Finance Act 2022

HMRC to determine tax where no return made in time

12 (1) Where a person required to make a return as a result of paragraph 8 or 9 has not delivered that return, an officer of Revenue and Customs may determine to the best of the officer’s information and belief the amount of tax payable by the person.

(2) The power to make a determination under this paragraph becomes exercisable if no return is delivered before the end of the period in which the return must be delivered.

(3) The officer must give notice of a determination under this paragraph to the person, and that notice must state the date on which the determination is issued.

(4) A determination under this paragraph is to have effect as if it were a self-assessment contained in a return under (as the case may be) paragraph 8 or 9.

(5) But if a return is subsequently made containing a self-assessment of the tax, that determination is superseded by the self-assessment provided that return is made and delivered—

(a) no more than 12 months after the date of the determination, and

(b) no later than the end of the period within which a self-assessment may be made as a result of paragraph 8(5) or 10(5) (as the case may be).

(6) Where—

(a) proceedings have been commenced for the recovery of any tax charged by a determination under this paragraph, and

(b) before those proceedings are concluded, the determination is superseded by an assessment as a result of sub-paragraph (5),

those proceedings may be continued as if they were proceedings for the recovery of so much of the tax charged by the self-assessment as is due and payable and has not been paid.

(7) No determination under this paragraph may be made after—

(a) in the case of a determination in relation to a person required to make a return under paragraph 8, the end of the period of 4 years beginning with the day on which the person became liable to tax, or

(b) in the case of a determination in relation to a person required to make a return under paragraph 9, the end of the period referred to in paragraph 10(1).

(8) Where a determination is made under this paragraph, the amount determined is payable on the day after the end of the 14 day period beginning with the day on which an officer of Revenue and Customs notifies the person of the determination.