A discovery assessment by HMRC in respect of a termination payment to the appellant was out of time as his employer deducted the correct amount of PAYE tax from the payment and the appellant was not required to notify any other source of income for the relevant tax year.
The appellant’s employment contract with his employer was terminated on 31 March 2008. The employer made a termination payment on 9 April 2008 after deducting basic rate tax on the excess over £30,000. HM Revenue and Customs (HMRC) did not send the appellant a tax return for 2007/08 or 2008/09, and the appellant did not notify HMRC of the termination payment.
HMRC issued a discovery assessment for 2007/08 in August 2015. The appellant appealed, contending that the assessment was made outside the statutory time limits.
The First-tier Tribunal (FTT) noted that the ordinary time limit for an assessment (under
