CTSA: quarterly instalments: 'quarterly instalment payer' (QIP) signal
COTAX recognises a case as a QIP (or a potential QIP) by the presence of a ‘QIP’ signal, set at accounting period level.
The signal may be set to ‘yes’, ‘no’ or ‘potential’. In outline:
- COTAX changes the signal to ‘yes’ or ‘no’ automatically when a return is captured, by reference to the presence or absence of an entry in the ‘quarterly instalment payments’ box on the return form.
- COTAX validates the information captured from the return to ensure that cases which appear to be QIPs cases, but which do not have the ‘yes’ signal set, are placed on the work list quarterly payer review list (QPRW). It also does this for cases where the ‘yes’ signal has been set but which do not appear to be QIP cases, see CTM92690.
- COTAX carries the ‘current’ value of a ‘N’ signal forward to the next accounting period. If the signal is ‘Y’ then COTAX sets the value in the next accounting period as ‘P’.
- Inspectors can change the value of the signal:
- using function MAPS (maintain accounting period signals),
- when making a Revenue determination or making or amending an assessment in functions PRED (prepare revenue determination) or RAMA (record/amend assessment).
For example, when you make a Revenue determination in the absence of a return, you must set the signal to ‘yes’ or ‘no’. (See CTM95370 about making a determination of the dates on which tax is payable, and the on-line COTAX Manual (COM), subject ‘Revenue determinations’ in the Assessing business area for the COTAX guidance.)
COTAX issues instalment payslips (see CTM92550) for the current accounting period if the signal is set to ‘yes’ or ‘potential’.
- It is the value of the signal, and nothing else, which determines whether or not COTAX treats the case for interest purposes as a QIP case. If cases on the COTAX Quarterly Payer Review List (QPRW) are not properly checked, incorrect credit or debit interest could arise.
- When an accounting period is superseded the ‘QIP’ signal is normally carried forward to the superseding accounting period.
See the COTAX Manual (COM), business area Pursuit for fuller information on the ‘QIP’ signal.