SAM31031 - Compliance: enquiry work: working an enquiry: using ITSA discovery records (Action Guide)

Making jeopardy amendments

Step 1

Handling appeals and postponements

Step 2

1.

Use SA function AMEND RETURN or CREATE RETURN CHARGE to record any amendment to the return as a result of the enquiry. In function AMEND RETURN use the Change Type 'Correction'

Note: This is because where an ITSA Discovery record has been used, SA functions AMEND RETURN FOR ENQUIRY and CREATE RETURN CHARGE FOR ENQUIRY are not available

2.

If the taxpayer appeals against the jeopardy amendment

• Use function CREATE APPEAL to record the open appeal

And, if the taxpayer has made an acceptable postponement application

• Use function MAINTAIN STANDOVERS

• To suspend collection of additional liability on the amendment

Note: In these cases you can only use an informal standover, though a formal standover should be used

And

• To informally hold over collection of payments on account for the next year to the extent they are based on the amendment

Example

• Additional income tax and Class 4 NIC of £8000 charged in 2006-07 Revenue amendment. Payments on account for 2007-08 increased automatically by £4000 each. Appeal and postponement request received. Agreement to postpone £4000 so £2000 also informally held over on both payments on account for 2007-08

And, if the appeal cannot be determined by agreement

• Submit the appeal for hearing by Tribunal