V18.151 Assessments
HMRC has powers to make assessments under FA 1994, s 56. Assessments can be made in the following circumstances.
Failure to make returns
HMRC may assess the tax due from an insurer or taxable intermediary who fails to make a return which he is required to make. The tax must be assessed to the best of HMRC's judgement1.
Failure to either submit a return or pay the tax due by the due date will result in a penalty of the greater of 5% of the tax due or £250 and a penalty of £20 for every day after the due date that failure to pay the tax due or failure to render the return continues.
Recovery of credit
HMRC may issue an assessment to recover any credit given to an insurer or a taxable intermediary which is found not to be due2. In addition there is a penalty regime for underdeclarations/failure
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Web page updated on 17 Mar 2025 13:09