estimated assessment

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A tax assessment raised by HM Revenue based on the estimated profits or income of a taxpayer. The level of profits from the assessment of the previous period is often used as a rough indication of the expected profits for the assessment under consideration. The taxpayer has 30 days to appeal against the assessment. An estimated assessment will be revised once the actual profits or income for the fiscal year in question are known. Under self-assessment, estimated assessments are not normally raised.

Subjects: Accounting.

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