Self-Assessment

Criteria for HMRC Self-Assessment

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By HMRC rules, to be liable for Income Tax on employment income in the UK for the 2024/25 tax year (6 April 2024 to 5 April 2025), a taxpayer must meet the following criteria, focusing solely on direct employment income (e.g., salary, wages, bonuses, commissions, and taxable benefits from an employer, excluding any non-employment sources like investments, rentals, or self-employment):

  • Residency and Tax Status: You must be a UK tax resident or treated as such for the tax year. Non-residents may still be liable if they have UK-sourced employment income.
  • Employment Relationship: You must have an employment contract or be treated as an employee (e.g., not a self-employed contractor). This includes income from direct employment, such as pay before deductions, tips not included on your P60, and taxable benefits like company cars or private medical insurance.
  • Taxable Income Exceeds Personal Allowance: Liability arises if your total taxable employment income exceeds the Personal Allowance of £12,570. Income below this is tax-free. All direct employment income counts toward this, after any allowable deductions (e.g., pension contributions or professional subscriptions).
  • No Exemptions Apply: Certain income may be exempt (e.g., some disability payments or specific statutory exemptions), but standard employment pay is taxable if above thresholds.

If these criteria are met, tax is calculated progressively based on income thresholds:

  • Personal Allowance: £0 to £12,570 – 0% tax.
  • Basic Rate Band: £12,571 to £50,270 – 20% tax.
  • Higher Rate Band: £50,271 to £125,140 – 40% tax.
  • Additional Rate Band: Over £125,140 – 45% tax.

Impact of Income Thresholds:

  • Personal Allowance Taper: If adjusted net income (including employment income) exceeds £100,000, the Personal Allowance reduces by £1 for every £2 over £100,000. It reaches £0 at £125,140, effectively increasing the marginal tax rate to 60% in the £100,000–£125,140 band due to the loss of allowance.
  • Other Threshold Effects: Employment income over £50,270 may trigger higher rate tax, affecting reliefs like pension contributions (higher relief claimable). Income over £60,000 may activate the High Income Child Benefit Charge (a tapered charge up to 100% of benefit at £80,000+), though this is not direct tax on income but related. Student loan repayments or other deductions may also apply based on income levels.
  • PAYE vs. Self-Assessment: Most employment income is taxed via Pay As You Earn (PAYE) by the employer. However, if income thresholds lead to under/overpayment (e.g., due to allowance taper), adjustments may be needed, potentially via Self-Assessment.

These thresholds ensure progressive taxation, with higher earners paying more proportionally. For 2024/25, HMRC can often handle allowance taper adjustments via PAYE tax codes without requiring Self-Assessment for pure PAYE employees.

Employment Income

HMRC Self-Assessment is typically not required if your only income is from direct employment taxed fully via PAYE. However, even with solely employment income, you may need to file if certain criteria are met (e.g., due to income levels or specific circumstances). For the 2024/25 tax year:

  • High Income Thresholds: Previously, income over £100,000 (or £150,000 for 2023/24) often required Self-Assessment due to Personal Allowance taper calculations. For 2024/25, this is no longer automatic if all income is PAYE-taxed, as HMRC can adjust via your tax code. However, if your employer cannot or does not fully account for the taper, or if you need to confirm/claim adjustments, Self-Assessment may still be needed.

Information to Enter in Each Box on the Tax Return

For HMRC Self-Assessment based solely on employment income, the main form (SA100) requires basic tailoring (e.g., answering “Yes” to having employment income and indicating the number of employments), but detailed employment information goes in the SA102 supplementary page. Below is a list of every box on SA102 and the required information, focusing on direct employment income only. (SA100 has no dedicated employment boxes beyond tailoring questions; all specifics are in SA102.)

Use a separate SA102 page for each employment.

