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HMRC internal manual

Self Assessment Manual

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HM Revenue & Customs
Updated
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Returns: return issue: reactivating an SA year (for tax years 2012-13 onwards) (Action Guide)

Where we have previously issued a return for 2012-13 onwards, and later agreed that the return is not required for the year, you should follow the Action Guide at SAM101093 to reactivate the record, then consider steps 1-12 below.

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

1. Using function MAINTAIN RETURN SUMMARY
   
  * Unlog the ‘Nil’ Return charge for the appropriate year(s)
2. Check SA Notes to identify if a SA832 (Withdrawal notice) was issued previously
  If so,
  * Note the date of the withdrawal notice and determine if the customer responded within 30 days or not. Make a note and then proceed
3. Check Maintain Return Summary to see if the return was a standard or late issue return and note the filing date(s)
4. Prepare SEES letter SA833 (Reissuing notice following withdrawal) from SEES Forms and Letters (choosing the appropriate options for that case) to send to the customer for cases where we have not received a return from the customer but they satisfy SA criteria and a return is now required, or, where a return is now required to collect an NPS underpayment
  * Note the issue date shown on the letter
  Note: The letter will tell the customer that they have 3 months from the date of the letter to file the return
5. Use function RECORD DATE OF CLERICAL ISSUE to note the record that the return is now required. The Return Issue Date box will be automatically populated
  Consider the examples below to determine whether or not you need to set the FTN signal in order to ensure the correct Relevant Due Date for payment is calculated by the system
  Note: This may mean that, in these circumstances, you have to set it when it is not appropriate or not set it when it is

For further information, see the examples below

Example 1

2012-13 Notice to file issued 6 April 2013
   
Paper filing date 31 October 2013
Online filing date and Payment due date 31 January 2014
Withdrawal Notice (SA822) sent following contact from customer 10 June 2013
Customer contacts HMRC to advise that he does now need to complete a return 1 July 2013
New Notice to file (SA833) issued 13 July 2013

In this case, the standard Payment Due Date applies and the customer contacted HMRC to advise that they do need to complete a return within the 30 day period stated in the SA822 letter. Although ‘Failure to notify’ does not apply as the customer did advise us that they needed to complete a return within the 30 day period, it must be recorded as ‘failure to notify’ within the function RECORD DATE OF CLERICAL ISSUE, to record the correct payment due date which is 31 January 2014.

Example 2

2012-13 return issued 25 November 2013 (not failure to notify)
   
Paper and Online filing date and Payment Due date 4 March 2014
Withdrawal Notice (SA822) sent following contact from customer 25 March 2014
Customer contacts HMRC to advise that he does need to complete a return 10 June 2014
New Notice to file (SA833) issued 20 June 2014

In this example, a non-standard filing and payment date of 4 March 2014 applies and the customer contacted HMRC to tell us that they do need to complete a return after the 30 day period. Although ‘Failure to notify’ does apply, as the customer made contact after the 30 day period, it should not be recorded as ‘Failure to notify’ with the function RECORD DATE OF CLERICAL issue as the payment due date will be set as 31 January 2014.

Note: As we are not recording this as a ‘Failure to notify’ case, the payment due date will be set as 27 September 2014 (3 months and 7 days after the new notice to file (SA833) is issued). (This content has been withheld because of exemptions in the Freedom of Information Act 2000)  

6. Select MAINTAIN RETURN SUMMARY for the tax year and where the Return deferral date and Paper Return deferral date boxes have been completed (for example, when actions shown at SAM120116) were taken), delete the dates and replace with the new filing date(s).
   
7. * Issue the SA833 letter and if the customer has an agent, send a copy to the agent
8. Where an NPS record is held, and the ‘No SA Criteria’ indicator had been changed from ‘N’ to ‘Y’ previously, you must change it back to ‘N’ for each year that applies
  To do this
  * Select the [Return] button from the main Self Assessment screen, then the [Maintain Return Summary] button
  * Select the year required from the drop down menu
  * Amend the ‘No SA Criteria’ indicator to ‘N’ to clear the year as ‘Reconciled - SA’ on NPS
  Note: This can only be done after the MAINTAIN RETURN SUMMARY screen has been updated to record the date of clerical issue, that is, when the SA833 letter is issued
9. Wait until the NPS record shows the indicator set at step 7 then refer to the guidance at PAYE93005 for the appropriate action to take
  Note: It may take a few days for the amended ‘Reconciled - SA’ indicator to appear on the NPS record.
10. Late filing penalties
  Check if previous late filing penalties have been cancelled for the year and if so
  * Create a BF for after 3 months and 7 days following issue of the SA833 letter to check if the return has been filed on, or before, the filing date
  If, at the BF date, the return was late or is still outstanding, penalties will need to be raised manually. For further information, refer to subject ‘Manually raising a penalty, Action Guide (SAM61281)
  Note: If any other penalties need to be raised further BF’s are necessary to raise those penalties manually
11. Where the year that you want to re-activate immediately follows the last year for which there was SA liability, review the payments on account
  * Use function MAINTAIN PAYMENTS ON ACCOUNT to view the payments on account
  If they have been reduced to nil,
  * Use function CREATE RETURN CHARGE, for that previous year, to restore the payments on account
12. * Make an SA Note of the action taken
  Note: In cases where a notice to file a return for tax years 2012-13 onwards, has been withdrawn, careful attention must be given to make sure the SA Note accurately shows if the return year is FTN or not FTN. (This content has been withheld because of exemptions in the Freedom of Information Act 2000)