Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

Self Assessment Manual

From
HM Revenue & Customs
Updated
, see all updates

Records: maintain taxpayer record: SA exceptions from Frameworks merging process (Action Guide)

If you want to review the cases where there is, or appears to be, more than one SA record for the same customer, follow steps 1 - 19 below

  Steps 1 - 6
   
  Steps 7 - 20

For details of how to access any of the SA functions, select ‘Index of Functions’ on the left of the screen.

Initial action to take in all cases

1. Check to see if one, or both, of the SA records is an HNWU case
   
  If so,
  * Send details of both records to HNWU and request that the records are reviewed in line with this guidance to consider making one of the records dormant
2. Check TBS for each record to see if there is a CIS interest. The UTR linked to CIS should be the record that is retained, regardless of which record contains the most up to date information
  If both records have a CIS interest
  * Refer to Newry CIS Team for advice
3. If the review identifies that it is a mixed record, for example where two individuals have been mistakenly thought to be the same person because their designatory details are the same, or similar,
  * Follow the guidance at SAM101105 
4. Check both SA records using function MAINTAIN RETURN SUMMARY to look for a student loan interest. If so,
  * Retain the SA record that shows the student loan interest
5. Check any NPS records that are held for the customer. If there is no compelling reason to retain a particular record, you should retain the SA record that is linked to NPS
6. Unusually, you may find that one of the SA records is showing as ‘closed’ (entry in the ‘last SA return required’ field) but still shows as ‘live’ on TBS. To rectify this mismatch you will need to
  * In Amend Taxpayer Signals, remove the entry from the ‘last SA return required’ field)
  * Click [OK]
  * Then add the entry back into the ‘last SA return required’ field
  * Click [OK]
  * Enter ‘Y’ in the ‘SA entry/exit’ letter (SA251)inhibited’ field
  Then wait overnight to allow the system to update the record and
  * Check that the TBS record shows as dormant
  When the record shows as dormant
  * Enter ‘N’ in the ‘SA entry/exit letter inhibited’ field on the SA record
7. It is not usually necessary to transfer return information, or payments, between duplicate records as it is acceptable that different years may be dealt with under different records. However, if it is obvious that a credit is held on one record and the relevant charge is held on the other record
  * Arrange for the credit to be moved following the guidance at DMBM210205
  Note: If you take this action make sure an SA Note is made to state the amount of credit to be transferred and the UTR it is being transferred to

Actions to close the unwanted record

8. Access the record to be made dormant  
     
  * Inhibit the ‘SA entry/exit’ letter  
9. * Use function AMEND TAXPAYER SIGNALS to enter the last year for which an SA return is required in the ‘Last Return Required For Year Ending 5 April’ field  
  Note: If a return has been issued, this must be the return year  
10. Where tax returns have been issued for the same year on both records and a late filing penalty, or penalties, have been imposed on the record you are making dormant, refer to SAM101092 for further information  
11. View MAINTAIN RETURN SUMMARY. Where the paper filing date has passed  
  * Defer the paper filing date to the date you are taking action  
  Note: Where the online filing date has also passed, you must amend both the paper and online filing dates to the date you are taking action before you create a nil charge  
12. Where tax returns have been issued for the same year on both records  
  * Use function CREATE RETURN CHARGE to enter a nil charge on the record for the particular year(s) to be closed  
  Note: Where there is an amount pre-populated in the ‘Outstanding debt included in your tax code’ field, you must amend that figure to 0.00 and when you receive a warning message showing ‘Amount of collected coded out small debt is less than £XX.XX you should ‘OK’ it. For further information about coding out small debts, see SAM141045.  
13. If the dormant record shows a partnership source  
  * Enter a cessation date on the ‘Sources’ screen  
14. If there are any payments on account for the current year on the record you are making dormant  
  * Use function MAINTAIN PAYMENTS ON ACCOUNT to reduce them to nil  
15 Issue SEES letter SA828 to the taxpayer and agent, if applicable, to advise that duplicate records have been found and the UTR that is to be used in future  
16. Use function MAINTAIN SA NOTES to make an SA Note on both records  
  * On the record you are keeping open  
  * Enter the note ‘Duplicate record at UTR-–-–-— closed from YYYY/YY. SEES letter SA828 issued’  
  * On the record you are making dormant  
  * Enter the note ‘Duplicate record at UTR-–-–-— applicable from YYYY/YY onwards’  
17. Update the live record with any relevant information.  
  * Use SA to update current agent details, sources and signals and use TBS to update name, address, capacities and communication address (nominated address on TBS).  
* You should also update the closed record on TBS in respect of name and address so the two TBS records match. This should mean that the two records merge automatically in due course.    
18. If there is an open enquiry on one of the records, advise the Enquiry Officer of your actions  
19. In the unusual circumstances of returns being received for the same year on both records  
  * Refer to a Band O to consider whether the returns are duplicates or if one is to be treated as an amendment to the other  
20. Update SA Notes on the live record with any important notes from the dormant record, such as details of Double Taxation agreements