  • Box 1: Pay from this employment – Enter the gross pay before tax deductions (from P60 “In this employment” or P45 “Total pay in this employment”). Include furlough payments or disguised remuneration loans. If negative due to clawback, enter 0 and claim relief elsewhere.
  • Box 2: UK tax taken off pay in box 1 – Enter UK tax deducted (from P60 or P45). Use a minus sign if refunded (indicated by ‘R’). Include tax on disguised remuneration paid by employer.
  • Box 3: Tips and other payments not on your P60 – Enter untaxed tips or gratuities not from employer (e.g., direct customer payments).
  • Box 3.1: Pension contribution – payment from HMRC – Enter HMRC top-up payments for net pay pension schemes.
  • Box 4: PAYE tax reference of your employer – Enter employer’s PAYE reference (from P45/P60). Write “None” if absent.
  • Box 5: Your employer’s name – Enter full employer name.
  • Box 6: If you were a company director – Put ‘X’ if you were a director (even part-time).
  • Box 6.1: If you ceased being a director before 6 April 2025 – Enter cessation date (DD MM YYYY) if applicable.
  • Box 8: If this employment income is from inside off-payroll working engagements – Put ‘X’ if income from IR35/off-payroll rules (e.g., via personal service company with deductions paid to HMRC).
  • Box 8.1: If box 1 includes any disguised remuneration income – Put ‘X’ if applicable.
  • Box 9: Company cars and vans – Enter cash equivalent (from P11D, if not payrolled).
  • Box 10: Fuel for company cars and vans – Enter cash equivalent or amount foregone (from P11D, if not payrolled).
  • Box 11: Private medical and dental insurance – Enter value (from P11D, if not payrolled).
  • Box 12: Vouchers, credit cards and excess mileage allowance – Enter values (from P11D, if not payrolled; e.g., vouchers over limits or mileage above approved rates).
  • Box 13: Goods and other assets provided by your employer – Enter market value (from P11D, if not payrolled).
  • Box 14: Accommodation provided by your employer – Enter cash equivalent (from P11D, if not payrolled).
  • Box 15: Other benefits (including interest-free and low interest loans) – Enter total value (from P11D, if not payrolled).
  • Box 16: Expenses payments received and balancing charges – Enter amounts (from P11D, if not payrolled).
  • Box 17: Business travel and subsistence expenses – Enter allowable expenses you paid (e.g., business mileage shortfall below approved rates; keep records).
  • Box 18: Fixed deductions for expenses – Enter flat-rate allowances (e.g., for tools/clothing; from tax code or standard rates).
  • Box 19: Professional fees and subscriptions – Enter approved professional body fees.
  • Box 20: Other expenses and capital allowances – Enter other allowable costs (e.g., home working, equipment; claim capital allowances for qualifying items).

Checklist of Documents, Evidences, Receipts, Invoices, and Forms

Usually you will need:

  • P45 (‘Details of employee leaving work’)
  • P60 (‘End of Year Certificate’)
  • P11D (‘Expenses and benefits’)

How HMRC processes paper returns: the hidden wiring

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HMRC Paper Tax Return Processing: A Stage-by-Stage Guide

Think of HMRC’s paper tax return processing like a factory assembly line where each document passes through multiple quality control checkpoints. Each stage has specific legal requirements, timings, and potential bottlenecks. Here’s how it works:

STAGE 1: Receipt and Logging

What Happens

Returns arrive at HMRC and are first logged into the Local Data Capture (LDC) system – a separate computer system specifically for processing returns.

Legal Basis

  • Section 8 & 8A TMA 1970: Returns must provide “information reasonably required for the purpose of establishing the amounts in which a person is chargeable”

Key Infrastructure Limitation

LDC operates independently – it cannot access the main computer system during logging and capture. This is like having a sorting facility that can’t see the main warehouse inventory while sorting packages.

