ANNEX 1:: MINOR CHANGES IN THE LAW Change 14: Relocation of section 152 of ICTA: Schedule 7
This change clarifies how an application to make a late objection to a notified amount of taxable benefit is handled in section 152 of ICTA.
Section 152 of ICTA deals with circumstances where an officer of the Department for Work and Pensions (DWP) notifies a benefit claimant of the amount of unemployment benefit, jobseeker’s allowance or income support that is part of the claimant’s income for tax purposes. The term “unemployment benefit” is retained as the wording of the legislation suggests that it may have a broader scope than the statutory name for the benefit, replaced by jobseeker’s allowance.
The claimant has 60 days in which to object to the notice. In addition, a claimant may make an objection after 60 days by making an “application for the purpose”. An officer of DWP must then consider the circumstances, and in particular whether the claimant had a reasonable excuse for the delay and took the necessary action without further unreasonable delay. If the officer is not satisfied the matter is referred to the tribunal.
But it is not clear if it is the application to make a late objection or the objection itself that must be made without further unreasonable delay. Section 152(5)(b) suggests that it is the objection, but that would mean that the objection would have to be made while the application to make the late objection was still under consideration.
Similar legislation can be found in section 49 of TMA concerning an application to make a late appeal. That provision is clear – it is the application that must be made without further unreasonable delay.
The rewritten provision in section 54B(4) of TMA makes it clear that it is the application to make a late objection that must be made without further unreasonable delay, and not the objection itself.
This change is in principle adverse to some taxpayers and favourable to others. But it is expected to have no practical effect as it is in line with generally accepted practice.