Withdrawal of a Notice to File: Section 8B TMA 1970

A notice to file a Self Assessment return may remain in force for a year in which the person has no income to report: for example, after self-employment has ceased, after the person has left the United Kingdom, or where the notice was issued in error. Late-filing penalties may nevertheless accrue for that year.

The obligation to deliver a return arises from a notice given by HMRC under section 8 of the Taxes Management Act 1970, not from the existence of a tax liability. Section 8B, inserted by Schedule 51 to the Finance Act 2013 and amended by section 169 of the Finance Act 2016, provides a statutory mechanism for withdrawing a notice to file.

1. The notice to file under section 8

Section 8 TMA 1970 permits an officer of Revenue and Customs to require a person, by notice, to make and deliver a return for a year of assessment. Once a notice is given, the obligation to file and the associated penalty regime apply whether or not tax is due for that year. Section 8A makes corresponding provision for trustees.

2. Withdrawal under section 8B

Section 8B applies where a notice under section 8 or 8A has been given. HMRC may withdraw the notice either at the request of the person to whom it was given or on HMRC's own initiative. Where HMRC decide to withdraw it, they must give a notice stating the date from which the original notice is withdrawn.

Withdrawal does not prevent HMRC from giving a further notice under section 8 or 8A for the same year of assessment.

3. The withdrawal period

A notice may be withdrawn only within the withdrawal period: two years beginning with the end of the year of assessment to which the notice relates, or such longer period as HMRC may determine in exceptional circumstances.

4. Cases in which withdrawal is not available

Section 8B(3) provides that a notice may not be withdrawn where the person has already delivered a return under it, or where HMRC have made a determination under section 28C TMA 1970 in consequence of the failure to deliver that return.

5. Effect on penalties

Paragraph 17A of Schedule 55 to the Finance Act 2009 provides that, where HMRC give notice under section 8B withdrawing a notice to file, any penalty under that Schedule for failure to make the return is cancelled.

6. Notification of chargeability after withdrawal

Withdrawal of a notice to file does not remove a liability to tax. Section 7 TMA 1970 requires a person chargeable to income tax or capital gains tax who has not received a notice under section 8 to notify HMRC. Section 7(1A) to (1C) provide that, where a notice has been withdrawn, the notification period ends on the later of six months after the end of the year of assessment and 30 days beginning with the day after the withdrawal.

7. Partnerships

Section 12AAA TMA 1970 makes corresponding provision for the withdrawal of a notice requiring a partnership return under section 12AA.

Key points

1. The obligation to file a Self Assessment return arises from a notice under section 8 TMA 1970.

2. HMRC may withdraw that notice under section 8B, at the person's request or on their own initiative.

3. The withdrawal period is two years from the end of the year of assessment, or longer in exceptional circumstances.

4. Withdrawal is not available once a return has been delivered or a determination under section 28C has been made.

5. Withdrawal cancels late-filing penalties under paragraph 17A of Schedule 55 FA 2009.

Legislation referenced

Taxes Management Act 1970, ss 7, 8, 8A, 8B, 12AA, 12AAA, 28C

Finance Act 2009, Schedule 55, para 17A

Finance Act 2013, Schedule 51

Finance Act 2016, s 169