B6: Amendment of a direct tax return

Amendment of personal tax return by taxpayer

 

(1)     A person may amend his return under section 8 or 8A of this Act by notice to an officer of the Board." (TMA 1970, s.9ZA(1))

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Amendment is taxpayer’s only way of challenging self-assessment
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“In other words, Mr Byrne was liable to pay the amounts shown on his self-assessment.  It is irrelevant that he returned income that was not his own:  the fact that he self-assessed himself to tax on that income means that the tax is payable…We note that while a taxpayer has no right to challenge his own self-assessments, he does have a right to amend them.  The amendment must be made in accordance with the terms of s 9ZA TMA which requires the amendment to be made within 12 months of the filing date.  Mr Byrne made no amendment of his self-assessment returns so cannot rely on this and he is many years out of time to make an amendment now.” (Byrne v. HMRC [2017] UKFTT 144 (TC), §§38…39, Judge Mosedale)
 

Time limit

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"(2)     An amendment may not be made more than twelve months after the filing date.

(3)     In this section “the filing date”, in respect of a return for a year of assessment (Year 1), means—

(a)     31st January of Year 2, or

(b)     if the notice under section 8 or 8A is given after 31st October of Year 2, the last day of the period of three months beginning with the date of the notice." (TMA 1970, s.9ZA(2) - (3))

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Time limit does not apply where first return was unsolicited unless treated as a return under s.12D

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“The HMRC submission is that the unsolicited first 2006-07 return should be treated as if it was a return filed in response to a notice under s.8 TMA.  However, it is common ground that no notice was issued under s.8 TMA.  It is a fact that the unsolicited first 2006-07 return was not filed in response to such a notice…Section 9ZA TMA applies, as is indicated in its sub-section (1), to a “return under section 8 or 8A of this Act”.  The express statement that it applies to such returns necessarily implies that it does not apply to returns that are not under section 8 or 8A TMA…In the present case, at the time that the Appellant filed the second 2006-07 return, there had previously already been submitted the first 2006-07 return.  HMRC has not disputed that the Appellant could, by filing the second return, amend the first.  The HMRC objection is rather that the time limit under s.9ZA for making any such amendment had passed by the time that the second 2006-07 return had been filed.  For the reasons above, the Tribunal finds that the time limit in s.9ZA is not applicable.” (Weerasinghe v. HMRC [2013] UKFTT 144 (TC), §§34…36…42).

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Extension of time limit: HMRC discretion

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See C2: Time limits and late claims

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Extended time limit: follower notices

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See FA 2014, Part 4, Chapter 2

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Amendment during enquiry does not take effect until enquiry concluded

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(1)     This section applies if a return is amended under section 9ZA of this Act (amendment of personal or trustee return by taxpayer), or in accordance with Chapter 2 of Part 4 of the Finance Act 2014 (amendment of return after follower notice), at a time when an enquiry into the return is in progress in relation to any matter to which the amendment relates or which is affected by the amendment.

 

(2)     The amendment does not restrict the scope of the enquiry but may be taken into account (together with any matters arising) in the enquiry.

 

(3)     So far as the amendment affects the amount stated in the self-assessment included in the return as the amount of tax payable, it does not take effect while the enquiry is in progress in relation to any matter to which the amendment relates or which is affected by the amendment and—

(a)     if the officer states in a partial or final closure notice that he has taken the amendment into account and that—

(i)     the amendment has been taken into account in formulating the amendments contained in the notice, or

(ii)     his conclusion is that the amendment is incorrect,

the amendment shall not take effect;

(b)     otherwise, the amendment takes effect when a partial closure notice is issued in relation to the matters to which the amendment relates or which are affected by the amendment or, if no such notice is issued, a final closure notice is issued.

 

(4)     For the purposes of this section the period during which an enquiry is in progress in relation to any matter is the whole of the period—

(a)     beginning with the day on which notice of enquiry is given, and

(b)     ending with the day on which a partial closure notice is issued in relation to the matter or, if no such notice is issued, a final closure notice is issued." (TMA 1970, s.9B)

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