Worklists: Action Guides: Manual Tax Treatment Qualification Test (TTQT)
Important note: The scheme is designed to ensure compliance reviews have consistent outcomes. The automated process will keep to the guidelines contained in the legislation; to ensure continuity of treatment, manual checks must do the same.
Compliance test criteria can be found at:
- FA04/SCH11/PART1/PARA4 - for sole traders.
- FA04/SCH11/PART2/PARA8 - for partnerships.
- FA04/SCH11/PART3/PARA12 - for companies.
Ideally, these criteria should be met in full but the scheme does allow for certain exceptions; these can be found at Table 3 of SI2005/2045, reg.32.
To complete a manual compliance check you will need to have been assigned an Exception Handler role for Finalise TTQT and you will need access to PEGA, CIS, SA, COTAX , EBS, and BROCS (for periods up to 5 April 2013) or ETMP (for periods from 6 April 2013). The following steps should then be followed:
- All Work Items are contained on a Work List stored on the PEGA system. Log onto this system in a Finalise TTQT Exception Handler role. Select ‘Get Next’. The system will place the next Work Item into your personal Workbasket. Work Items in the Workbasket can only be accessed and worked by the owner of the Workbasket.
- From the presenting Work Item details, make a note of the UTR.
- Log onto the CIS system.
- In the ‘Identify Customer’ window enter the UTR in the UTR field, and then ‘Internal Enquiry’ from the drop down menu under ‘Contact’, then select the [OK] button. This will bypass Authentication and take you straight to the CIS Main menu.
- From the CIS Main menu select the type of Registration for which you wish to finalise the TTQT. For example, where the subcontractor acts both as a sole trader, and as a partner in a partnership, select the box alongside one of these and then the ‘Manage TTQT’ function.
- This will now take you to the ‘Tax Treatment Details’ window. Under the heading Tax Treatment Qualification Test History, CISR will show you the results of where the TTQT is incomplete. Then select the [Finalise] button.
- The TTQT Summary window will now display showing you a list of all the test participants with incomplete results. This window also gives you the option of adding a participant where, for example, a new partner has joined a partnership but the new partner has not yet been tested. Where this is necessary select the [Add Participant] button and enter details of the new partner as required.
For a list of all possible failure exceptions and the action required for each, please see the sections at:
- CISR43680 (sole traders and individuals)
- CISR43690 (partnerships)
- CISR43700 (companies, unincorporated bodies and trusts)
of this Manual for further information.
The PEGA system will allow the Work Item to be dealt with in one of the following ways:
BF (Brought Forward):
For unresolved Work Items a BF date can be set at a minimum of 1 and a maximum of 14 days. Items on BF will be removed from the Exception Handler’s Workbasket and returned to the main Work List. When the BF date expires, the Work Item will become re-activated and will be allocated to the next Exception Handler to request a Work Item. This means it may not go back to the Exception Handler who previously worked it. When setting the BF it is therefore important that the free format note space is used to record all actions previously taken so that a full history of the Work Item is readily available.
If the compliance check is complete, the outcome of the check, whether pass or fail, should be recorded on the CIS system’s subcontractor record.
The Work Item should then be closed down on the PEGA system. This is done by selecting [Complete Item] from the drop down menu under the heading ‘Take Action’ and then selecting, from the drop down list, the reason for completing the Work item. This will remove the item from the Workbasket.
If a Work Item is assigned to the Workbasket but is found to have been resolved by other means, it can be rejected. Make a note of the reason for action taken and reject the item. This will remove the Work Item from the Workbasket.