Purpose:
The purpose of this document is to provide guidance on the general legislative framework that applies to self-assessment claims, outlining key aspects such as definitions, making and amending claims, records and information, provisional claims, repayments, enquiries into claims, consequential claims after assessment, and overpayment relief.
Effects on Industry:
The implementation of this legislative framework is expected to have a significant impact on the tax industry, affecting taxpayers, tax professionals, and HM Revenue & Customs (HMRC) staff. The guidance will provide clarity on the rules governing self-assessment claims, ensuring compliance with relevant legislation and minimizing disputes between taxpayers and HMRC.
Relevant Stakeholders:
This document is primarily aimed at taxpayers who are required to make self-assessment claims, tax professionals (e.g., accountants and tax advisors), and HMRC staff responsible for handling these claims. The guidance will also be relevant to other stakeholders involved in the tax industry, including HMRC’s Policy Team and Taxpayer Liaison Officers.
Next Steps:
Taxpayers are advised to familiarize themselves with this legislative framework to ensure compliance when making self-assessment claims. Tax professionals should update their knowledge on relevant legislation and procedures to provide accurate advice to clients. HMRC staff must apply the guidance accurately when handling self-assessment claims, ensuring fairness and consistency in their decision-making process.
Any Other Relevant Information:
The document’s appendices (SACMAPP1) provide further information on error or mistake relief, which is an essential aspect of the legislative framework. This appendix explains how taxpayers can claim relief for errors or mistakes made when making self-assessment claims, highlighting the importance of maintaining accurate records and seeking professional advice where necessary.
Definition of Claims:
This document defines claims as any statement or notification made by a taxpayer to HMRC that affects their tax liability, including claims to income, capital gains, or Corporation Tax. The definition encompasses various types of claims, such as claims for relief, loss relief, and interest on late payments.
Making and Amending Claims:
The document outlines the procedures for making and amending self-assessment claims, emphasizing the importance of accurate and timely submissions. Taxpayers must provide complete and truthful information when making a claim, and any amendments must be made within specified time limits to avoid potential penalties.
Records and Information:
HMRC requires taxpayers to maintain records and provide relevant information to support their self-assessment claims. This includes retaining documents related to income, expenses, and tax calculations, as well as providing evidence for any claims or reliefs requested.
Provisional Claims and Provisional Figures in Claims:
Taxpayers may make provisional claims or include provisional figures in their self-assessment claims. The document explains the rules governing these situations, emphasizing the need for accurate calculations and supporting documentation.
Giving Effect to Claims:
When a claim is made, HMRC must give effect to it in accordance with the relevant legislation and guidance provided in this document. This includes adjusting tax liabilities, issuing repayment notices, or making other necessary changes to reflect the outcome of the claim.
Repayments:
The document outlines procedures for repaying amounts due to taxpayers when their self-assessment claims are successful. HMRC must issue repayment notices promptly, ensuring that taxpayers receive timely payment of any overpaid taxes.
Making Enquiries into Claims:
In cases where a taxpayer’s self-assessment claim is disputed or incomplete, HMRC may initiate an enquiry to verify the information provided. This process is designed to ensure fairness and accuracy in decision-making, with the aim of resolving disputes efficiently and minimizing delays.
Consequential Claims after Assessment:
Following the assessment of a tax return, taxpayers may need to make consequential claims for issues like overpaid taxes or underpaid interest. The document provides guidance on these situations, emphasizing the importance of accurate record-keeping and timely submissions.
Unsuccessful Attempts to Make a Claim or Election:
In cases where a taxpayer’s claim or election is unsuccessful, HMRC must notify them promptly, explaining the reasons for the rejection and any necessary next steps.
Claims Involving Two or More Years:
Taxpayers may make claims that span multiple years, such as claims for relief or losses. The document explains how to handle these situations accurately, highlighting the importance of maintaining detailed records and seeking professional advice where necessary.
Overpayment Relief:
The document provides guidance on overpayment relief, which allows taxpayers to claim back taxes paid in error. Taxpayers must meet specific conditions to qualify for overpayment relief, including demonstrating that the tax was paid without reasonable excuse.
Claims to Double Assessment under s32 TMA 1970:
Taxpayers may be entitled to make claims for double assessment under section 32 of the Taxes Management Act 1970 (TMA 1970). The document explains the procedures for making these claims, emphasizing the importance of accurate record-keeping and timely submissions.
How Claims Affect Payments on Account:
The document outlines how self-assessment claims may impact payments on account made by taxpayers. Taxpayers must consider their tax liability when determining payment amounts, ensuring that they make sufficient payments to avoid late payment penalties.
How to Deal with Tax Adjustments that are not Claims:
In cases where a taxpayer receives a tax adjustment notice that is not related to a claim, the document provides guidance on how to handle these situations. This includes explaining how to appeal against the adjustment and how to make any necessary repayments or amendments.
Error or Mistake Relief (Appendix 1):
The document’s appendix explains error or mistake relief, which allows taxpayers to correct errors made when making self-assessment claims. Taxpayers must meet specific conditions to qualify for this relief, including demonstrating that the error was not deliberate or due to negligence.
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