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HMRC internal manual

Self Assessment Manual

From
HM Revenue & Customs
Updated
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Returns: returns work lists: w053 daily returns review: INT / ADC / PAYE CIC

From 6 April 2010, no new cases populated this list but existing entries for returns processed up to 5 April 2010 will remain on the list.

Following acceptance of returns information online including amendments to returns from October 2008 and of returns processed via Automated Data Capture (ADC) to April 2010, the case will be entered as INT / ADC / PAYE CIC on the ‘Daily Returns Review: Electronic Return Cases’ work list where a coding (integrity) check is required.

Most repayments claimed on the return are made automatically, but the automatic repayment is inhibited where the taxpayer has

  • Entered ‘X’ in box 2 of the Starting your Tax return section of the return page TR 1 to indicate a change of address

And

  • Claimed a repayment

And

  • Requested the cheque to be sent to their home address

This to avoid the cheque being incorrectly issued to the old address.

The ‘Daily Returns Review: Electronic Return Cases’ work list is allocated to the Clerical Processing Officer in the office with processing responsibility.

Where the employment, pension or social security source is a PAYE secondary source, the coding (integrity) check must be carried out in the office with processing responsibility for the SA case.

Cases appearing on the ‘Daily Returns Review: Electronic Return Cases’ work list with the reason INT / ADC / PAYE CIC can be filtered as follows

  • Field = INT / ADC / PAYE CIC
  • Filter Condition = Equal To
  • Value = 1, 2 or 3

The corresponding values are

  • 1 STRCIC = Short Tax Return cases requiring a coding (integrity) check
  • 2 INDIVCIC = Main Tax Return cases requiring a coding (integrity) check and online amendments to Main Tax Returns that include any of the following:

    • Employment pages
    • Minister of Religion pages
    • Entry in box 11.9
    • Entry in box 11.12.
  • 3 CIC Compare =

    • Details entered in boxes 7 and 8 of the Tax Calculation Summary (TCS) page TCS 1 do not match values held on PAYE and a Coding Integrity Check is required

    Or

    • Details entered in box 7 of the Income section of the return page TR 3 (box 4.1 STR) do not match values held on PAYE and a Coding Integrity Check is required

While carrying out the coding (integrity) check you should also

  • Review the indicators on the PAYE record. The annual maintenance process which takes place in November, uses information on the PAYE record to decide whether a taxpayer should be brought into SA. The process will list for clerical review non-SA PAYE taxpayers who apparently should be brought into SA (either by re-activating a dormant SA record, or by setting up an SA record). For more information about the annual maintenance process see section ‘Maintain Taxpayer Record’ in business area ‘Records’. The instructions in the PAYE Manual should be used to decide if an indicator is required on the PAYE record.
  • Check the details entered in TCS 1 boxes 7 and 8 in cases where the reason is ‘CIC Compare’. Note: When an electronic return is received a compare will be carried out automatically between the return figure and the information held on PAYE. Where there is a discrepancy, the case will appear on the work list as ‘CIC Compare’. Other cases will not require a review of details at TCS 1 boxes 7 and 8
  • Check the amount of tax already refunded for the year of the return in box 1 of the Finishing your Tax Return section of the return page TR 5 (box 12.11 STR)
  • Check the details entered in TR 3 box 7 (box 4.1 STR) in cases where the reason is ‘CIC Compare’. Note: When an electronic return is received a compare will be carried out automatically between the return figure and the information held on PAYE. Where there is a discrepancy, the case will appear on the work list as ‘CIC Compare’. Other cases will not require a review of details at TR 3 box 7 (box 4.1 STR)
  • Check whether Age Allowance or Married Couple’s Allowance have not been claimed but it is clear from other information that the relevant allowance is due. Other information may include other return entries, coding record, PAYE record and so on
  • Check in STR cases that either box 11.1 (claim for full Married Couple’s Allowance) or box 11.2 (allocation of minimum amount) has been completed. The taxpayer should make an entry in only one of these boxes
  • Check whether Flat Rate Expenses have not been claimed but they are included in the coding for the return year
  • Check whether box 14 or 15 of the Tax Calculation Summary page TCS2 have not been completed but it is clear from other return entries that either, or both, of the relevant boxes should be completed. Other return entries will be at

