Discovery Assessments - Questions

[CallemP]

Hello
If a discovery assessment has been raised, have HMRC the right to ask questions about the tax year on which the discovery assessment has been made? I was of the understanding that if an assessment has been raised then they have reached their conclusion and have calculated any tax that they believe is due. Is asking questions a fishing expedition as no enquiry was raised, only a discovery assessment?
Kind regards
Callem

[bd6759]

Does the discovery assessment cover all the tax that is due?

HMRC can, and do, make further assessments if they make another discovery.

[wamstax]

Of course if you appeal the assessment then you will open up dialogue and need to provide evidence to sustain your appeal.
If you do not appeal then depending on their available information they may well be able to discover further matters that may lead them to suspect that further tax was unpaid and justify raising a FURTHER discovery assessment. They may also then open up further opportunities for going for penalties and further dues.
If of course the client accepts an assessment knowing it to be inadequate then of course they also risk HMRCviewing that there has been deliberate behaviour and tax evasion with matters becoming more serious.
Also risk another officer may review matters and co e to a decision that further taxes were due

[CallemP]

Hello BD6759
The discovery assessment covers all the tax that is due for the relevant year.
Thanks

[wamstax]

On that basis and that you have not appealed only questions may relate to the relevant behaviour for the year and relate to penalties that must be assessed within 12 months of the further assessment becoming final.