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HMRC internal manual

COTAX Manual

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HM Revenue & Customs
Updated
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Assessing: CTSA assessments: recording a self assessment (Action Guide)

To record a self assessment, consider steps 1 - 17 below. The guide is presented as follows.

Identifying cases with a captured return but no recorded self assessment Steps 1 - 3
Carry back captured on this return or DTR carry back present on return Step 4
Return received more than 6 years after the APE Steps 5 - 8
Revenue determination with claim for this AP Step 9
Informal discharge or manual remission on AP Steps 10 - 12
Tonnage Tax case Step 13
Assessment awaiting issue Step 14
CIS not applicable after 5 April 2002 Step 15
Oil Tax Step 16
Recording the self assessment Step 17

Identifying cases with a captured return but no recorded self assessment

  1.  Use function EFRL (E-Filed Return List) to see cases where a return has been received through the CT Online Service but no self assessment has been recorded automatically or use function RSAW (Record SA List) to see cases where a return has been logged and captured but no self assessment has been recorded.

  2.  Establish why the self assessment was not recorded automatically by using the [View] button to see details of the case.

  3.  Take the appropriate action below before recording the self assessment.

Carry back captured on this return or DTR carry back present on return

  1.  If a carry-back has been captured on the return, use the ‘record a self assessment’ option in function RAMA to record the self assessment and give effect to the carry-back.

If the carry-back relates to a later AP for which the company has not yet submitted a return, you must exclude the relief, correct the return and write to the company to explain why you have done so.

Return received more than 6 years after the APE {#}

  1.  The CT Online Service does not allow a return to be submitted for an out of date AP. Returns appearing on RSAW for this reason must have been submitted on paper.

If a return is received more than 4 years after the end of the AP, the general time limit for making assessments has expired.

The time limit was changed to 4 years by FA 2008, but COTAX still holds the rule of 6 years and for cases appearing on RSAW for this reason a return has been received more than 6 years after the end of the AP. This will be changed if funding becomes available.

The time limit may be extended if we have made a revenue determination and the return is delivered within the time limit for making the determination, or 12 months after the date of the determination if that is later.

  1.  Use function DASS (Display Assessment Details) to check if there is a revenue determination on the AP.

  2.  If the company is in time to deliver its return and self assessment:

  • use the ‘record a self assessment’ option in function RAMA (Record / Amend Assessment) to record it
  • at the end of RAMA, review the penalty position and decide whether to allow COTAX to amend the tax-related penalty automatically or use function PPEN (Prepare Penalty Determination).
  1.  If the company is out of time to deliver its return and self assessment:
  • write to the company and explain why the self assessment cannot be accepted
  • use function RAMA to make a discovery assessment to bring any additional tax into charge if the return shows greater liability than the revenue determination
  • at the end of RAMA, review the penalty position and decide whether to allow COTAX to amend the tax-related penalty automatically or use function PPEN (Prepare Penalty Determination).

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Revenue determination with claim for this AP

  1.  These cases are likely to be rare. If the self assessment was not recorded automatically because of claims present on a revenue determination on the AP,

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Informal discharge or manual remission on AP

10. A revenue determination has been made on the AP and subsequently informally discharged or manually remitted before the return was received. These cases are likely to be rare.

Confirm that you are viewing the correct AP record.

11. If a manual remission is present:

  • ask an officer in the Debt Management office to use function RREM (Record Remission) to cancel the whole amount of the original remission by posting a minus remission onto the company record
  • use function VPPD (View Payment and Posting Details) to confirm that the remission has been cancelled
  • use the ‘record a self assessment’ option in Function RAMA (Record / Amend Assessment) to record the self assessment.

12. If an informal discharge is present, the liability for the AP should have been included in an investigation contract settlement.

If so:

  • do not record the self assessment
  • use function URTN (Unlog Return) to unlog the return
  • review any penalty determination that may have been issued
  • enter a note of your actions in the MS104 (CTSA) accounts folder.

If not and the informal discharge was made in error:

  • use function RINF (Record Informal Discharge) to reinstate the liability
  • use function RAMA to record the self assessment.

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Tonnage Tax case

13. If the return contains an entry relating to Tonnage Tax, use the ‘record a self assessment’ option in function RAMA (Record / Amend Assessment) to record the self assessment.

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Assessment awaiting issue

14. If an assessment is awaiting issue on this AP you need to:

  • use function DASS (Display Assessment Details) to see what is awaiting issue
  • use function RAMA the following day to record the self assessment.

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CIS not applicable after 5 April 2002

15. This scenario is exceptional and the return must be a paper CT600 Version 1 as a CIS entry cannot be made using the CT Online Service. If the AP starts after 5 April 2002 and the return contains a claim for Construction Industry tax deductions, you need to record the self assessment without giving relief for the deduction.

Use the ‘correct a return’ option in function RAMA (Record / Amend Assessment) and enter a free format message to advise the company that they must contact their PAYE office regarding the relief.

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Oil Tax

16. An amount has been entered as a ‘ring fence CT included amount’ but the responsible office for the case is not an Oil Taxation Office.

Transfer the record to an Oil Taxation Office. The case will appear on the work list in that office.

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Recording the self assessment

17. When you have taken the necessary action to enable you to record the self assessment using function RAMA, COTAX:

  • displays the details captured from the company’s return. You can accept or correct those entries
  • asks you to confirm the assessment details.

If you accept the captured entries, COTAX records the self assessment.