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

Returns: return issue: withdrawing a notice to file for tax years 2010-11 onwards (Action Guide)

Function RRSA can be used to carry out the actions in this Action Guide, where appropriate, other than the coding check mentioned at step 6 which refers to step 13, SAM101092.  For further information about how to access this function and what actions will be taken automatically, see subject ‘Automation of dormant record process’ (SAM101094).

This action guide should be followed after you have followed the steps at SAM101092 ‘Making a record dormant’. This action guide contains actions to take where a return has been issued incorrectly or is no longer required to be completed, and is still shown as outstanding on the record.

The guide is presented as follows

1. Check that no SA criteria is present for the year(s) in question by referring to SAM100050 ‘Criteria for a PAYE/SA record’ and SAM100060 ‘Criteria for SA record’ before following the steps below. Where any of the stated SA criteria is satisfied the return must be completed
   
  Check that the record is not RLS. If it is, you cannot proceed until a new address has been obtained and the record has been updated
  If the record shows a determination has been raised, the return must ordinarily be completed. If not, proceed as follows
  ## Individuals
2. In view MAINTAIN RETURN SUMMARY, where taking action after the paper filing date (usually 31 October)
  * Amend 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 return charge. However, a warning message will appear when the screen showing the Nil charge is sent and will say ‘Do you need to defer the filing dates to avoid incorrect penalties being charged?’ If the filing dates have not been amended appropriately, [OK]] the warning message and [Exit] the screen and go back to the MAINTAIN RETURN SUMMARY screen to make sure you amend the filing dates correctly before proceeding.
  Note: Do not take this action on a Monday or Tuesday and where taking action over a weekend, the date should be amended to the following Monday, or Tuesday if it is a Bank Holiday weekend
  * Use function CREATE RETURN CHARGE to enter a nil charge (or a charge equal to the payments on account or determination) for the particular year(s)
  Note: For the tax years 2012-2013 onwards, when using the function to create a nil charge, if a coded debt is present, the coded out amount will default to £0.00 and a warning message will appear as follows ‘Coded out debt figure removed and Nil charge entered’. Any figure in the ‘coded out debt’ box must be set to £0.00. For further information about coding out small debts, see SAM141045
  Note: Where more than one years’ tax return is outstanding, you may need to apply these actions to each tax year, separately and in chronological order, to bring the record up to date
  Note: Where these actions are taking place after the returns selection in February but before 5 April, you will be able to set the year to the year of the return selection
  For example
  Return selection run in Feb 2013 to issue 2012-13 returns, Last Return Required (LRR) signal must be set to ‘13’
  This means the record will show that the 2011-12 return is outstanding so you must create a nil return charge for ‘13’
  ## Partnerships
3. View MAINTAIN RETURN SUMMARY. Where the paper filing date has passed
  * Amend the paper filing date to the date you are taking action and where the 31 January (online filing date) has passed, amend both the paper and online filing dates to the date you are taking action
* To do this  
  * Select the ‘Return Summary’ screen for the return year, for example 2012-13
  * Select the [Update] button
  * Enter the relevant date in the Paper Deferral Date box and the Return Deferral Date (online) return where appropriate
  * Select the [OK] button
  Note: Where taking action over a weekend, the date should be amended to the following Monday, or Tuesday if it is a Bank Holiday weekend
  * Cancel any penalties that have been charged for that year using function VIEW/CANCEL PENALTIES
  Notes:
  a. There may be individual and partnership penalties to consider
  b. In partnership cases, action to cancel the penalties must be done from the partnership record, not the partners record
  * Set the ‘Last Return Required’ signal for the year of the return
  * Capture a ‘Nil’ return
  Note: In Partnership cases you will be unable to capture a Nil return for CY until after the April release when the capture screens will become available
  For example
  Between the returns selection date in mid February and 5 April 2012, the ‘Last Return Required’ signal can be set as ‘12’ ,but the 2011-12 ‘Nil’ return cannot be captured until after 6 April 2012
4. Check if there are penalties which have been charged incorrectly and if so, cancel them as follows
  * For tax years 2010-11 and later, use function VIEW/CANCEL PENALTIES
  Note: There may be individual and partnership penalties to consider and in partnership cases, action to cancel the penalties must be done from the partnership record, not the partners record
5. The SA Exit letter will have been inhibited following the guidance at SAM101092 so
  * For tax years 2010-11 and 2011-12, issue SEES Letter SA789 (Cancellation of an SA return)
  * For tax years 2012-13 onwards, SEES Letter SA832 (Withdrawal of a Notice to file) must be issued
  Note: Where a 2011-12, or earlier, return and a 2012-13, or later, return is outstanding you will need issue both letters. These letters can be found in Excel under SEES Forms and letters
  For 2012-13 onwards, the SA832 letter will state that the original Payment due date(s) will still apply and you must include that date in the letter. To establish the date(s)
  • Select the Maintain Return Summary screen and identify the original online filing date (not the deferred filing dates)    
        Note: You will need to consider the return due dates and whether the return was issued as Failure to Notify (FTN). If it was not issued as a FTN case, the payment due date will be the same as the online filing date. However if FTN did apply, the payment due date will be 31 January following the end of the year of the return
        For example
        Example 1
A return for 2012-13 was issued on 6 April 2013 (a standard issue return). The Paper filing due date was 31 October 2013 and the Online filing due date 31 January 2014. The due date for payment was 31 January 2014. The SEES letter SA832 would show 31 January 2014 as the payment due date    
    Example 2
A return for 2012-13 was issued as a ‘late issue’ on 1 November 2013 and was not ‘Failure to Notify’ so the paper and online filing date was 7 February 2014 (3 months and 7 days later). The payment due date would also be 7 February 2014. The SEES letter SA832 should show 7 February 2014 as the payment due date    
    Example 3
As before, a return for 2012-13 was issued as ‘late issue’ on 1 November 2013 but was a ‘Failure to Notify’ case. The paper and online filing dates are 7 February 2014 giving 3 months and 7 days to file but, as it is a FTN case, the due date for payment is 31 January 2014. The SEES letter SA832 would show 31 January 2014 as the payment due date    
    ## Individuals with PAYE income
  6. Where the customer should not have been in Self Assessment for the year, and reconciliation in NPS is required
    * Enter the UTR on the main Self Assessment screen
    * Select [Return], then [Maintain Return Summary]
    * Select the year required from the drop down menu
    * Amend the ‘No SA Criteria’ indicator to ‘Y’ to trigger automatic reconciliation for the year on NPS
    Note: This function can only be used for tax years 2010-11 onwards. It will only be available for CY to CY-4, so, for example, in March 2015 you will be able to trigger NPS reconciliation for 2010-2011 to 2014-15
    Note: The indicator cannot be set to ‘Y’ if a return has already been logged and/or captured for that year, or a determination exists for the year. You should also note that use of Create Return Charge NIL will not prevent the signal from being set. However, if the indicator is set by mistake, it will be possible to unset it but only where a return has been issued and/or logged and/or captured for that year.
    Note: Where there is a PAYE record, make sure that step 13 SAM101092, (the action to to review the IABD screen) has been followed
  7. Make an SA Note as follows giving full details of why the return is no longer required
‘SA832 [Withdrawal Notice] [and/or] SA789 (Cancellation of an SA return) for [XX/XX] ITR (or ITRs) [Enter year] issued on [XX/XX/XX] [state reason for withdrawal of notice to file]. Payment due date(s) XX/XX/XXXX. Pprs stored in XXXXX’.