Delays Can Occur From:

  • High volume periods (October deadline creates bottlenecks)
  • Returns arriving without proper identification
  • Physical damage to documents requiring special handling

STAGE 2: Initial Assessment & Triage

What Happens

Returns are assessed for quality and completeness. They’re categorized as either:

“Process Now” – Straightforward returns that can be processed quickly

  • or – Requiring Repairs – Returns needing corrections before full processing

Legal Authority for Repairs

Section 9A TMA 1970 permits HMRC to repair “obvious errors and mistakes” within 9 months of receiving the return

Types of Issues Identified:

  1. Obvious errors (arithmetic mistakes, wrong figures carried forward)
  2. Unsatisfactory returns – failing to meet Section 8 TMA 1970 requirements

Delays Can Occur From:

  • Unsatisfactory returns requiring correspondence with taxpayers before processing
  • Complex cases needing manual review
  • Returns with more than 10 repairs (requiring separate letters instead of automated processing)

STAGE 3: Data Capture & Entry

What Happens

Return information is entered into the LDC system through the CAPTURE RETURN function. This is manual data entry by HMRC staff.

Infrastructure Limitations

This is a significant bottleneck – think of it as transcribing handwritten documents into a computer, one box at a time. Unlike online returns that arrive digitally, paper returns require:

  • Manual reading of handwriting
  • Interpretation of figures
  • Entry into multiple data fields

Delays Can Occur From:

  • Illegible handwriting requiring clarification
  • Volume surges after October 31st deadline
  • Staff availability – limited number of operators with necessary user roles
  • Complex returns with multiple supplementary pages taking longer to process
  • Partnership returns requiring additional Standard Accounts Information (SAI) capture

STAGE 4: Revenue Calculation (If Requested)

What Happens

If the taxpayer requested HMRC to calculate their tax (rather than doing it themselves), HMRC performs this calculation.

Legal Obligation & Critical Timing

For returns submitted by 31 October following the tax year end, HMRC is obliged to calculate the tax.

However: If submitted late, HMRC will still calculate on request “but cannot promise to do so before 31 January” following the end of the SA year.

This is a critical policy limitation – like a restaurant warning they can’t guarantee service times for late orders.

What’s Generated

  • Tax Calculation (SA302)
  • Revision Notice (if repairs made) – detailing corrections and reasons
  • Customer Service Messages (maximum 10) – advice on return completion

Delays Can Occur From:

  • Late submission after October 31st
  • Returns requiring extensive repairs
  • Cases needing more than 10 repair/customer service messages (requiring separate correspondence)

STAGE 5: Posting to Main Computer System

What Happens

Information captured in LDC is transferred to the main computer system and “posted” (recorded) to the taxpayer’s permanent record.

Legal Implications

Once posted:

  • Self-assessment becomes official
  • Payment obligations crystallize
  • Interest calculation begins on late payments
  • The enquiry window opens – HMRC has 12 months from receipt date to open compliance enquiries

Infrastructure Issue

This is a batch process, not real-time. There’s a time lag between capture and posting, similar to how banks process transactions overnight rather than instantly.

Delays Can Occur From:

  • System processing cycles
  • Validation errors requiring manual intervention
  • Need to coordinate with other systems (PAYE, payments)

STAGE 6: Generation & Issue of Tax Calculation

What Happens

HMRC sends the taxpayer:

  • Tax calculation showing liability
  • Revision Notice (if repairs made)
  • Statement showing account position

Timing Constraints

For returns submitted:

  • By 30 September (pre-2007-08) or 31 October (2007-08 onwards): Calculation issued with time to pay by 31 January
  • After these dates: Calculation issued but may not arrive before 31 January payment deadline

Policy Rationale

The October deadline exists to ensure taxpayers receive calculations with sufficient time to arrange payment before the 31 January deadline – giving them roughly 3 months’ notice.

Delays Can Occur From:

  • High volumes after October deadline
  • Cases requiring special handling (more than 10 repairs)
  • Postal delays

STAGE 7: Enquiry Window & Compliance Period

What Happens

After posting, HMRC has a 12-month enquiry window starting from the date the return was received.

