A taxpayer files a self assessment return on time. Within what period can HMRC normally open an enquiry into it?
Answer and explanation
Correct answer: D. Within 12 months after the date the return was filed
- Step 1: HMRC has a limited window to open an enquiry without needing grounds for a discovery assessment.
- Step 2: The window is 12 months after the actual filing date.
Answer
Within 12 months after the date the return was filed.
Why not the others: The window runs from the filing date and not from the tax year end. Three years is too long for the standard enquiry window. Twenty years is the discovery time limit for deliberate behaviour.
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