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COM102012 - Penalties: penalty work lists: penalties requiring review list (PENR) (Action Guide)

To deal with cases on the ‘Penalties Requiring Review List’ in the responsible office consider steps 1 - 31 below.

In all cases start at step 1 and then

Follow steps 2 - 23 for cases where penalties have previously been issued manually
Follow steps 24 - 31 for cases requiring special consideration

The guide is presented as follows

Initial action	Step 1
Filing date changed	Steps 2 - 6
Amended assessment / Self Assessment	Steps 7 - 11
Back dated return	Steps 12 - 16
Return receipt date earlier than date of penalty occurrence	Step 17
An AP is superseded and a penalty has been made on the superseded AP	Step 18
An appeal is withdrawn against a penalty determination	Step 19
All inhibits are removed and a previous determination was manually amended	Steps 20 - 21
A return is logged and captured no assessment or self assessment raised and a tax related penalty stage has been reached	Step 22
A return is unlogged after an assessment or Self Assessment raised and tax related penalty determinations have been made	Step 23
Administrator / Receiver details are entered and a penalty determination has been made	Steps 24 - 25
The TR1 point has been reached and the company is part of a Group Payment Arrangement	Steps 26 - 28
The company has gone in to liquidation	Step 29
An AP status is changed from ‘live’ to ‘dormant’ or ‘exempt’, and a penalty determination has been made and the company is now outside the charge to CT	Steps 30 - 31

Initial action

1.	Use Function PENR (Penalties Requiring Review List) to display the work list, then
	Select the entry that you want to work
	And
	Select the [View] button to see all available details for the case
	Check Function VPPD (View Payments and Postings Details) to check the payment position of any penalty charges already on record
	Check which of the following is shown as ‘Y’ (Yes)
	Filing date changed. If ‘Y’ go to step 2
	Amended assessment. If ‘Y’ go to step 7
	Backdated return. If ‘Y’ go to step 12
	Sup AP with liability. If ‘Y’ go to step 18
	Manual Amendment. If ‘Y’ go to step 20
	Return Unlogged. If ‘Y’ go to step 23
	Company in Administration / Receivership. If ‘Y’ go to step 242
	Group Payment Arrangement. If ‘Y’ go to step 264
	Company in Liquidation. If ‘Y’ go to step 287
	Company outside the charge to CT. If ‘Y’ go to step 308
	Note: For cases where no specific reason is displayed go to steps 17, 19, or 22 to decide what action is required

Filing date changed

2.	Select the [Options] button to go to the Process Selected Work List Case screen. Use Function DAPD (Display AP Details) to check the filing date (Word 23.5kb), or deferred filing date (Word 23.5kb) (if a revised filing date was entered using Function RDAC, this will appear as the filing date in DAPD) and
	Select the [Exit] button and return to the Process Selected Work list Case screen
3.	If the change affects the amount of penalty charged
	Select the [OK] button to select the normal next action Function PPEN (Prepare Penalty Determination)
	Enter the penalty type (‘F’ Flat-rate, or ‘T’ Tax-related) and select the [OK] button
4.	If Function PPEN (Prepare Penalty Determination) shows that the NPR (No Penalty Required) or INH (Inhibit Penalty) signal is set
	Select the required line
	And
	Select the [MPEN] button
5.	In Function MPEN (Maintain Penalty Signals)
	Make sure that all penalty inhibition signals are set to ‘N’
	Select the [OK] button to return to Function PPEN (Prepare Penalty Determination)
	Select the [OK] button to issue the penalty determination
	The case will be automatically deleted from the list
6.	If the change will not affect the amount of penalty charged
	Select the [Return] button to go back to the work list
	Select the [Delete] button to delete the case from the list

Amended assessment / Self Assessment

7.	Select the [Options] button to go to the Process Selected Work List Case screen. Use function DASS (Display Assessment Details) to check whether the amended assessment or self assessment (Word 23.5kb) has amended the tax charged and
	Select the [Exit] button to return to the Process Selected Work List Case screen
8.	If the amendment does alter the tax-related (Word 26kb) penalty charged
	Select the [OK] button to select the normal next action Function PPEN (Prepare Penalty Determination)
	Enter the penalty type (‘T’ Tax-related) and select the [OK] button
9.	If Function PPEN shows that the NPR (No Penalty Required) or INH (Inhibit Penalty) signal is set
	Select the required line
	And
	Select the [MPEN] button
10.	In Function MPEN (Maintain Penalty Signals)
	Make sure that all penalty inhibition signals are set to ‘N’
	Select the [OK] button to return to Function PPEN
	Select the [OK] button to issue the penalty determination
	The case will be automatically deleted from the list
11.	If the amendment does not alter the tax-related penalty charged
	Select the [Return] button to go back to the work list
	Select the [Delete] button to delete the case from the list

