ATXP6 UK
Syllabus A6. Value Added Tax A6b. The Procedures relating to compliance checks, appeals and disputes

A6b. Compliance checks and self assessment

Syllabus A6b)

A5 The procedures relating to compliance checks, appeals and disputes

Appeals

Tax appeals are heard by the Tax Tribunal which is made of:

  1. First Tier Tribunal

    Deals with most cases.

  2. Upper Tribunal

    Deals with complex cases.

What is a tax assessment?

Opening up a tax assessment means that either the taxpayer or HMRC thinks the taxpayer has paid too much or too little tax and wants this to be corrected.

The following table shows when a taxpayer or HMRC can open up a tax assessment.

HMRC can open a normal enquiry for a tax return, 12 months from the date of submission.

However, if HMRC suspects something more serious, they can raise a discovery assessment.

The time limit for raising this discovery assessment depends on the reason of suspicion of HMRC (mentioned below).

After HMRC raises a discovery assessment, taxpayers can raise an appeal within 30 days.

Taxpayers claim for overpayment relief 4 years from the end of the tax year
HMRC can open an enquiry 12 months from submission of the return
HMRC can raise a discovery
assessment
—           No careless or deliberate behaviour 4 years from the end of the tax year
—           Tax lost due to careless behaviour 6 years from the end of the tax year
—           Tax lost due to deliberate behaviour 20 years from the end of the tax year
Taxpayers right of appeal 
against an assessment
30 days from the assessment — appeal in writing