Legal Framework

  • For 2007-08 onwards: 12 months from date return received
  • For 2006-07 and earlier: 12 months from filing date, or until the quarter date following the first anniversary if filed late

Why This Matters

HMRC can make amendments during this period under Section 9A TMA 1970. After the window closes, changes require:

  • Discovery assessments (more complex legal process)
  • Taxpayer amendments within limited timeframes

Delays in Finalizing Cases From:

  • Returns received just before the enquiry window deadline
  • Cases selected for compliance checks
  • Requests for additional information

Key Infrastructural Limitations Throughout:

  1. Dual System Architecture: LDC operates separately from the main computer, requiring data transfer between systems
  2. Manual Processing Dependency: Unlike online returns, paper requires human data entry
  3. Batch Processing: Updates happen in cycles, not real-time
  4. Volume Sensitivity: October 31st deadline creates processing bottlenecks
  5. Limited Automation: Maximum of 10 repair/customer service messages can be automated; more require manual letters
  6. User Role Requirements: Only staff with specific user roles can process returns, limiting flexibility

Critical Policy & Legal Timeframes:

EventDeadlineLegal BasisConsequence of Missing
Paper return filing31 OctoberSection 8 TMA 1970£100 penalty
HMRC calculation guarantee31 October submissionRevenue obligationNo guaranteed calculation before 31 January
Payment due31 JanuarySection 59B TMA 1970Interest charges, penalties
Repair window9 months from receiptSection 9A TMA 1970Cannot make simple corrections
Enquiry window12 months from receiptSection 9A TMA 1970Limited ability to challenge return

The entire process reflects a tension between thorough manual checking (ensuring accuracy and preventing errors) and processing speed (meeting statutory deadlines). The infrastructure limitations mean that late submissions create a cascading effect – like traffic congestion where each delayed vehicle slows down all those behind it.

How would I apply for a Time to Pay arrangement: what HMRC asks for and how it affects penalties

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Here’s a clear, practical walkthrough of how to set up a Time to Pay (TTP) arrangement with HMRC and what it means for your Self Assessment liability

Time to Pay (TTP) — What It Is

A Time to Pay arrangement lets you spread your Self Assessment tax bill over affordable monthly instalments if you can’t pay it in full by the deadline.

It’s not automatic — you must apply, but HMRC routinely agrees if:

  • You have a good compliance history,
  • The tax debt is temporary (e.g., cash flow issues), and
  • You show that you can keep up with the new payment plan.

Example: Your Case

You owe £1,500 (balancing payment) for 2024/25, due 31 January 2026.
You can’t pay the full amount but could manage £250/month.

You can ask HMRC for a 6-month Time to Pay plan from February to July 2026.

How to Apply

 Online (fastest)

If your circumstances are straightforward, you can do it online:

  • Log into your HMRC online account
  • Select “Set up a payment plan”
  • You can usually do this within 60 days of the payment deadline
  • Must owe < £30,000, have no other payment plans, and your tax returns must be up to date

 HMRC will:

  • Approve automatically (no phone call needed)
  • Confirm the monthly amount and end date
  • Begin collecting payments by Direct Debit

By phone (complex cases)

Call the Self Assessment Payment Helpline:
 0300 200 3822
(Open Monday–Friday, 8am–6pm)

Have ready:

  • Your UTR (Unique Taxpayer Reference)
  • The amount you owe and what you can pay upfront
  • A monthly payment proposal
  • Basic info about your income, outgoings, and savings

HMRC will assess affordability and agree a reasonable plan.

How It Affects Interest & Penalties

TypeWhat happens under TTP
InterestContinues to accrue until the debt is cleared, at the usual HMRC rate (e.g., 7.75%)
Late payment penaltiesPaused once the arrangement is agreed and you stick to it
New penaltiesNone added as long as you keep up payments
DefaultingIf you miss a payment, HMRC can cancel the plan and restart penalties

Example Outcome

You agree to pay £1,500 in 6 instalments of £250 starting 28 Feb 2026.
Interest over 6 months at 7.75% ≈ £44.

