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HMRC internal manual

Self Assessment Manual

From
HM Revenue & Customs
Updated
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Records: maintain taxpayer record: dormant records: re-activating a dormant record (Action Guide)

If you want to re-activate a dormant SA record, consider steps 1 - 9 below. Then if the SA year (or years) is to be reactivated because the customer has either sent a return in for the year or we now require a return for the year where we have previously agreed a return was not required for the year, follow the guidance at SAM120120 then SAM120121 for tax years 2010-11 and 2011-12, and SAM120122 (Action Guide) for tax years 2012-13 onwards.

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

All cases

1. Review and update the taxpayer’s personal and, if appropriate, business details on the SA record, including signals that were set before the record was made dormant. The subjects ‘Maintain company record’ (SAM101200), ‘Maintain individual record’ (SAM101210), ‘Maintain taxpayer record’ (SAM101001), ‘Maintain partnership record’ (SAM101230) and ‘Maintain trust record’ (SAM101260) include detailed advice
   
  Note: You should not reactivate
  • A dormant non-resident company landlord record if the income as a landlord has ceased but the taxpayer needs to be brought into SA for other reasons. Instead, you must use function SET UP INDIVIDUAL TAXPAYER to set up a new record and use function MAINTAIN SA NOTES to record the existence of the UTR of the dormant record
  • A pre-bankruptcy recrd. Instead you must use function SET UP INDIVIDUAL TAXPAYER to set up a new record and use function MAINTAIN SA NOTES to record the existence of the UTR of the bankrupt record    
      2. Delete the entry in the Last SA Return Required For Year Ending 5 April field in function AMEND TAXPAYER SIGNALS for the relevant year
        Note: Where you are re-activating a dormant record and the first SA year is not CY, you will need to wait 3 days for the Start Year to flow to the NPS record. You should then follow the Action Guide (This content has been withheld because of exemptions in the Freedom of Information Act 2000) to set the SA Start Year back to the appropriate year
      3. Where requests are made, either by the customer or authorised agent, to remain in SA even though SA criteria is not being met, you must advise them that even though they, or their customer has been refine out of SA, they can continue to use their SA online Account to send returns voluntarily. Having been refined out of SA does not prevent them from sending in further SA returns, it just ensures that they are not obliged to send one in and be part of the penalty process
      4. Where the record has been closed in error, that is, we held information that showed that SA criteria was satisfied but still closed the record and issued the ‘exit’ letter, where the customer is now required to complete SA return
        * Inhibit the ‘Welcome‘ letter (SA250) as it is not appropriate
        * Issue SEES letter SA627
        If the record was not closed in error and the customers circumstances have changed since the record was closed
        * Issue the Welcome letter (SA250)
        In both cases
        * Make a note of your actions on the SA record using function MAINTAIN SA NOTES
      5. Where the record is re-activated after a new address has been traced for a taxpayer who was RLS
        * Where the return is outstanding and function CREATE RETURN CHARGE has been used in accordance with SAM120116(Action Guide withdraw notice to file) because payments on account or a determination exist, unlog the charge using function MAINTAIN RETURN SUMMARY. This will bring the original payments on account or determination, back into charge. Note: This may not be possible if the year is no longer available in SA
        * Where you need to reissue a return, refer to ‘Issuing Returns other than at bulk issue’ (SAM120040) for guidance
        * Make a note of your actions on the SA record using function MAINTAIN SA NOTES
      6. Where the record is re-activated because the taxpayer has objected to non-PAYE income being included in the PAYE code but has been automatically refined out of SA following capture of the return, you must
        * If not already set, set the Automatic Closure Inhibited signal in function AMEND TAXPAYER SIGNALS
        * Inhibit the issue of a ‘Welcome‘ letter (SA250) and issue SEES letter SA627
        * Make a note of your actions on the SA record using function MAINTAIN SA NOTES
        * Amend the code to remove the non-PAYE income
      7. Check the NPS record for the year that is now considered SA
        * If a repayment or underpayment is shown on NPS for the year
        * Follow the guidance at PAYE93005
      8. Review the taxpayer’s return profile and amend as necessary, using function MAINTAIN RETURN PROFILE
      9. Use function VIEW STATEMENT to check whether there are any remissions held on the record
        * If the advisory message ‘Please note there is a remission posted on this account’ is displayed
        * Send a WAM to ‘London North West Recovery’ Debt Management (DM) office to review the remission
        Note: Do not contact the DM office if only type 5b or 10 remissions are present as these will not be cancelled
        * Make a note of your actions on the SA record using function MAINTAIN SA NOTES
        * If the advisory message, as above, is not displayed there are no remissions
        * You need take no further action