COM157112 - CT Pay and File: returns / notices: return handling: mismatched returns: action guide

To deal with a mismatched return for a CT Pay and File AP, the caseworker should consider steps 1 - 19 below. The guide is presented as follows.

Initial Action Steps 1 - 3

Assessing charge on superseded AP Steps 4 - 5

Carryback postings on superseded AP Steps 6 - 7

Multiple live APs in specified period Steps 8 - 9

New AP is longer than 12 months Steps 10 - 11

New AP overlaps AP with logged return Step 12 - 13

Start date of new AP before logged return Steps 14 - 15

Start date prior to commencement date Steps 16 - 17

Start date prior to earliest live AP Step 18

Start date prior to incorporation date Step 19

Initial Action

1. When clerical staff cannot log the return:

  • compare the dates on the return to the AP details on the COTAX record

  • check whether there is an assessment on any AP included within the return period

  • make sure the accounts and computations supplied are for a period of no more than 12 months.

2. If the return and accompanying documents are satisfactory, advise the clerical staff how to log and capture the return.

3. Refer to the appropriate section of this Action Guide if any further action is required.

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Assessing charge on superseded AP

4. There is an assessment on one or more APs that would be superseded by changing the AP structure to allow the return to be processed. If the assessment on the superseded AP has been recorded as a result of receiving a return, one of the returns must be for an incorrect period.

You must review the case and decide what action is required, discussing the facts with the company or its agent if necessary.

5. If you decide that the period for which a return has already been received is incorrect:

  • use Function URTN (Unlog Return) to unlog the earlier return

  • use Function MAPD (Maintain AP Dates) to amend the AP record

  • arrange to have both returns logged and captured.

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Carryback postings on superseded AP

6. There are carry back postings on one or more APs that will be superseded when the AP structure is changed to allow the return to be processed. If the return details are incorrect:

  • discuss the case with the company or agent to establish the correct periods and returns

  • if necessary, unlog the return on the AP to be superseded using Function URTN (Unlog Return).

7. Arrange to have both returns logged and captured for the correct APs.

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Multiple live APs in specified period

8. Recording the new AP start date shown on the return will supersede more than one AP in the specified period.

9. Use:

  • Function VPPD to see if there are any payments on the AP or APs to be superseded

  • Function MAPD (Maintain AP Dates) to change the AP record.

If there are any payments on an AP that has been superseded, COTAX reallocates them to the earliest new superseding AP. If it does not reallocate to the AP for which a return has been received, consider using REWD (Direct Reallocation Within COTAX) to reallocate the payment or payments.

Pass the return back to the Clerical Caseworker to be logged and captured.

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New AP is longer than 12 months

10. If you receive a return for an AP longer than 12 months, check whether it is for a dormant period.

If it is, use Function MAPD (Maintain AP Dates) to record the period of dormancy.

11. If the company appears to have been within the charge to CT then it is not a valid return.

If the return is for a company registered at Companies House, send the return back to the company with a request for early submission of a correctly completed return form, drawing attention to any approaching penalty deadlines.

If the return is for a small non-commercial organisation without professional advisors:

  • calculate the effect of the true AP position on the figures returned

  • where necessary, use Function MAPD to correct the AP structure

  • pass the return to the Clerical Caseworker to log and capture the revised return figures you have calculated.

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New AP overlaps AP with logged return

12. The AP dates shown on the return overlap an existing AP with a logged return. One of the returns must be incorrect.

A caseworker should investigate the reason for submission of the return and the correct course of action.

13. When you have decided on the correct course of action, go to step 5.

Note: Where an assessment exists on an AP to be superseded, you must relate that superseded AP to one of the newly created APs to prevent a stranded assessment

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Start date of new AP before logged return

14. A return is already logged with a start date later than the start date shown on the return received. One of the returns must be incorrect.

A caseworker should investigate the reason for the submission of the return and decide the correct course of action.

15. When you have decided on what action you need to take, go to step 5.

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Start date prior to commencement date

16. The AP start date shown on the return is before the date trade commenced recorded on the COTAX record.

Discuss the position with the company or its agent and decide whether the return and accounts supplied are correct.

If the return and accounts supplied are incorrect and the existing date of commencement and AP shown on the COTAX record are right:

  • amend the return details to agree the AP record

  • pass the return to the clerical staff to be logged and captured with the revised return figures you have calculated.

17. If the return information supplied is correct and the date of commencement needs to be amended:

  • enter the correct date of commencement using Function ACTP (Amend CT Payer Details)

  • change the AP structure using Function MAPD (Maintain AP Dates)

  • pass the return back to the clerical staff to be logged and captured.

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Start date prior to earliest live AP

18. The AP start date shown on the return is before the start date of the earliest live AP shown on COTAX.

  • Use Function MAPD (Maintain AP Dates) to amend the AP details.

  • Calculate any effect of the change of AP on the return figures provided.

  • Pass the return back to the clerical staff to be logged and captured.

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Start date prior to incorporation date

19. The start date shown on the return is before the company’s date of incorporation recorded on the COTAX record.

Find the correct date of incorporation from the Companies House website and if necessary, discuss the position with the company or its agent and decide whether the return and accounts supplied are correct.

If the return and accounts are incorrect and the existing date of incorporation shown on the record is correct:

  • amend the return details to agree the current AP record

  • pass the return back to the clerical staff to be logged and captured.