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HMRC internal manual

Self Assessment Manual

Assessments: stand-alone assessments: examples

The following examples illustrate

  • Relevant dates for interest (int. rel. date) under S86 TMA 1970 (up to 30 October 2011) and S101 and Schedule 53 FA2009 (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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Example 1 - Discovery assessment for one year only

Example 1A - Appeal and postponement application for a discovery assessment

Example 2 - Discovery assessments for consecutive years

Example 2A - Appeals and postponement applications for discovery assessments

Example 3 - Non-discovery assessment

Example 1

Discovery assessment 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 and 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 2012  
Total 5000  
First POA    
Second POA    
Balance 5000 CY assessment charge

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
Payment on A/C (Self assessment) 4,000 31/01/2013 (PoA1)  
31/07/2013 (PoA2) 2,000
2,000      
  Payment on A/C (Discovery assessment) 5,000 31/01/2013 (PoA1)
31/07/2013 (PoA2) 2,500
2,500

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Example 1A

Appeal and postponement application for a discovery assessment made in Example 1

The customer applies for £3,000 of the charge arising from the 2011-12 discovery assessment to be formally stood-over

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 stand-over the amount resulting from the previous year’s discovery assessment for which postponement was sought for 2011-12.

2012-13 

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

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Example 2

Discovery assessments for consecutive years

The liability arising from the customer’s self assessment is

  • 2011-12 £6,000 and
  • 2012-13 £8,000

Discovery assessments are made for the years 2011-12 and 2012-13. 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 2012  
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 2013  
Total 7000  
First POA 2500 1/2 PY assessment charge
Second POA 2500 1/2 PY assessment charge
Balance 2000 CY assessment charge less POA

You must consider the effect of the 2012-13 discovery 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
Payment on A/C (Self assessment) 8,000 31/01/2014 (PoA1)  
31/07/2014 (PoA2) 4,000
4,000      
  Payment on A/C (Discovery assessment) 7,000 31/01/2014 (PoA1)
31/07/2014 (PoA2) 3,500
3,500

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Example 2A

Appeals and postponement applications for discovery assessments made in Example 2 

The customer applies for £3,000 of the charges arising from the 2011-12 and 2012-13 discovery assessments to be formally stood-over.

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

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

31/07/2013 (PoA2)

31/01/2014 (BAL) 1,000

1,000

2,000

You must consider the 2013-14 payments on account and informally stand-over the amount resulting from the previous year’s discovery assessment for which postponement was sought for 2012-13.

2013-14 

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

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Example 3

Non-discovery assessment

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 2012  
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 Assessment Notice. (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.