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HMRC internal manual

COTAX Manual

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HM Revenue & Customs
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Returns / notices: return handling: logging and capturing returns

This subject is presented as follows.

Introduction
Validation during capture
Exceptions to recording the self assessment in CRTN
Supplementary pages
Returns logged but not captured

Introduction

Returns submitted electronically using the Corporation Tax Online Service are logged, captured and the self assessment recorded automatically by COTAX whenever possible. If the return cannot be logged because COTAX cannot match the return to one of the APs on the record, it puts the case on EFRL (E-Filed Return Work List). You need to use function MAPD (Maintain AP Dates) to amend the AP structure and if you create an AP with the same start and end dates as shown on the return, COTAX should process it overnight. If it fails, you have to log and capture the return as ‘e-filed with manual intervention’ and record the self assessment.

When COTAX receives an e-filed return that it cannot match to an AP on the record, it sets inhibitions on all APs with outstanding returns to prevent the issue of:

  • payment and return reminders
  • penalty determinations.

The inhibitions remain in place until the AP record is amended and the return logged or the signal is unset.

When, exceptionally, the HO Technical Support Team has agreed to accept a paper return, a Clerical Caseworker should log it on the day of receipt, capture the details and record the self assessment.

If the HO Technical Support Team has told you that the company is an online filing exception on religious grounds, set the ‘e-filing exception’ signal using function ACTP (Amend Taxpayer Details) before manually logging the return.

Logging a return does not record a liability. The self assessment must be recorded after the return has been successfully captured. When you use function LRTN (Log Return), COTAX automatically flows to CRTN (Capture Return) and at the end of that function you can normally record the self assessment.

You should note that returns filed online on Saturdays and Sundays are given a COTAX ‘date logged’ of the preceding Friday, but the ‘date received’ is the correct date. It may look odd that the return appears to have been logged before the date of receipt, but it is a feature of the processing and can be ignored.

Validation during capture

When you are capturing a return, COTAX:

  • performs validation to ensure the figures you are capturing agree with its rules
  • highlights any apparent errors
  • allows you to amend or confirm those entries.

Remember that you must never ask for documentary evidence to support entries such as those for interest where the corresponding tax deducted does not appear to be correct. Such contact would constitute the opening of an enquiry and could jeopardise compliance activity required later on.

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

  • (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
  • (This content has been withheld because of exemptions in the Freedom of Information Act 2000)

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

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Exceptions to recording the self assessment in CRTN

There are some circumstances where COTAX cannot automatically record the self assessment for an online return and it stops you recording the self assessment if you are capturing the return manually. This happens in the following instances.

  • The return contains relief carried back from a later AP.
  • The date of receipt of the return is more than six years after the end of the AP. Although this time limit has been changed to four years by legislation, COTAX has not had funding to update it.
  • Exceptionally, there are claims present on a revenue determination linked to the AP.
  • There is an informal discharge or manual remission on the AP.
  • Tonnage Tax is on the return.
  • A revenue determination is awaiting issue on this, or a linked superseded AP.
  • ‘Ring fence Corporation Tax included’ has been captured but the case owner is not an Oil and Gas office.
  • Construction Industry tax deductions or tax repayable are present and the AP start date is after 5 April 2002. This can apply only to a paper return.

You must pass these cases to a CT Co-ordinator or Technical Caseworker to record the self assessment using Function RAMA (Record / Amend Assessment).

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Supplementary pages

The only supplementary page which is captured onto COTAX automatically or manually is the CT600J (Disclosure of tax avoidance schemes).

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Returns logged but not captured

LRLC (Returns Requiring Capture List) shows you any returns that need further attention.

See:

  • COM132021 for a list of functions to use in particular situations
  • COM132022 for legislation applying to this subject.