A jeopardy amendment lets an HMRC officer increase your self assessment before an enquiry is finished, if they think the tax returned is too low and that tax is likely to be lost unless they act immediately. The power is in section 9C of the Taxes Management Act 1970 (TMA 1970) for individuals and trustees and paragraph 30 of Schedule 18 to the Finance Act 1998 for companies. You can appeal within 30 days, but the appeal cannot go to review or the tribunal until the enquiry into that issue closes, so the main immediate protection is a postponement application.

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What is a jeopardy amendment?

HMRC’s Enquiry Manual at EM1951 describes it as an amendment an officer makes to the taxpayer’s self assessment when the enquiry cannot yet be closed. Because there can only be one self assessment for a year, the amendment replaces the figure you returned and the tax becomes collectible on that basis, subject to any postponement. EM3865 adds that any later amendment, whether yours or HMRC’s, displaces the earlier one.

It is different from a discovery assessment, which is a separate assessment, and from a closure notice, which ends the enquiry. A jeopardy amendment is an interim step taken while the enquiry is still running.

When can HMRC make one?

Section 9C(2) sets two conditions. The officer must form the opinion that:

  1. the tax payable stated in the self assessment is insufficient, and
  2. unless the assessment is immediately amended, there is likely to be a loss of tax to the Crown.

The power only exists while an enquiry under section 9A(1) is in progress, and only so far as the deficiency relates to the issue still under enquiry. Where an enquiry is limited to an amendment of the return under section 9A(5), section 9C(3) restricts the jeopardy amendment to the deficiency attributable to that amendment. Paragraph 30 of Schedule 18 contains equivalent rules for companies. EM1952 says that once a partial closure notice has settled the relevant issue, the officer must consider discovery instead, and that there is no limit on the number of jeopardy amendments, although successive ones should be rare.

The legislation does not list the situations that justify one, but EM1953 does. It says loss of tax is not limited to tax never being paid; it can include payment being delayed for an unreasonable time because of the taxpayer’s default. Officers are told to consider a jeopardy amendment where there is evidence that the taxpayer:

  • intends to dispose of significant assets;
  • intends to become non resident;
  • intends to apply for bankruptcy, or, for a company, to go into liquidation;
  • may be about to go to prison.

EM1953 also says HMRC should not issue one once a company is in liquidation or an individual has been made bankrupt. It may be considered where the taxpayer refuses to cooperate, but only once HMRC has established with some degree of certainty that the self assessment is deficient, and not to force cooperation. EM1951 says officers should consider one where a taxpayer will not make a payment on account and tax is at risk; see paying HMRC during an enquiry.

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When is the tax due?

For individuals and trustees, paragraph 4 of Schedule 3ZA TMA 1970 makes the extra tax payable by the day after the end of the 30 days beginning with the day the notice of amendment was given. For companies, EM1954 reproduces the standard notice wording, which tells the company that any tax shown is due now, that interest is charged on tax paid late, and that it may appeal within 30 days and apply to postpone tax it considers excessive.

EM1951 notes that a jeopardy amendment is not on its own a reason for HMRC to issue an early penalty determination.

How do you appeal?

Section 31(1)(a) gives a right of appeal against a section 9C amendment. Under section 31A the notice of appeal must be in writing, given within 30 days after the date the notice of amendment was issued, sent to the officer who gave it, and must state the grounds. For companies, paragraph 30(3) and (4) of Schedule 18 give the same 30 day right.

The catch is timing. Section 31(2) says that while the enquiry is in progress on the relevant issue, none of the steps in section 49A(2)(a) to (c) can be taken: you cannot require a review, HMRC cannot offer one, and you cannot notify the appeal to the tribunal until a partial or final closure notice is issued. Paragraph 30(5) has the same effect for companies. EM1955 tells officers not to try to settle the appeal until after the enquiry is completed.

Can you postpone paying the tax?

Yes. Section 55 TMA 1970 applies to appeals against section 9C and paragraph 30 amendments. If you have grounds to believe the amendment overcharges you, you can apply in writing to HMRC within 30 days of the date the notice of amendment was issued, stating the amount you think is overcharged and why. If HMRC does not agree the amount, you can refer the application to the tribunal within 30 days from the date of the document notifying HMRC’s decision. A later application is possible if circumstances change.

EM1955 confirms that the tribunal route is open for postponement even though the appeal itself is frozen. It also says HMRC cannot accept a postponement application without a related appeal, that you need not apply at the same time as appealing, and that there is no statutory review of a postponement decision. HMRC’s stated view is that little is achieved by making a jeopardy amendment and then postponing all of the tax, so expect resistance. More detail is in postponing tax pending an appeal.

What happens when the enquiry closes?

EM3865 says the closure notice will reach one of three conclusions: the jeopardy amendment was right, it was too low and a further amendment is needed, or it was too high and the self assessment must be reduced, occasionally below the figure originally returned. The appeal against the jeopardy amendment, and the liability it created, remain in existence until dealt with.

EM3867 explains how HMRC handles the two appeals:

  • If you appealed only the jeopardy amendment, HMRC will ask you to withdraw it or treat it as settled by agreement once the closure notice is final.
  • If you appealed both, HMRC will invite you to withdraw the jeopardy appeal and argue everything in the closure notice appeal; where both go forward, they should be heard together.
  • If you appealed only the closure amendment and argue for a figure lower than the jeopardy amendment, HMRC will tell the tribunal you did not appeal the jeopardy amendment at the time.

That last point is a good reason to appeal a jeopardy amendment you disagree with, even though the appeal cannot progress immediately.

A worked example

Illustration only. HMRC is enquiring into Dana’s return and has found strong evidence that her trading income is understated by about £40,000. She declines to make a payment on account. HMRC then learns she is selling her only property and plans to move abroad. The officer makes a jeopardy amendment adding the tax on £40,000. Dana appeals within 30 days and applies to postpone the part relating to £15,000 of disputed expenses. HMRC refuses, so she refers the postponement to the tribunal. The enquiry closes four months later with a closure notice based on £30,000. Dana appeals the closure notice, withdraws the jeopardy appeal, and argues the £30,000 figure in the closure notice appeal.

What mistakes should you avoid?

  • Not appealing because the appeal is frozen. The appeal protects your position and is a precondition for postponement.
  • Applying to close the enquiry instead. EM1982 says HMRC will point you to your appeal rights rather than a closure application; see asking the tribunal to make HMRC close an enquiry.
  • Ignoring the payment date. Without a postponement, the tax is collectible.
  • Assuming it is final. The closure notice can move the figure up or down.

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Reviewed by Christine Anderson, Broker, Solar Protect. Last reviewed 24 October 2026. Part of Accountapedia, the Solar Protect guide to UK tax and accounting. This page is general information, not personalised advice.