    • Boxes 3 and 4 of the Other information section of the Additional information page Ai 3
    • Boxes 71 and 78 of the Self-employment (full) page SEF 4
    • Box 33 of the Self-employment (short) page SES 2
    • Box 59 of the Lloyds underwriters page LU 4
    • Boxes 21 and 42 of the Partnership (full) pages PF 2 and PF 3
    • Box 21 of the Partnership (short) page PS 2
    • Box 17 of the UK property page UKP 1

    Or

    • Boxes 11 and 13 of the Capital Gains Summary page CG 1
  • Check whether the taxpayer has made an entry at box 3 of the Finishing your Tax Return section on page TR 5 (box 12.13 STR), but the case has been automatically refined out of SA following capture of the return. Such cases, where non-PAYE income is not to be included in the PAYE code, should remain in SA

There is no need to update the Income, Allowances, Benefits and Deductions screen on NPS as the SA auto-coding process will do this.

Notes:

1. Not all information supplied on the Ministers of Religion pages is captured on the normal Local Data Capture (LDC) screens. In order to correctly carry out the Coding (Integrity) Check, and update the code using all relevant information supplied by the taxpayer on the return, you should view the full return, not just those boxes captured in LDC
   
2. To view a full Internet return you should use function VIEW RETURN, select ‘Version 1’ and select ‘Full Internet Return’ from the file option on the menu bar
3. Where, on reviewing a SA200 case, there is a claim for allowable expenses and you are unable to determine a breakdown of the figure in box 2.5 on the return, code as job expenses and remove the other descriptors from the coding. Where, on the basis of previous years, it can be assumed that flat rate expenses is part of the expenses claimed, then the amount of flat rate expenses can usually be determined. This amount should then be coded as flat rate expenses with the balance only coded as job expenses
4. An automated facility allows tax codes to be updated immediately when form P11D information is processed. This ensures that taxpayers are paying the correct amount of tax and prevents possible underpayments accruing. Note: In some cases benefit deductions may be included in a tax code before a written S336 expenses claim is processed, but the updated code will apply from 6 April once the claim is processed

The Coding (Integrity) Check should be passed in all cases where the taxpayer is not in receipt of benefits(This content has been withheld because of exemptions in the Freedom of Information Act 2000) .

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In these cases you should

  • Set the coding check signal to ‘Pass’ on the SA record
  • Delete the work item manually from the work list, but only when all aspects that caused the item to be created have been cleared 

If the taxpayer is in receipt of benefits (This content has been withheld because of exemptions in the Freedom of Information Act 2000) , you should check

If ECS details are held

* Circle the relevant box in pencil for telephone contact
* Make one telephone call to the taxpayer or their agent to clarify the entry
* Take the relevant actions in accordance with the Minor Queries procedure

If ECS details are not held

* Pass the check
* Update the code using the information the taxpayer has supplied on their return for the same year, except in cases where the taxpayer has benefits coded and there are no entries on the return. In these cases, where the taxpayer is continuing in the same employment and you have not received notification that the benefits have ceased, the benefits in the code should be left undisturbed but other coding adjustments should still be made in accordance with the latest information held
* Use Function ADD/AMEND ANNUAL COMPLIANCE DETAILS to set the (This content has been withheld because of exemptions in the Freedom of Information Act 2000)  signal where benefits are understated or the (This content has been withheld because of exemptions in the Freedom of Information Act 2000)  signal where benefits are overstated. Enter a brief explanation of the reason in the review notes
* Delete the work item manually from the work list, but only when all aspects that caused the item to be created have been cleared 

If the taxpayer is in receipt of benefits (This content has been withheld because of exemptions in the Freedom of Information Act 2000) , you should

* Set the coding check signal to ‘Pass’ on the SA record
* (This content has been withheld because of exemptions in the Freedom of Information Act 2000) 
* Delete the work item manually from the work list, but only when all aspects that caused the item to be created have been cleared

If ECS details are held  


* (This content has been withheld because of exemptions in the Freedom of Information Act 2000) 
* Delete the work item manually from the work list, but only when all aspects that caused the item to be created have been cleared 

If, exceptionally, you unlog the return, the work item is deleted automatically.

Note: There is no need to update the Income, Allowances, Benefits and Deductions screen on NPS as the SA auto-coding process will do this.

When using function AMEND RETURN to record the result of the coding (integrity) check, the change to the record is recorded as a correction. As there are no changes to the total tax and NIC figure, it will be necessary to note the figure of total tax and NIC as accepted.