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HMRC internal manual

Self Assessment Manual

From
HM Revenue & Customs
Updated
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Returns: view and amend return: return amendments: computer cannot calculate liability (Action Guide)

Where the computer displays the message in function AMEND RETURN, ‘No calculation has been performed. A manual calculation is required’, follow steps 1 - 8 below.

Note: For the years up to and including 1998-99 the computer can handle four basic calculations. From 1999-00 onwards the computer will produce one calculation to cover all the situations listed below:

  • Standard Income Tax and Class 4 National Insurance Contributions
  • Capital Gains Tax, Income Tax and Class 4 National Insurance Contributions
  • Income Tax and Class 4 National Insurance Contributions for taxpayer’s with life assurance gains and / or lump sum compensation payments chargeable under Section 148 ICTA 1988
  • Income Tax and Class 4 National Insurance Contributions for non-resident taxpayers

If any combination of these is required a message will be displayed during capture or amendment which says ‘No calculation has been performed. A manual computation is required’.

All the return details must still be captured in Local Data Capture (LDC) using function CAPTURE RETURN or AMEND RETURN but the liability should be calculated manually. Function CREATE RETURN CHARGE is used to record the liability on the taxpayer’s record. The return details captured in LDC are sent to the main computer and are available for viewing.

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

1. Ensure the amended return information is entered using function AMEND RETURN
   
2. Obtain a copy of all the repairs (abbreviated version available only), and Customer Service messages made during amendment. Use the Copy option from the Edit menu heading on the ALL REPAIRS FOR THIS RETURN screen and / or the CUSTOMER SERVICE MESSAGES screen in function AMEND RETURN. Copy the messages into a separate document to help you complete the manual Tax Calculation
3. Calculate the taxpayer’s revised liability. There is a calculation guide you may want to use for taxpayers with Capital gains and Life assurance gains and/or Lump sum compensation payments chargeable under Section 148 ICTA 1988. There are no calculation guides for other (rare) combinations
4. Use function CREATE RETURN CHARGE to enter the liability on the taxpayer’s SA record
5. Prepare and issue a manual Tax Calculation together with a Revision Notice and Customer Service messages if applicable
6. View function VIEW STATEMENT where the taxpayer is now claiming a repayment to establish
  * Whether the taxpayer’s SA record shows a credit balance. If not write to the taxpayer and explain why a repayment is not due
  * Whether any charges are due within the next 45 days. If so, and these reduce / eliminate the repayment claimed, contact the taxpayer and explain why a (full) repayment is not appropriate at this time
  * When payment was processed (posting date). If this falls within the last 14 days the payment is an uncleared payment. B/F the papers until the 14 day period has elapsed and review the claim again
Note: Where the most recent payment is a transfer from OAS then repayment can be dealt with immediately  
7. Use function ISSUE REPAYMENT FROM OVERPAID BALANCE to make the repayment to the taxpayer, agent or nominee
8. File the papers away