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HMRC internal manual

Self Assessment Manual

Compliance: enquiry work: concluding an enquiry: using ITSA discovery records (Action Guide)

This Action Guide tells you how to update the SA record when you are concluding an enquiry, where an ITSA Discovery record has been used on the CQI Workbench (identified by ‘Other’ in the Direct Entry field in CQI Workbench function ENQUIRY DETAILS). It supplements the other Action Guides in this section of the SA Manual, by highlighting the additional steps that need to be carried out and different functions that may need to be used where this type of record has been set up. Follow steps 1 - 8 below. The guide is presented as follows

  Step 1
  Steps 2 - 3
  Steps 4 - 8

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

Making Revenue amendments

1. Use SA function AMEND RETURN or CREATE RETURN CHARGE to record any amendment to the return as a result of the enquiry. In function AMEND RETURN use the Change Type ‘Correction’
  Note: This is because where an ITSA Discovery record has been used, SA functions AMEND RETURN FOR ENQUIRY and CREATE RETURN CHARGE FOR ENQUIRY are not available

Handling appeals and postponements

| 2. | If the taxpayer appeals against the Revenue amendment | || |   | * Use function CREATE APPEAL to record the open appeal
And, if the taxpayer has made an acceptable postponement application | |   | * Use function MAINTAIN STANDOVERS | |   | * To suspend collection of additional liability on the amendment | |   | Note: In these cases you can only use an informal standover, though a formal standover should be used | |   | And | |   | * To informally hold over collection of payments on account for the next year to the extent they are based on the amendment | |   | Example | |   | Additional income tax and Class 4 NIC of £8000 charged in 2006-07 Revenue amendment. Payments on account for 2007-08 increased automatically by £4000 each. Appeal and postponement request received. Agreement to postpone £4000 so £2000 also informally held over on both payments on account for 2007-08 | |   | And, if the appeal cannot be determined by agreement | |   | * Submit the appeal for hearing by Tribunal | | 3. | When the appeal (and any appeal against a jeopardy amendment) is determined, check function VIEW STATEMENT before and after making the appropriate amendment to the return. (If no adjustment is required check the amount of the standover being released.) If the amount, previously suspended and now being released for collection is £1000 or more, it is possible that surcharge will be charged incorrectly. Contact the Compliance Business Helpdesk for advice on how to handle the case |

Settling the enquiry

4. In CQI function SETTLEMENT DETAILS where the Quality Score field is mandatory, enter an overall Quality Score for the enquiry
  Note: CQI Workbench function QMS is not available where an ITSA Discovery record has been used
5. Use SA function AMEND TAXPAYER SIGNALS to change the entry in the No Repayment field to ‘N’ unless a reason exists for inhibiting automatic repayment
6. Use SA function MAINTAIN RESPONSIBLE OFFICE to change the entry in the Automatic Move field to ‘Y’ unless a reason exists for inhibiting automatic moves
7. If the enquiry involved a challenge to the original status claimed, even if the challenge was not the main part of the enquiry and if that outcome is unchanged from that returned by the taxpayer use Function VIEW TAXPAYER DESIGNATORY DETAILS and the [Residency] button to enter ‘Y’ in the Residence box to indicate UK resident or ‘N’ to indicate non UK resident. The ‘Date Domicile Set’ field should record when the UK Domicile decision was made
8. Use function MAINTAIN SA NOTES to record where the enquiry papers are filed