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

HMRC internal manual

Self Assessment Manual

From
HM Revenue & Customs
Updated
, see all updates

Assessments: assessments within SA: making an assessment (Action Guide)

This Action Guide tells you what action to take if it becomes necessary for you to make an assessment and / or enter the resulting charge onto the taxpayer’s SA record. Circumstances will differ from case to case, particularly if an enquiry into an SA return is involved. This Action Guide provides general guidance, but, when given, instructions from an Enquiry Officer or Compliance Manager should be followed.

The function TSS Revenue Assessment should not be used to produce the letter to be sent to the customer. The correct letter is available in SEES Forms and Letters in the Local Compliance category under Notice of Revenue Assessments and should be sent with the calculation. These two documents together form the ‘Revenue Assessment’. Note: The letter produced by the TSS2000 Revenue Assessment function must be destroyed in all cases.

There are two letters available under this category in SEES

RevAsst01 TSS2000 Revenue Assessment to issue to the customer  
     
RevAsst02 TSS2000 Revenue Assessment adviser notice  

There is a facility to print more than one copy of the RevAsst01 letter and you will need to provide a copy to the customer, their adviser (if one has been appointed), and one for the file or case papers.

Consider steps 1 - 24 below.

The guide is presented as follows

  Steps 1 - 8
   
  Steps 9 - 15
  Steps 16 - 18
  Steps 19 - 20
  Steps 21 - 22
  Steps 23 - 24

Individual, Pension Schemes, Trusts and post 6 April 1994 partnerships - 1995-96 or earlier

1. Make the assessment / calculation using one of the following functions / forms
   
  * If the assessment is in respect of Schedule E liability
  * Use a P70 set to prepare and issue a manual assessment
  * If the assessment is in respect of Schedule D, Capital Gains or Taxed Income liability
  * Use the Technical Support System (TSS) assessing application to create the calculation
  * Use SEES to produce the letter to be sent with the calculation
  Note: The letter produced by the TSS function must be destroyed
2. If the assessment relates to Schedule E liability and the taxpayer has agreed to make a voluntary payment
  * Use the Voluntary Payment procedures outlined in the PAYE Manual
3. If the additional liability is to be collected through the SA system
  * Check whether a live SA record exists for this taxpayer. If not, either
  * Set up an SA record. See subject ‘Set Up Individual Taxpayer’ (SAM100220) or ‘Set Up Trust Record’ (SAM100260)
  Or
  * Re-activate a dormant record. See subject ‘Dormant Records’ (SAM101090)
  And, if the record is being set up only to record the charge
  * Set the MANUAL RETURN signal to ‘Y’
  * Make an SA Permanent Note using SEES Notes Paster. Select the ‘Returns’ category then ‘Dormant Record’ and enter the appropriate information
4. Use function CREATE REVENUE ASSESSMENT to record the charge onto the taxpayer’s SA record. Enter details of the additional liability as appropriate in the following fields
  * Balance
  * Total
5. Use function MAINTAIN SA NOTES to record separately the amounts of Income Tax, Capital Gains Tax and Class 4 NIC included in the assessment, for example, ‘2002-03 Rev. Asst. - IT £xxx, CGT £xxx, NIC £xxx’
6. If Banking Operations has notified you that they hold a payment in OAS, advise them that the assessment has now been made
7. Consider whether the payments on account require increasing for the year 1996-97 if the year of assessment was 1995-96
8. Use SEES to produce the assessment letter
  * Issue the TSS calculation and the SEES letter (RevAsst01) to the customer and send a copy of the SEES letter (RevAsst02) to the agent if applicable
  * Print a copy of the RevAsst01 letter, attach a copy of the calculation and file away in the file, or with the case papers

