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: trust returns: unsolicited returns: trusts

Unsolicited returns are returns received from trustees (or their agents) who have not been required, by the official issue of a return containing a Section 8 / 8A notice, to file a return.

In the case of a return for an out of date year

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

  • (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
  • (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
  • (This content has been withheld because of exemptions in the Freedom of Information Act 2000) SAM123101(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

All other cases

In all cases you should set up an SA record in a new case, or reactivate the record in a dormant case, where you receive an unsolicited return or information which purports to be a return. For information on setting up a trust record see section ‘Set Up Taxpayer’ in business area ‘Records’; for information on re-activating a dormant record see section ‘Maintain Taxpayer Record’ in business area ‘Records’.

You should then consider whether there has been a potential Failure to Notify chargeability and if so, use function ADD / AMEND ANNUAL COMPLIANCE DETAILS to set the Mandatory Review signal (category ‘FTN’) on the SA record.

If the information received purports to be a return but which is not in the proper form and which lacks a proper declaration you should

  • Write to the trustee, (send a copy to the agent where the information has come from the agent) explaining that the information given cannot be treated as constituting a return since it falls short of the requirements

Note: Where an unsolicited return is signed by someone on behalf of the taxpayer (for example, Power of Attorney), also seek confirmation of authority if there are any doubts

  • Enclose an official return for completion

And

  • Record the date of issue of the return using function RECORD DATE OF CLERICAL ISSUE. The date recorded should be the same as the date on your letter

If the unsolicited return is in the proper form you should log the return to record the date of receipt.

You must then write to the trustee (see Action Guide for suggested wording), sending a copy to the agent where the return has been sent in by an agent, to

  • Acknowledge receipt of the return

Note: Where an unsolicited return is signed by someone on behalf of the taxpayer (for example, Power of Attorney), also seek confirmation of authority if there are any doubts. In this instance, say that all we are doing is seeking to establish whether this is a valid return and are not giving notice of intention to enquire into the return

  • Advise the trustee that you will treat the return for all purposes as if it were in response to a notice to make a return by the date we received it

You should treat the return as having a filing date of 31 October or, where received after 31 October following the end of the tax year, the same as the date it was received.

Note: If you receive any objection to the intended action you have no alternative but to unlog the unsolicited return and issue a formal return containing a Section 8 / 8A notice.

You should then capture the return details using TSS.

If the return is received after the normal filing date of 31 January, notify the Review Interest Network Officer (RINO) that the relevant date for payments (balancing charge and payments on account), and the surcharge trigger date, should be deferred.

Note: Deferring the due date will prevent interest being charged from the original due date but will not prevent surcharge being imposed 28 days after the original due date. When a due date is deferred, the Time To Pay (TTP) signal should also be set to prevent the imposition of surcharge. The TTP start date should be set the day before the existing surcharge trigger date (normally 28 February) and the TTP end date set to 28 days after the deferred due date for interest purposes.

If Failure to Notify applies, the due date for payment will remain as 31 January and payments on account for the following year will also remain as 31 January.

(This content has been withheld because of exemptions in the Freedom of Information Act 2000) stencil (Word 37KB)(This content has been withheld because of exemptions in the Freedom of Information Act 2000)  

In all cases, the Section 9A enquiry window will commence from the date of receipt of the return and, for example for 2014- 2015, will close on

  • 31 October 2016, where the return was received by 31 October 2015

Or

  • The quarter day next following the anniversary of the receipt of the return where the return was received after 31 October 2015