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Tribunal Could Amend Taxpayer’s Self-Assessment Return

By Mark McLaughlin, July 2017
The Upper Tribunal held that the First-tier Tribunal had been wrong to conclude that it had no power to amend the taxpayer’s self-assessment return to reflect its findings of fact.

The respondent taxpayer was a subcontractor in the construction industry. His tax return for 2011/12 showed a repayment due of £6,040. Following an enquiry, HM Revenue and Customs (HMRC) amended the return, which reduced the amount of tax overpaid by £5,219 to £821. HMRC also updated the taxpayer’s self-assessment statement, which reflected that he was due to pay HMRC £3,983. The taxpayer appealed.

The First-tier Tribunal (FTT) ([2016] UKFTT 123 (TC)) found on the facts that £3,781 was repayable to the taxpayer. However, the FTT decided that it had no power to amend the taxpayer’s return to reflect what, on its findings, were the correct figures. This was because the FTT considered that the amendments
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