Total payable = £1,544 spread over 6 months.

As long as you:

  • Make each payment on time, and
  • File future returns and payments promptly,

No late payment penalties are applied.

Tips for a Successful Plan

  • Offer to pay something upfront (even 10–20%) — HMRC views this positively.
  • Be realistic — it’s better to propose a smaller, sustainable amount than to miss a payment.
  • If your income changes, you can amend the plan by contacting HMRC early.
  • Keep a record of every conversation or confirmation email.

How HMRC calculates the interest during a Time to Pay plan (with the month-by-month breakdown)

Let’s walk through a month-by-month example showing how HMRC calculates interest under a Time to Pay (TTP) arrangement for your Self Assessment balance

Example: Interest During a Time to Pay Arrangement

Scenario

ItemDetails
Tax owed£1,500 (2024/25 balancing payment)
Due date31 January 2026
TTP agreed6 monthly instalments of £250 starting 28 February 2026
HMRC interest rate7.75% per year (Bank of England base + 2.5%)

⚙️ How HMRC Works It Out

  • Interest is charged daily on the remaining unpaid balance.
  • Each time you make a payment, the outstanding balance drops, and daily interest thereafter is calculated on the reduced amount.
  • The formula HMRC uses is:
    [
    \text{Interest} = \text{Balance} × \text{Rate} × \frac{\text{Days outstanding}}{365}
    ]

Payment Plan & Interest Breakdown

MonthPayment dateBalance before paymentDays interest chargedInterest this periodNew balance
Feb 202628 Feb£1,50028 days£1,500 × 7.75% × 28/365 = £8.91£1,250
Mar 202631 Mar£1,25031 days£1,250 × 7.75% × 31/365 = £8.23£1,000
Apr 202630 Apr£1,00030 days£1,000 × 7.75% × 30/365 = £6.37£750
May 202631 May£75031 days£750 × 7.75% × 31/365 = £4.93£500
Jun 202630 Jun£50030 days£500 × 7.75% × 30/365 = £3.18£250
Jul 202631 Jul£25031 days£250 × 7.75% × 31/365 = £1.64£0

🧾 Total Interest Charged

Add the six interest amounts:

[£8.91 + £8.23 + £6.37 + £4.93 + £3.18 + £1.64 = £33.26]

Total interest = £33.26

So your total cost over 6 months is:

[£1,500 + £33.26 = £1,533.26]

Key Points

  • HMRC calculates interest up to the date each instalment is paid.
  • If you pay earlier, interest stops on that amount — so you save money.
  • If you miss or delay a payment, HMRC recalculates interest on the full balance again and may cancel the TTP.

What penalties apply if I miss balancing payments or payments on account?

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Let’s build on the same example and show exactly how HMRC charges interest and penalties if you pay late under Self Assessment

Example: Late Payment Interest & Penalties under Self Assessment

We’ll continue with your 2024/25 example:

Type of paymentDue dateAmount
1st Payment on Account31 Jan 2025£6,000
2nd Payment on Account31 Jul 2025£6,000
Balancing Payment31 Jan 2026£1,500

 Step 1 – Interest for Late Payment

HMRC charges daily interest from the day after payment was due until the day it’s actually paid.

  • Rate: Based on the Bank of England base rate + 2.5% (as of 2025, that’s typically around 7.75% per year, but it can change quarterly).

Example:
If you paid your £6,000 July instalment 60 days late and the rate was 7.75%:

[
Interest = £6,000 × 7.75% × \frac{60}{365} = £76.16
]

You’d owe £6,076.16 total.

Step 2 – Late Payment Penalties

Since 2010–11, HMRC applies Late Payment Penalties under Schedule 56 FA 2009 — these are separate from interest.

