SAM31044 - Compliance: enquiry work: S12AC enquiries completed (partnership SA record) (Action Guide)

When you have completed your enquiries into a partnership return follow the instructions in the Enquiry Manual and steps below.

This Action Guide supplements the Enquiry Manual by telling you what SA and Caseflow actions are required after completing your enquiries.

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

The guide is presented as follows:

Action on the date of issue of the closure notice - Steps 1 - 5
Action if an appeal is received - Step 6
Action when partnership statement becomes final - Steps 7 - 12
Revised Case I or II profits for 1996-97 of a pre 6 April 1994 partnership - Step 13
Summarising the enquiry and noting the SA record- All Cases - Steps 14 - 15

Action on the date of issue of the closure notice

1.  Prepare the closure notice, including your conclusions and details of any amendments necessary.

No amendment arises from the enquiry

2.  If the closure notice shows no amendment is needed to the partnership statement

  • Go to step 7 in this Action Guide

Amendment arises from the enquiry

3.  If the closure notice gives the Revenue’s view that different amounts (increase or decrease) should be included in the partnership return and partnership statement, make a Revenue amendment to the partnership return and partnership statement.

4.  Update Caseflow Interaction with the issue of the closure notice and import the letter into Documentum. Detailed guidance for using Caseflow is available on the Caseflow Gateway on the Customer Complaince Guidance Hub.

5.  Issue the closure notice and the amended partnership statement to the nominated partner.

Action if an appeal is received

6.  If the nominated partner appeals against the Revenue amendment:

  • use function CREATE APPEAL to record the open appeal
  • update Caseflow to raise an appeal through a risk and put the risks appealed against on hold. Detailed guidance for using Caseflow is available on the Caseflow Gateway on the Customer Complaince Guidance Hub
  • if you cannot settle the appeal by agreement with the nominated partner, submit the appeal for hearing by Tribunal

Action when partnership statement becomes final

7.  Once the partnership statement becomes final, update Caseflow to settle and close the risk. Detailed guidance for using Caseflow is available on the Caseflow Gateway on the Customer Complaince Guidance Hub.

8.  Use SA function VIEW COMPLIANCE SUMMARY on each partner's SA record:

  • to check for an open S9A enquiry
  • if there is an open S9A enquiry, obtain the name of the Case Owner by using SA function VIEW COMPLIANCE HISTORY (checking function AMEND TAXPAYER SIGNALS for any change in case ownership)

9.  Notify each partner's revised share of partnership Case I or II profits, other income and Capital Gains (and in a S12AC enquiry for 1996-97 into Case I or II profits of a pre 6 April 1994 partnership, each partner's share of the notional tax and Class 4 NIC) plus any penalties chargeable on the partner to either:

  • the S9A Enquiry Officer where there is an open S9A enquiry
  • the office with processing responsibility for the partner's SA record where there is no open S9A enquiry

If necessary use function VIEW TAXPAYER DESIGNATORY DETAILS to ascertain the office with processing responsibility for the partner.

Note: Except for a S12AC enquiry for 1996-97 into Case I or II profits of a pre 6 April 1994 partnership, identify culpable and non-culpable additions and penalty percentage applying to culpable additions in the notification.

The partner’s revised share of Case I or II profits for 1996-97 from a S12AC enquiry on a pre 6 April 1994 partnership must still be given in the notification (without identifying culpable / non-culpable additions). The details are used to amend the partners’ self assessments for 1996-97 and thereby prompt the computer to update payments on account for 1997-98 (or, alternatively, to calculate additional interest attributable to the increase in the payments on account for inclusion in a S9A contract settlement on the partner).

  • request acknowledgement of receipt of your notification from each partner's office (except where the notification advises no change) so the partner's share is unaffected
  • in Caseflow set a reminder and keep the partnership record on B/F until confirmation has been received from all partners' offices. Detailed guidance for using Caseflow is available on the Caseflow Gateway on the Customer Complaince Guidance Hub

10.  Use SA function MAINTAIN COMPLIANCE SIGNALS to check and, as necessary, add, amend or delete:

  • compliance notes
  • third party information
  • construction industry signal

Note: It is important to keep compliance details up to date as they are used in automatic and manual risk assessment. For more information see the subject ‘Compliance Signals’ (SAM32020).

11.  Use SA function ADD/AMEND ANNUAL COMPLIANCE DETAILS to enter or update the following for the post enquiry year:

  • mandatory review for Possible Enquiry signal
  • potential Selection for Enquiry Priority signal
  • review Notes

Note: It is important to set the above signals to ensure that a partnership return for a particular year is reviewed for possible enquiry. For more information see the subject ‘Compliance Signals’ (SAM32020).

The settlement date is passed overnight from the Caseflow record to the SA record. The following day, check in SA function VIEW COMPLIANCE HISTORY that this has occurred, then continue with the step.

12.  Use function MAINTAIN RESPONSIBLE OFFICE to set the Automatic Move (SAM31070) status to ‘N’ if a reason exists for inhibiting automatic transfer of your responsibility for the partnership during a bulk transfer of SA records.

Revised Case I or II profits for 1996-97 of a pre 6 April 1994 partnership

13.  If your S12AC enquiry is for 1996-97 into Case I or II profits of a pre 6 April 1994 partnership the additional liability should be collected by either:

  • Negotiating a contract settlement with the nominated partner
  • Amending the 1996-97 CODA partnership assessment

Summarising the enquiry and noting the SA record- All Cases

14.  If the enquiry involved a challenge to the original status claimed, even if the outcome is unchanged, use SA function VIEW TAXPAYER DESIGNATORY DETAILS and the Residency option to record:

  • 'Y' for UK resident
  • 'N' for non-UK resident

Record the date the UK domicile decision was made in the Date Domicile Set. 

15.  Use function MAINTAIN SA NOTES to record the compliance check has been completed (and, for legacy cases, where any paper enquiry papers are filed). For more information see the subject 'SA and permanent notes' (SAM108000).