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HMRC internal manual

Self Assessment Manual

HM Revenue & Customs
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Records: set up taxpayer record: set up trade

Trading sources including trading profits and profit from a profession or vocation have to be set up as sources on the SA record for compliance purposes. A partnership may have more than one trade, but the SA record can hold only one live source at a time. You should enter details of the main source. Advice on multiple sources is available in subject ‘Set Up Partnership Record’ (SAM100240). The trade source should be declared on form SA400 or CWF1 or 41G(Trust).

There is no limit to the number of sources that can be entered on an SA record for an individual, including a partner, or a trust.

Function SET UP TRADE is used to enter the source on the SA record.

See the subject ‘Set Up Partner’ (SAM100230) for advice on partner sources.

See the subject ‘Trust Record And Partner Source’ (SAM100280) for advice where a trust has a partner source.

PAYE income and other sources are not set up on the SA record.

You will need to update the taxpayer Return Profile, to ensure that the correct supplementary pages are issued with the next tax return.

Main source

Unless the SA record is linked to PAYE, where you set up more than one trade / partner source and do not set up the main source first, you will need to nominate the main source. Function MAINTAIN SOURCES is used for this purpose.

This action is necessary because where the SA record is not linked to a PAYE record; the system uses the main source to determine where the SA record should be located.

The main source is also used in the National Tracing System, and may be used for addressing correspondence.

Construction industry source

You have to enter on the SA record the nature of the taxpayer’s involvement in the construction industry. In function MAINTAIN COMPLIANCE SIGNALS the options available to you are presented in a drop down menu. You should select the appropriate status, or check that any current entry is still appropriate.