They apply to any unpaid Self Assessment tax, including balancing payments and payments on account.

Days LatePenalty % of tax unpaid
30 days late5%
6 months lateAdditional 5%
12 months lateFurther 5%

Example:
You didn’t pay your £1,500 balancing payment due on 31 January 2026 until 15 August 2026 — that’s 197 days late.

→ Penalty timeline:

  • After 30 days (2 March 2026): 5% × £1,500 = £75
  • After 6 months (31 July 2026): another 5% × £1,500 = £75
  • Total penalty by payment date = £150
  • Plus interest for ~197 days (~£63 at 7.75%)

So you’d owe £1,713 total (£1,500 + £150 + £63 interest).

Step 3 – Summary

ComponentDescriptionAmount
TaxBalancing payment due£1,500
Interest197 days @ 7.75%£63
Penalties2 × 5%£150
Total payable£1,713

Key Tips

  • Always pay by 31 January and 31 July to avoid both interest and penalties.
  • You can make advance payments or set up a Budget Payment Plan through your HMRC online account.
  • If you can’t pay in full, contact HMRC for a Time to Pay arrangement — this pauses further penalties, though interest still runs.

A numerical example of how self-assessment liability is calculated

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Here’s a numerical example showing how HMRC calculates your expected liability under Self Assessment

 Example: Calculating Expected Liability

Background

  • Your total tax and Class 4 National Insurance liability for 2023/24 (after PAYE and other credits) = £12,000.
  • You are self-employed and still trading in 2024/25, so HMRC assumes your next year’s liability will be roughly the same.

Step 1 – Work out the payments on account

Expected liability for 2024/25 is based on 100% of the previous year’s liability, split into two instalments:

[£12,000 × 50% = £6,000 \text{ per instalment}]

  • 1st Payment on Account (POA) – due 31 January 2025 = £6,000
  • 2nd Payment on Account (POA) – due 31 July 2025 = £6,000

You will therefore have paid £12,000 on account by 31 July 2025.

Step 2 – File the 2024/25 tax return

Suppose your actual tax liability for 2024/25 turns out to be £13,500.

Step 3 – Work out the balancing payment

[Actual liability (£13,500)} − \text{Payments on account (£12,000)} = £1,500]

That £1,500 is your balancing payment, due 31 January 2026.

Step 4 – Calculate next year’s payments on account

HMRC will now base your 2025/26 expected liability on this latest figure (£13,500), unless you claim to reduce it.

[£13,500 × 50% = £6,750 \text{ per instalment}]

So your next two payments on account will each be £6,750, due 31 January 2026 and 31 July 2026.

Step 5 – If your income drops

If you know your 2025/26 profits will be lower, you can apply to reduce your payments on account.
For example, if you expect your liability to fall to £10,000, you can claim to reduce each POA to:

[£10,000 × 50% = £5,000]

 If you reduce too much and end up owing more, HMRC will charge interest on the shortfall.

How is the expected liability under self-assessment calculated?

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The expected liability under Self-Assessment (SA) is calculated based on statutory guidance outlined in Section 59A and Section 59B of the Taxes Management Act 1970, as referenced in your document.

Here’s how it works:

  1. Starting point – prior year’s liability
    HMRC calculates your expected liability for the current tax year using your previous year’s total income tax and Class 4 NIC liability, less any tax already deducted at source (for example, PAYE or CIS).
  2. Payments on account
  3. You are normally required to make two payments on account, each equal to 50% of the previous year’s net liability.
  4. Adjustments and balancing payment
  5. Once your Self Assessment tax return is filed, HMRC calculates the actual liability for the year.
  6. The difference between the actual amount owed and what has already been paid on account becomes your balancing payment, due by 31 January following the end of the tax year (Section 59B (1) – (4)).
  7. Reductions or claims
    You may make a claim to reduce your payments on account under Section 59A(3) and (4) if you reasonably expect your current year’s income to be lower
    However, excessive reductions made negligently or fraudulently can attract penalties under Section 59A(6).