Individual, Pension Schemes or Trusts - 1996-97 or later

9. Check whether a live SA record exists for this taxpayer. If not, either
   
  * Set up an SA record. See subject ‘Set Up Individual Taxpayer’ (SAM100220) or ‘Set Up Trust Record’ (SAM100260) in business area ‘Records’
  Or
  * Re-activate a dormant record. See subject ‘Dormant Records’ (SAM101090)
10. Use Technical Support System (TSS) assessing application to make the calculation and use SEES to produce the assessment letter
  * Issue the TSS calculation and the SEES letter (RevAsst01) to the customer and send a copy of the SEES letter (RevAsst02) to the agent if applicable
  * Print a copy of the SEES letter (RevAsst01), attach a copy of the calculation and file away with the file, or case papers
11. Use function CREATE REVENUE ASSESSMENT to record the charge onto the taxpayer’s SA record. Enter details of the additional liability as appropriate in the following fields
  * First POA
  * Second POA
  * Balance
  * Total
12. Use function MAINTAIN SA NOTES to record separately the amounts of Income Tax, Capital Gains Tax and Class 4 NIC included in the assessment, for example, ‘2002-03 Rev. Asst. - IT £xxx, CGT £xxx, NIC £xxx’
13. Do you need to use function AMEND RELEVANT DATES to amend the relevant date(s) for FA2009 Section 101 and Schedule 53 (Section 86 up to 30 October 2011) interest purposes?
14. Consider whether the payments on account require increasing for the year following the year of assessment. Follow the guidance in the Action Guide ‘Discovery: Update Payments on Account for Next Year’ (SAM31054) to decide whether payments on account need amending and what amendments are necessary
15. Where liability has increased in a Student Loan case, you should follow the guidance at subject ‘Discovery/contract settlements: student loan repayments (Action Guide)’ at SAM31053 to record the increased liability

Pre 6 April 1994 partnerships - 1995-96 or earlier

16. Use the Technical Support System (TSS) assessing application to make the calculation and use SEES to produce the assessment letter
   
  * Issue the TSS calculation and the SEES letter (RevAsst01) to the customer and send a copy of the SEES letter (RevAsst02) to the agent if applicable
  * Print a copy of the RevAsst01, attach a copy of the calculation and file away with the file, or case papers
17. Set up an SA record for the partnership with the taxpayer type ‘Individual’. (A record with the taxpayer type ‘Partnership’ cannot be created as there are no partnership liabilities under SA). See subject ‘Set Up Individual Taxpayer’ (SAM100220) in business area ‘Records’
18. Use function Create REVENUE ASSESSMENT to record the charge on to the taxpayer’s SA record. Enter details of the additional liability as appropriate in the following fields
  * Balance
  * Total

Pre 6 April 1994 partnerships - 1996-97

19. Use the TSS Revenue Assessment assessing application to make the calculation and use SEES to produce the assessment letter. See Step 15. Note: In the case of liability arising under paragraph 3 Schedule 20, do not amend the original assessment. The wrong date for Section 86 interest will be created
   
  At the same time
  * Amend the 1996-97 partnership statement to reflect the amounts shown in the partnership assessment, including each partner’s share of the profits assessed and the income tax and Class 4 NIC due on that share. Because for 1996-97 the SA rules apply to partnerships it is necessary to make this discovery amendment as well as the discovery assessment and to ensure that the figures in each always correspond
  The assessment will become final once the time limit for making an appeal has passed or once any appeal has been determined. If you do not receive separate appeals in respect of each, treat any appeal received against the assessment as an appeal against the discovery amendment to the partnership statement. Remember to determine both when the time comes to do so
20. When the assessment becomes final
  * Amend each partner’s self assessment to reflect the appropriate share of the revised liability using
  * Function AMEND RETURN if there is no open S9A enquiry on the partner and the return has been captured
  Or, where there is an open S9A enquiry on the partner, make a Revenue amendment using
  * Function AMEND RETURN FOR ENQUIRY if the return has been captured
  Exceptionally, if a partner has not filed his or her return there will be no self assessment which can be amended and you will be unable to take any further action at this time

Pre 6 April 1994 partnerships - 1997-98 or later

| 21. | Do not make a discovery assessment on the partnership. Instead | || |   | * Amend the partnership statement to show the revised details, and each partner’s share | | 22. | Once the partnership statement becomes final, amend each partner’s self assessment to give effect to the changes in the partnership statement using | |   | * Function AMEND RETURN if there is no open S9A enquiry on the partner and the return has been captured
 
Or, where there is an open S9A enquiry on the partner, make a Revenue amendment (SAM21020) using | |   | * Function AMEND RETURN FOR ENQUIRY if the return has been captured | |   | Exceptionally, if a partner has not filed his or her return there will be no self assessment which can be amended and you will be unable to take any further action at this time. |

Post 6 April partnerships - 1996-97 or later

| 23. | Do not make an assessment on the partnership. Instead | || |   | * Amend the partnership statement to show the revised details, and each partner’s share | | 24. | Once the partnership statement becomes final, amend each partner’s self assessment to give effect to the changes in the partnership statement using | |   | * Function AMEND RETURN if there is no open S9A enquiry on the partner and the return has been captured
 
Or, where there is an open S9A enquiry on the partner, make a Revenue amendment using | |   | * Function AMEND RETURN FOR ENQUIRY if the return has been captured | |   | Exceptionally, if a partner has not filed his or her return there will be no self assessment which can be amended and you will be unable to take any further action at this time |