SAM123330 - Returns: trust returns: processing the pension scheme tax return

On the day of receipt of the Tax Return for Trustees of Registered Pension Schemes the return should be date stamped and recorded (logged) as received on the SA record using function LOG RETURN. The actions required on receipt of the return are the same as for the Trust and Estate return. Further information on the actions required on receipt of the return is available in subjects

  • ‘Acknowledging Returns: Individuals’ (SAM121010)
  • ‘Cessation or Death of a Trustee’ (SAM123030)
  • ‘Logging Trust Returns’ (SAM123040)
  • ‘Payment Received with Trust Return’ (SAM123060)
  • ‘Return Issued to Trust in Error’ (SAM123080)
  • ‘Return Receipt (Trust): Responsible Office Elsewhere’ (SAM123090)
  • ‘Reviewing Enclosures: Trust Return’ (SAM123110)
  • ‘Trustee Detail Changes’ (SAM123130)

Local Data Capture (LDC) is used to log receipt of the return and TSS support is available to process the return. The SA Pension or SA Trust programmes on TSS are allocated by the Local Administrator and accessed through Single Point Security (SPS).

After the initial action has been taken, the return should be reviewed for any missing details which cause the return to be considered as unsatisfactory. If the return is satisfactory, the liability for the return year should be calculated. Unsatisfactory returns received during the period 10 to 31 January (or in the corresponding period up to any other filing date) should be left as logged for 21 days whilst the trustee is contacted regarding omissions.

Note: A Tax Return for Trustees of Registered Pension Schemes should be regarded as unsatisfactory if there are no supporting accounts or statements of assets and liabilities with the return.

In Revenue calculation cases the tax calculation will be blank. A self calculating taxpayer will complete the Tax Calculation Guide SA976.

You must calculate the liability using TSS or manually using the working sheet in the return. The liability should be entered on the SA record using function CREATE RETURN CHARGE. Information on the source of the entry or entries in function CREATE RETURN CHARGE from the pension scheme return is available at subject ‘Processing The Pension Scheme Tax Return: Calculation’ (SAM123332).

If using TSS and Revenue calculation has been requested or repairs have been made to the return where the taxpayer has self calculated, a Tax Calculation is produced automatically from TSS and printed out on the local office printer for issue. The Tax Calculation includes a Revision Notice where obvious errors and mistakes have been repaired.

In all cases where TSS is used an ACTION REQUIRED FOLLOWING DATA CAPTURE printout is produced on the local office printer. This printout details the clerical action which needs to be taken in respect of that return. Full details are available at subject ‘TSS printout for trust and pension scheme returns’ (SAM123315).

The computer uses certain compliance signals for check later purposes. For a pension scheme, because none of the information is captured on the SA computer system from the return, the computer can only set the Mandatory Review For Possible Enquiry signal automatically where

  • There has been a Failure to Notify

Or

  • It is a Very Late Return

The ACTION REQUIRED FOLLOWING DATA CAPTURE printout produced from TSS identifies the circumstances when you need to set the Mandatory Review For Possible Enquiry signal manually. These are when

  • An entry of Capital Gains has been made and either

    • A valuation or estimate was used

    And / Or

    • Shows transactions in unquoted shares

    And / Or

    • Shows transactions in Land & Property

    And / Or

    • Shows transactions other than unquoted shares, Land & Property or quoted shares

Similarly if the Potential Selection for Enquiry Priority signal needs to be set it must be set manually. The ACTION REQUIRED FOLLOWING DATA CAPTURE printout produced from TSS identifies the circumstances where the signal must be set to value 1 as follows

  • There is trading income (box 11.1 for 1999-00 onwards)
  • There are underwriting commissions in excess of £25000 (box 10.1 for 1999-00 onwards)
  • There are rents exceeding £10000 paid to foreign landlords (box 13.3 for 1999-00 onwards)

From 31 December following the end of the return year, all Revenue Calculation cases received before 31 October but not processed until after 31 December must be reviewed by the Review Interest Network Officer following the entry of the charge in function CREATE RETURN CHARGE.

The Review Interest Network Officer reviews each case and uses function AMEND RELEVANT DATES where necessary to amend the balancing payment or payment(s) on account due dates.

For more detailed information see subject ‘Capture of Trust Return After 31 Dec: RC Cases Only’ (SAM123230) and section ‘Interest’ in business area ‘Interest, Penalties and Surcharges’.