SAM20120 - 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
Select the example you want to view
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 | 0 | - |
| Second POA | 0 | - |
| 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)\n31/07/2013 (PoA2) | 2,000\n2,000 |
| Payment on A/C (Discovery assessment) | 5,000 | 31/01/2013 (PoA1)\n31/07/2013 (PoA2) | 2,500\n2,500 |
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)\n31/07/2013 (PoA2) | 2,000\n2,000 |
| Payment on A/C (Discovery assessment) | 2,000 (5,000 - 3,000) | 31/01/2013 (PoA1)\n31/07/2013 (PoA2) | 1,000\n1,000 |
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 | 0 | - |
| Second POA | 0 | - |
| Balance | 5000 | CY assessment charge |
2012-13
| Source | Amount Due | Int. rel. date | Amount |
|---|---|---|---|
| Self assessment | 8,000 | 31/01/2013 (PoA1)\n31/07/2013 (PoA2)\n31/01/2014 (BAL) | 3,000\n3,000\n2,000 |
| Discovery assessment | 7,000 | 31/01/2013 (PoA1)\n31/07/2013 (PoA2)\n31/01/2014 (BAL) | 2,500\n2,500\n2,000 |
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)\n31/07/2014 (PoA2) | 4,000\n4,000 |
| Payment on A/C (Discovery assessment) | 7,000 | 31/01/2014 (PoA1)\n31/07/2014 (PoA2) | 3,500\n3,500 |
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)\n31/07/2013 (PoA2)\n31/01/2014 (BAL) | 3,000\n3,000\n2,000 |
| Discovery assessment | 4,000 (7,000 - 3,000) | 31/01/2013 (PoA1)\n31/07/2013 (PoA2)\n31/01/2014 (BAL) | 1,000\n1,000\n2,000 |
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)\n31/07/2014 (PoA2) | 4,000\n4,000 |
| Payment on A/C (Discovery assessment) | 4,000 (7,000 - 3,000) | 31/01/2014 (PoA1)\n31/07/2014 (PoA2) | 2,000\n2,000 |
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 | 0 | - |
| Second POA | 0 | - |
| 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.