Finance Bill (HC Bill 47)

(1) 30This section applies where a person has been given notice of a simple

(2) The person may query the simple assessment by notifying HMRC

(a) a belief that the assessment is or may be incorrect, and

(b) 35the reasons for that belief.

(3) The person may exercise the power to query the simple assessment
at any time within—

(a) the period of 60 days after the date on which the notice of
assessment was issued, or

(b) 40such longer period as HMRC may allow.

(4) If the simple assessment is queried, HMRC must—

(a) consider the query and the matters raised by it, and

(b) give a final response to the query.

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(5) The person may at any time withdraw a query (which terminates
HMRC’s duties under subsection (4)).

(6) If it appears to HMRC that—

(a) they need time to consider the matters raised by the query, or

(b) 5further information (whether from the person or anyone else)
is required,

HMRC may postpone the simple assessment in whole or part
(according to how much of it is being queried by the person).

(7) If the simple assessment is postponed in whole or part, HMRC must
10notify the person in writing—

(a) whether the assessment is postponed in whole or part, and

(b) if it is postponed in part, of the amount that remains payable
under the assessment.

(8) While the simple assessment is postponed the person is under no
15obligation to pay—

(a) the payable amount specified in the notice of assessment (if
the whole assessment is postponed), or

(b) the postponed part of the payable amount so specified (if the
assessment is postponed in part).

(9) 20After considering the query the final response must be to—

(a) confirm the simple assessment,

(b) give the person an amended simple assessment (which
supersedes the original assessment), or

(c) withdraw the simple assessment (without replacing it).

(10) 25HMRC must notify the person in writing of their final response.

(11) This section does not apply to an amended simple assessment given
as a final response to the query.

(12) Nothing in this section affects—

(a) a person’s right to request an explanation from HMRC of a
30simple assessment or the information on which it is based, or

(b) HMRC’s power to give a person such explanation or
information as they consider appropriate,

whether as part of the querying process under this section or

(13) 35In subsection (12) “person” means a person who has been given
notice of a simple assessment”.

7 (1) Section 59B (payment of income tax and capital gains tax) is amended as

(2) In the heading, at end insert “: assessments other than simple assessments”.

(3) 40In subsection (6), after “9” insert “, 28H or 28I”.

8 After section 59B insert—

59BA Payment of income tax and capital gains tax: simple assessments

(1) This section applies where a person has been given a simple
assessment in relation to a year of assessment.

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(2) Subject to subsection (3), the difference between—

(a) the amount of income tax and capital gains tax for that year
contained in the simple assessment, and

(b) the aggregate of any payments on account made by the
5person in respect of that year (whether under section 59A or
59AA or otherwise) and any income tax which in respect of
that year has been deducted at source,

is payable by that person as mentioned in subsection (4) or (5).

(3) Nothing in subsection (2) is to be read as requiring the repayment of
10any income tax which any provision of the Income Tax Acts provides
is not repayable.

(4) In a case where the person is given notice of the simple assessment
after the 31st October next after the year of assessment, the difference
is payable at the end of the period of 3 months after the day on which
15that notice was given.

(5) In any other case the difference is payable on or before the 31st
January next after the end of the year of assessment.

(6) Section 59B(7) (which explains references to income tax deducted at
source) applies for the purposes of this section.

(7) 20PAYE regulations may provide that, for the purpose of determining
the amount of the difference mentioned in subsection (2), any
necessary adjustments in respect of matters prescribed in the
regulations shall be made to the amount of tax deducted at source
under PAYE regulations.”

9 (1) 25Schedule 56 to FA 2009 (penalty for failure to make payments on time) is
amended as follows.

(2) In the Table in paragraph 1, after item 1 insert—

“1A Income tax or
capital gains
payable under
59BA(4) or (5)
of TMA 1970
The date falling 30 days
after the date specified
30in section 59BA(4) or (5)
of TMA 1970 as the date
by which the amount
must be paid.”

(3) In paragraph 3(1)(a), after “items 1,” insert “1A,”.