IFM28115 | Real Estate Investment Trust : Distributions: administration: quarterly returns: due dates, assessments etc

Due dates for return and payments

The return and the amount of tax shown as deducted from PIDs paid in the return period must be submitted to HMRC within 14 days of the end of the return period. If a return is made late or incorrect, the same penalty provisions as apply for ITA2007/Part 15/Chapter 15 returns apply (penalties of up to £300 for initial failure and £60 per day for continuing failure and penalties of up £3,000 for incorrect returns – TMA1970/S98).

If the amount of tax shown on the return is paid more than 14 days after the due date, interest under TMA1970/S87 is chargeable in the same way as for overdue ITA2007/Part 15/Chapter15 payments.

Assessments to recover tax

Although the requirement to pay over tax deducted from payments of PIDs does not require an assessment, there are powers in regulations 8 and 9 of SI 2006/2867 for HMRC to make an assessment in certain circumstances. An assessment may be made if tax shown in a return has not been paid on time, or if HMRC thinks that a PID has been omitted from the return or the return is otherwise incorrect.

Time limits for making assessments under regulations 8 and 9

The normal time limits for making assessments for a tax year apply to assessments made under regulations 8 and 9. If the assessment relates to a return period that is not a tax year, the same time limits apply (regulation 10).

The provisions in section 36 TMA for making assessments out of time where there has been fraudulent or negligent conduct also apply to assessments made under regulations 8 and 9.

Note that the arrangements for these assessments are similar to those for making assessments under ITA2007 /Part 15 in respect of relevant payments.