This subject supplements the guidance given in subject
‘Handling a formal standover’ (
SAM11060) and gives further information
in respect of a formal standover relating to a Revenue amendment (
SAM21020), including a Jeopardy
amendment (
SAM21010).
A taxpayer or agent may appeal against a charge arising from
a Revenue amendment and may also apply in writing to
formally standover the charge.
When the postponement application is for less than the full
amount of the charge be careful to take the special procedures
relating to formal standovers. This will ensure that the due dates
are correctly adjusted on the taxpayer’s SA record.
If the followingprocedures are not followed any surcharge imposed upon the
taxpayer may beincorrectly computed.
Where a Revenue amendment results in an over-repayment, it is
not possible to formally standover the over-repayment item on the
SA statement. In these circumstances, where the taxpayer appeals
and any postponement application includes all or part of the over-
repayment charge, this needs to be informally stoodover.
Payments on account
When the return charge for the year of self assessment is
amended by a Revenue amendment then the following year’s SA
payments on account are automatically updated to reflect the
revised liability.
It follows that if part of the additional liability created
by the Revenue amendment is being formally stoodover following a
postponement application then a similar part of the following
year’s increased payments on account should also be
postponed. This should be done by
informal standover. A separate appeal against the
payments on account is
not required.
Amending the standover
If the return charge arising from a Revenue amendment is
amended, any formal standover recorded against the charge will
automatically be reduced to NIL. However, if an informal standover
was recorded on a related over-repayment charge it may not be
cancelled and must be reviewed. It may need further amendment or,
more likely, reducing to NIL.
If you want to amend the amounts formal stoodover for any
other reason use function MAINTAIN STANDOVERS.
When you amended the return charge using a Revenue amendment
the following year’s payments on account would have been
automatically adjusted. You may subsequently have informally
stoodover all or part of the increased payments on account for the
following year. If these are reduced following the amendment of the
previous year’s return charge then the informal standovers
will also be automatically reduced. However, the informal
standovers relating to these payments on account should be checked
using function MAINTAIN STANDOVERS. They may need further amendment
or, more likely, reducing to NIL.
The entry on the ‘Open Appeals’ Work List is
automatically deleted when the appeal is closed
and the formal standover is reduced to NIL.
