of an error or mistake in a return are to be made to the Board, in practice they are made to and initially dealt with in local offices.
There is a mandatory requirement to enquire into any claims for relief in respect of an error or mistake in a return and consequently it is not necessary to open enquiries under TMA70/SCH1A/PARA5. Admissible claims should be accepted in the local office.
If the customer is in receipt of tax credits they should be advised to tell the Tax Credit Office of the details of their claim under TMA70/S33 as they may be entitled to additional tax credits.
Where after considering a claim Inspectors consider it to be inadmissible, a full explanation should be given to the taxpayer as to why the claim is considered inadmissible and the withdrawal of the claim should be sought.
Claims to error or mistake relief may only be refused by the Board. Should the claimant not be prepared to withdraw his application in the light of the Officer of the Board’s explanations as to why in his view the claim cannot be accepted, the Officer should submit the claim to Central Policy (Tax Administration Advice).
The submission should show for each year affected
- the amount returned
- the amounts of the assessment and of tax paid (if any)
- the date that the assessment was issued and became final and conclusive
- the amount of relief claimed
- the Officer’s recommendation, and
- the computation of any (net) relief considered to be due.
Please include copies of the initial and final assessments if these are not already in the papers.