SAM121080 | Returns: individuals returns: returns for out of date years: individuals

HMRC’s longstanding view was that the time limit imposed for the making of an assessment also applied to Self Assessments. In September 2016 the law was changed to make it clear that in most circumstances customers have 4 years from the end of the tax year to make a Self Assessment.

Customers were given advance notice of the new law and to give them time to get their tax affairs up to date HMRC accepted Self Assessments for the tax years from 1996-97 to 2012-13 providing the tax return was made and delivered to HMRC by 5 April 2017 and the following criteria was met:

• A return had been requested by issue of a notice under S8 TMA 1970

• No determination had been raised for the year of the return

• It was an original return and NOT an amendment

From 6 April 2017 the usual time limit for making a Self Assessment is 4 years from the end of the tax year to which the Self Assessment relates.

Time limits are different for years where a determination has been made by HMRC.

Note: See Note 2 below if a Determination has already been made as different time limits may apply.

This guidance is for returns relating to CY-4 or earlier received on or after 06 April 2017, not amendments. For further information on how to deal with these cases, follow the Action Guide for Out of Date returns.

There will be cases where, for previous years, a return or Notice to file a return, has been given, and we agreed informally that for tax years 2010-11 and 2011-12, the return was no longer required, and for tax years 2012-13 onwards, we formally withdrew the Notice to file.

Issue of returns and time limit for self-assessment

Section 34A TMA 1970 sets out the time limit for making a Self Assessment. Customers have 4 years from the end of the tax year to make and deliver a tax return. It makes clear this does not apply when other statutory time limits apply. (This content has been withheld because of exemptions in the Freedom of Information Act 2000)

The guidance given to the SA processing office indicates that no out of date returns will be processed.

If a notice to file was issued within 4 years of the end of the tax year, the taxpayer will have 3 months from the date of the notice to submit a tax return under s34A. Any such returns should be processed, even where these returns are received more than 4 years from the end of the tax year. For example, if a notice to file for 2017-18 was issued on 1 March 2022 it should be processed up until 30 June 2022.

Return for out of date year not captured by relevant 5 April

The action required where returns for out of date years have not been captured in LDC by the relevant 5 April is as follows, Out of Date Returns - Returns for CY-4 or earlier, received on or after 6 April 2017 (hmrc.gov.uk) and you must record all the actions you take by selecting the SA Note (Individual return for out of date year (xxxx) (details of action taken)) from the SEES Notes Paster.

If the return was received within the relevant time limit for self assessment identified above as appropriate or, if later, the relevant time limit for superseding a Determination (see Notes: below)

• Use function CREATE RETURN CHARGE to record the return charge

Note: In these cases, corrections should not be made using S9ZB TMA 1970

Note: If there is an amount pre-populated in the ‘Outstanding debt included in your tax code field’ within CREATE RETURN CHARGE, you should use the SEES calculator to calculate the figures required. If you are unable to use the SEES calculator, you must reduce any PAYE tax included in the tax deducted at source figure, by the amount of the debt coded, before entering in function Create Return Charge.

Notes:

1. In all circumstances the Revenue Determination constitutes the self assessment and creates the Payment on Account for the subsequent year

2. A Revenue Determination can only be replaced by an actual self assessment made within three years of the filing date for the return, or if later, within 12 months of the date of the Revenue Determination. Further information is available in the Debt Management and Banking Manual, under subject ‘SA debt and return pursuit: Revenue Determinations: Time limits for a return to supersede a determination’ (DMBM518010)