So in summary:

Expected SA liability = 100% of the prior year’s net income tax and Class 4 NIC liability (excluding tax deducted at source), paid as two equal instalments on 31 January and 31 July.
Any remaining balance is paid the following 31 January once the actual figures are known.

How does HMRC process appeals from partnerships?

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Partnership appeals have specific procedures that differ significantly from individual appeals. Here’s how HMRC handles them:

Who Can Make Partnership Appeals

Strict Authority Requirements:

  • Must be made by the nominated partner on behalf of all relevant partners
  • OR by an authorized agent acting for the partnership/nominated partner
  • Appeals from non-nominated partners will be refused
  • Tribunals may reject appeals not made by the nominated partner

Verification Process: If it’s unclear who the nominated partner is, HMRC will:

  • Issue SEES form SA670 to confirm the nominated partner’s name
  • Make a Free Format Note on the Partnership record noting either:
    • “DD/MM/YY SA670 received. Nominated partner is [name]”
    • “YY/YY box 11.3 shows nominated partner as [name]”

Alternative Acceptance: Appeals can be accepted from:

  • Partner shown in box 11.3 on internet-filed returns (current or previous year)
  • Person who signed the paper return (if box 11.3 is empty)
  • Agent acting for all partners (though verification may be needed for large partnerships)

Special Circumstances

Death of Nominated Partner:

  • Successor is generally the person nominated by majority of other partners
  • Must include personal representative of deceased partner in the majority
  • SEES form SA670 must be issued to confirm new nominated partner

Agent Representation:

  • Can accept from agent acting for all partners
  • For large partnerships (hundreds of partners), practical verification may not be possible
  • Issue SA670 to confirm nominated partner details

System Recording Process

Unique Aspects for Partnerships:

  1. Record Location:
    • Appeal recorded only on partnership record
    • Do NOT record on individual partner records
    • Use penalty imposition date as charge creation date (may need to check partner records to find this)
  2. Standover Procedures:
    • Informal standover penalty in full on each individual partner’s record
    • Note work list items: “Working with Partnership, responsible office and UTR”
    • Not necessary to record appeal on individual partner records
  3. Cross-Reference Management:
    • Partner records should note any work list items
    • Include reference to partnership responsible office
    • Maintain clear audit trail between partnership and individual records

Settlement Process

When Appeal is Settled:

  1. Update Individual Records:
    • Where possible, update each individual partner’s record
    • Reduce standovers to nil
    • If direct updating not possible, inform responsible office for each partner
  2. Tribunal Considerations:
    • Ensure tribunal understands they’re considering penalties on all partner records
    • Provide clear documentation of all affected partners
  3. Communication:
    • Notify all relevant offices of settlement outcome
    • Ensure consistent treatment across all partner records

Penalty Application Rules

Late Filing Penalties:

  • All partners charged if partnership return not filed by due date
  • Appeals must go through nominated partner
  • Try to settle immediately if possible

Processing Approach:

  • Handle through partnership record using nominated partner authority
  • Apply informal standovers to individual partner penalties
  • Maintain coordination between partnership and individual records

Administrative Notes

Work List Management:

  • Appeals appear on partnership work list
  • Individual partner standovers noted separately
  • Cross-referencing essential for tracking

Documentation:

  • Retain clear records of nominated partner status
  • Document any changes in partnership composition
  • Maintain audit trail for tribunal purposes

Quality Control:

  • Regular review to ensure all partner records updated
  • Coordinate between multiple responsible offices if needed
  • Monitor for prompt settlement across all affected records

This partnership-specific process ensures that while the appeal is centrally managed through the nominated partner, the practical effects (like standovers) are properly applied to all affected individual partner records, maintaining both legal compliance and administrative efficiency.