SALF601 - Claims, Elections and Notices: Outline

SALF602 Introduction

Terminology used in this chapter

Section 42(10), paragraph 1 of Schedule 1A

Paragraph 1(1) Schedule 1B

SALF603 Claims, elections and notices included in tax returns

General procedure for making claims

Wherever possible claims should be included in a tax return

Sections 42(1), (2) & (10)

Claims must be quantified at the time they are made

Section 42(1A)

Exceptions to the general rules

Claims given effect by a PAYE coding adjustment

Section42(3)

SALF604 Claims, elections and notices not included in tax returns

A ‘process now - check later’ scheme applies to any claim not included in a tax return

Section 42(11) and Schedule 1A

SALF605 Procedures for making claims other than in a tax return

There are formal procedures for all claims

Paras 2(1) & (3), Schedule 1A

Para 2(2), Schedule 1A

Para 2(4)(5) & (6), Schedule 1A

SALF606 Amendments of claims

HMRC is able to correct the claim during initial processing

Para 3(1)(a), Schedule 1A

The claimant may make amendments providing the claim is not under enquiry

Para 3 (1)(b) & (2), Schedule 1A

SALF607 Giving effect to claims

Unless a claim is under enquiry it must be given effect as soon as is practicable

Para 4, Schedule 1A

SALF608 Record-keeping requirement

Claimants are required to keep the records on which a claim is based

Paras 2A(1), (2) & (3), Schedule 1A

Penalty for failure to keep or preserve records

Para 2A(4), Schedule 1A

SALF609 Enquiries into claims

HMRC is entitled to enquire into any claim

Para 5, Schedule 1A

Where no notice of enquiry is issued the claim is final

Requests for documents, accounts or particulars

FA08/Sch36

Procedures relating to requests for documents the same as for tax returns

FA08/Sch36

SALF610 Settlement of an enquiry

Amendment of claims following an enquiry

Para 7(1)(2)(3) and (4), Schedule 1A

Application for a direction that an enquiry is complete

Para 7(5), Schedule 1A

Appeals against amendments by the officer of the Board

Para 9, Schedule 1A

Giving effect to amendments made after completion of an enquiry

Para 8, Schedule 1A

Para 9(4), Schedule 1A

SALF611 Claims given effect by a carry back of relief to an earlier year

Schedule 1B/Para 2(2)

All such claims are quantified by reference to the tax difference in the ‘earlier year’

Para 2(4)

Any such claim is to be given effect in ‘the later year’

Schedule 1B/Para 2(3) & (6)

Repayment interest

ICTA88/S824(2C) & (3)(ab)

SALF612 Miscellaneous provisions on claims

Supplementary claims

Section 42(9)

Claims, elections and notices that must be made on behalf of a partnership

Section 42(6) & (7)

Claims by trustees, guardians, tutors and curators

Section 42(8)

SALF613 Time limits for claims

Section 43(1) & FA98/SCH18 paragraph 55