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HMRC internal manual

Self Assessment Manual

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HM Revenue & Customs
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Assessments: assessments within SA: SA assessments - examples

The following examples illustrate

  • Relevant dates for interest (int. rel. date) under

    • TMA 1970 S86 (up to 30 October 2011) and
    • FA2009 S101 and Schedule 53 (from 31 October 2011)

In respect of

* Different types of assessment

And  


* Assessments for one or more years
  • What entries to make in Function CREATE REVENUE ASSESSMENT
  • The effects of a Revenue assessment on the following year’s payments on account
  • The effects an appeal and postponement application have on the liability for the year of assessment and the following year’s payments on account

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  • A discovery assessment is made for one year only

  • An appeal and postponement application is received in respect of the discovery assessment

  • Discovery assessments are made for consecutive years

  • Appeals and postponement applications are received in respect of the discovery assessments

  • A non-discovery assessment is made

Example 1

A discovery assessment is made for one year only

The liability arising from the 2011-12 self assessment is £4,000, made up of two payments on account of £1500 and a balancing charge of £1000.

A discovery assessment is made on 15 April 2014 for the year 2011-12.

The additional liability arising from the assessment is £5,000.

2011-12 

Source Amount Due Int. rel. date Amount
       
Discovery assessment 5,000 31/01/2013 (BAL) 5,000

Entries to make in Function CREATE REVENUE ASSESSMENT

Field Entry Notes
     
Year 12  
Total 5000  
First POA    
Second POA    
Balance 5000 CY assessment charge

In addition, you must consider the effect of the discovery assessment on the 2012-13 payments on account, which should be adjusted to reflect the revised 2011-12 liability.

2012-13 

Source Amount Due Int. rel. date Amount
       
Payt on A/C (Self assessment) 4,000 31/01/2013 (PoA1)  
31/07/2013 (PoA2) 2,000
2,000      
  Payt on A/C (Discovery assessment) 5,000 31/01/2013 (PoA1)
31/07/2013 (PoA2) 2,500
2,500

Example 1A

An appeal and postponement application is received in respect of the discovery assessment made in Example 1

The taxpayer applies for £3,000 of the charge arising from the 2011-12 assessment to be formally stoodover

The revised amounts due will be

2011-12 

Source Amount Due Int. rel. date Amount
       
Discovery assessment 2,000 (5,000 - 3,000) 31/01/2013 (BAL) 2,000

You must consider the 2012-13 payments on account and informally standover the amount resulting from the previous year’s Revenue assessment for which postponement was sought for 2011-12.

2002-03 

Source Amount Due Int. rel. date Amount
       
Payt on A/C (Self assessment) 4,000 31/01/2013 (PoA1)  
31/07/2013 (PoA2) 2,000
2,000      
  Payt on A/C (Discovery assessment) 2,000 (5,000 - 3,000) 31/01/2013 (PoA1)
31/07/2013 (PoA2) 1,000
1,000

Example 2

Discovery assessments are made for consecutive years

The liability arising from the taxpayer’s self assessment is

2011-12 £6,000

2012-13 £8,000

Discovery assessments are made for the years 2011-02 and 2012-03. The additional liability arising from the assessments is

2011-12 £5,000

2012-13 £7,000

2011-12 

Source Amount Due Int. rel. date Amount
       
Discovery assessment 5,000 31/01/2013 (BAL) 5,000

Entries to make in Function CREATE REVENUE ASSESSMENT

Field Entry Notes
     
Year 12  
Total 5000  
First POA    
Second POA    
Balance 5000 CY assessment charge

2012-13 

Source Amount Due Int. rel. date Amount
       
Self assessment 8,000 31/01/2013 (PoA1)  

31/07/2013 (PoA2)

31/01/2014 (BAL) 3,000

3,000

2,000      
  Discovery assessment 7,000 31/01/2013 (PoA1)

31/07/2013 (PoA2)

31/01/2014 (BAL) 2,500

2,500

2,000

Entries to make in Function CREATE REVENUE ASSESSMENT

Field Entry Notes
     
Year 13  
Total 7000  
First POA 2500 1/2 PY asst charge
Second POA 2500 1/2 PY asst charge
Balance 2000 CY asst charge less POA

In addition, you must consider the effect of the 2012-13 Revenue assessment on the 2013-14 payments on account, which should be adjusted to reflect the revised 2012-13 liability.

2013-14 

Source Amount Due Int. rel. date Amount
       
Payt on A/C (Self assessment) 8,000 31/01/2014 (PoA1)  
31/07/2014 (PoA2) 4,000
4,000      
  Payt on A/C (Revenue assessment) 7,000 31/01/2014 (PoA1)
31/07/2014 (PoA2) 3,500
3,500

Example 2A

Appeals and postponement applications are received in respect of the Revenue assessments made in example 2 

The taxpayer applies for £3,000 of the charges arising from the 2011-02 and 2012-13 Revenue assessments to be formally stoodover.

The revised amounts due will be

2011-12 

Source Amount Due Int. rel. date Amount
       
Revenue assessment 2,000 (5,000 - 3,000) 31/01/2013 (BAL) 2,000

2012-13 

Source Amount Due Int. rel. date Amount
       
Self assessment 8,000 31/01/2013 (PoA1)  

31/07/2013 (PoA2)

31/01/2014 (BAL) 3,000

3,000

2,000      
  Revenue assessment 4,000 (7,000 - 3,000) 31/01/2013 (PoA1)

31/07/2013 (PoA2)

31/01/2014 (BAL) 1,000

1,000

2,000

In addition, you must consider the 2013-14 payments on account and informally standover the amount resulting from the previous year’s Revenue assessment for which postponement was sought for 2012-13.

2013-14 

Source Amount Due Int. rel. date Amount
       
Payt on A/C (Self assessment) 8,000 31/01/2014 (PoA1)  
31/07/2014 (PoA2) 4,000
4,000      
  Payt on A/C (Revenue assessment) 4,000 (7,000 - 3,000) 31/01/2014 (PoA1)
31/07/2014 (PoA2) 2,000
2,000

Example 3

A non-discovery assessment is required

An assessment is made on 15 April 2013 for the year 2011-12. The liability arising is £5,000.

2011-12 

Source Liability Int. rel. date Amount
       
Revenue assessment 5,000 15/05/2013 5,000

Entries to make in Function CREATE REVENUE ASSESSMENT

Field Entry Notes
     
Year 12  
Total 5000  
First POA    
Second POA    
Balance 5000 CY assessment charge

Notes:

1. The relevant date for Section 101 FA2009 (S86 TMA up to and including 30 October 2011) interest purposes is 30 days after the date of issue of the Notice of Assessment. (This will differ if the assessment is made under either S30 TMA 1970 or S153A(4) TCGA 1992)
   
2. Use function AMEND RELEVANT DATES to amend the due date of payment on the additional charge to 30 days after the issue of the assessment
3. Payments on account for the year following the year of assessment are not disturbed

If an appeal and application for postponement is subsequently received, amendment is due only in respect of the charge resulting from the assessment. There are no other consequences.