EM3347 - Reopening Earlier Years: Assessments: Notification to Taxpayer
Where you intend to make an assessment for the purposes of making good a loss of tax or NIC attributable to any form of default you must take the following action.
Normal or extended time limits - explanation letter
Send the taxpayer (and the agent if they have one) an explanation letter - see ARTG2190 - when the notice of assessment is issued. In the explanation letter you must
- explain the reasons why you are making the assessment,
- tell the taxpayer about their right to appeal against the assessment and, if they wish, ask for a review of our decision and apply for postponement of the tax charged by the assessment, and
- for extended time limits, also include the points below.
Extended time limits - additional points for explanation letter
If you are relying on HMRC’s ability to make an assessment under extended time limits, your explanation letter must also include
- your explanation of why you consider that you are able to use extended time limits - the rules for extended time limits are at EM3270 for assessments made on or before 31 March 2010 and CH53100 for assessments made after 31 March 2010,
- factsheet CC/FS9,
- an explanation that you have enclosed a copy of factsheet CC/FS9, which explains the taxpayer’s rights when we are considering penalties,
- any other relevant factsheets, and
- a reminder that interest will arise on the eventual liability so the taxpayer should consider making a suitable payment on account.