Amendment made

First-tier Tribunal’s jurisdiction to amend a self-assessment tax return

The taxpayer was a subcontractor in the construction industry. He claimed a repayment for 2011-12 which HMRC paid. The department later opened an enquiry into his return. It concluded he had understated his turnover overstated his deductions and could not substantiate his expenses claim. As a result HMRC demanded that the taxpayer return part of the earlier repayment.

The taxpayer appealed. The First-tier Tribunal had found in favour of the taxpayer but found he was entitled to a smaller repayment than the one made to him. However the tribunal said it had no power to amend his return under TMA 1970 s 50(6) and (7). HMRC challenged the tribunal’s decision on its power to amend returns.

The Upper Tribunal noted that under HMRC’s ‘process now check later’ policy when a taxpayer’s return shows they...