SAM123320 - Returns: trust returns: unlogging returns where there is a charge on the record

The unlogging of a Trust and Estate return or Tax Return for Trustees of Registered Pension Schemes, where function CREATE RETURN CHARGE has been used to enter the return charge on the SA record, should be an exceptional occurrence and usually because the return has been logged and the charge entered against the wrong trust record.

Where a charge has been entered on the SA record a return should not be unlogged without the agreement of the Clerical Processing Manager. This is because all amendments to the SA record and actions taken based on the wrong return must be unravelled.

Note: If it is necessary to unlog returns for more than one year, you should always unlog in reverse order. Unlogging the later year return first will prevent problems with stranded payments on account for earlier year returns which no longer exist.

When a return is unlogged, the SA system automatically

• Reduces any balancing charge for the return year to nil or re-instates the balancing charge to the amount previously shown on any Revenue determination for that year
• Reduces any surcharge for the return year to nil, overnight
• Restores any payments on account for the year of the return that were present before the charge was entered on the record, if they were changed following entry of the charge
• Restores in full any fixed penalty for non-filing of the return, which was capped following capture of the return
• Sets the No Repayment and Inhibit Auto Reallocation signals on the SA record

• If no return is logged or there is no Revenue determination for the year following the return year

  • Reduces payments on account to nil for that year

• If a return has been logged and a charge entered on the record for the year following the year for which the return is unlogged or, there is a Revenue determination for that next year, and a determination has not been re-instated for the year for which the return is unlogged

  • Reduces payments on account to nil for the year following the year for which the return is unlogged
  • A new balancing charge is created for that next year equal to the liability on that year’s return or Revenue determination

• If a return has been logged and a charge entered on the record for the year following the year for which the return is unlogged or there is a Revenue determination for that next year, and a determination has been re-instated for the year for which the return is unlogged

  • Payments on account and balancing charge are recalculated for the year following the year for which the return was unlogged, with the total being equal to the liability on that year’s return or determination

The details held on the SA record must be corrected manually, by amending any details incorrectly amended and based on that return, for example an address. Advice on amending details held on the SA taxpayer record is available in section ‘Maintain Taxpayer Record’, in business area ‘Records’.

Any action taken based on missing information must also be unravelled, for example an enquiry opened on the unsatisfactory return must be closed because the basis for the enquiry no longer exists.

When a return with a corresponding charge is unlogged a work item is created and entered on the ‘Fully Captured / Unlogged Return’ Work List.

The Work List is allocated to the Clerical Processing Manager in the office with processing responsibility. For more information on the action to take see section ‘Returns Worklists’ in this business area.