The LFT legislation provides that where a person has failed to make LFT returns, or failed to keep documents necessary to verify returns, or failed to afford facilities necessary to verify returns, or it appears to HMRC that the person’s submitted returns are incorrect or incomplete, then they may assess the amount of tax due from that person to the best of their judgment and notify the person accordingly.
There are two types of assessment arising from the legislation:
(1)an assessment in respect of the tax itself; and
(2)an assessment in respect of interest and penalties.
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