Back dated return

12.	Select the [Options] button to go to the Process Selected Work List Case screen
	Use Function DAPD (Display AP Details) to check the date the return was received
	And
	Select the [Exit] button to return to the Process Selected Work List Case screen
13.	If the date of receipt will affect the amount of penalty charged
	Select the [OK] button to select the normal next action Function PPEN (Prepare Penalty Determination)
	Enter the penalty type (‘F’ Flat-rate, or ‘T’ Tax-related) and select the [OK] button
14.	If Function PPEN (Prepare Penalty Determination) shows that the NPR (No Penalty Required) or INH (Inhibit Penalty) signal is set
	Select the required line
	And
	Select the [MPEN] button
15.	In Function MPEN (Maintain Penalty Signals)
	Make sure that all penalty inhibition signals are set to ‘N’
	Select the [OK] button to return to Function PPEN (Prepare Penalty Determination)
	Select the [OK] button to issue the penalty determination
	The case will be automatically deleted from the list
16.	If the date of receipt will not affect the amount of penalty charged
	Select the [Return] button to go back to the work list
	Select the [Delete] button to delete the case from the list

Return receipt date earlier than date of penalty occurrence

17.	No specific ‘reason’ to indicate this type of case will be displayed when you view the case in accordance with step 1 above. The date of receipt will, however be shown
	Select the [Options] button and return to the Process Selected Work List Case screen
	Select the [OK] button to select the normal next action Function PPEN (Prepare Penalty Determination). This will show you the penalties charged and the penalties due
	Enter the penalty type - ‘F’ Flat-rate (Word 28kb)
	Select the [OK] button to issue the revised penalty determination
	The case will be automatically deleted from the list

An AP is superseded and a penalty has been made on the superseded AP

18.	You will need to review the penalties made on the superseded AP and penalties required to be made on the superseding (new) AP by reference to the specified period (Word 23kb) and revise as necessary
	Select the [Options] button and return to the Process Selected Work List Case screen
	Select the [OK] button to select the normal next action Function PPEN (Prepare Penalty Determination). This will show you the penalties charged and the penalties due
	Enter the penalty type - ‘F’ Flat-rate, ‘T’ Tax-related
	Select the [OK] button to issue the revised penalty determination
	The case will be automatically deleted from the list.

An appeal is withdrawn against a penalty determination

19.	No specific ‘reason’ to indicate this type of case will be displayed when you view the case in accordance with step 1 above. You must consider the circumstances giving rise to the withdrawal of the appeal, and any effect they may have on the existing penalty position
	Select the [Options] button and return to the Process Selected Work List Case screen
	Select the [OK] button to select the normal next action Function PPEN (Prepare Penalty Determination). This will show you the penalties charged and the penalties due
	If you decide that further amendment to the penalty is due
	Select the [OK] button to issue the penalty determination
	The case will be automatically deleted from the list
	If you decide that no further amendment to the penalty is due
	Select the [Return] button to go back to the work list
	Select the [Delete] button to delete the case from the list

All inhibits are removed and a previous determination was manually amended

20.	The case will have been listed because
	Previously existing penalty inhibition signals have been removed
	And
	A previously existing determination has been amended
21.	You should
	Select the [Options] button to go to the Process Selected Work List Case screen
	Select the [OK] button to select the normal next action Function PPEN (Prepare Penalty Determination). This will show you penalties charged and penalties due
	If you decide that further amendment to the penalty is due
	Select the [OK] button to issue the penalty determination
	The case will be automatically deleted from the list
	If you decide that no further amendment to the penalty is due
	Select the [Return] button to go back to the work list
	Select the [Delete] button to delete the case from the list

A return is logged and captured no assessment or self assessment raised and a tax related penalty stage has been reached

22.	No specific reason will be shown for cases of this type when you view the case in accordance with step 1 above. There will be an entry in the Penalty Reached field
	Select the [Options] button to go to the Process Selected Work List Case screen
	If you want to record a self assessment
	Select Function RAMA (Record / Amend Assessment). When you have completed this function you will be automatically taken to a penalties actions options box. The three choices available are
	To allow automatic issue of the penalty determination
	Use Function PPEN (Prepare Penalty Determination). This will show you the penalties charged and the penalties due
	Set the No Penalty Required signal
	After you have completed the action, the case is automatically deleted from the list
	If you do not want to record a self assessment at this stage
	BF the case, entering an appropriate BF note, until you are in a position to finalise matters and revise the penalties accordingly

A return is unlogged after an assessment or Self Assessment raised and tax related penalty determinations have been made

23.	Revise any tax-related penalty, leaving the flat-rate penalty determinations in place. Any Revenue Determination (Word 25kb) which was displaced by the return will be re-instated and any tax-related penalty should therefore be revised in accordance with the determination
	Select the [Options] button and return to the Process Selected Work List Case screen
	Select the [OK] button to select the normal next action Function PPEN (Prepare Penalty Determination), this will show you the penalties charged and the penalties due
	Enter the penalty type - ‘T’ - Tax-related
	Select the [OK] button to issue the revised penalty determination
	The case will be automatically deleted from the list

Administrator / Receiver details are entered and a penalty determination has been made

24.	When you view the details of a case as in step 1 above, you will see it listed as ‘Company in Administration / Receivership - Y’. This will occur when the following condition applies
	Administration (not subject to the Enterprise Act 2002) / Receivership details have been entered in Function ACAP (Add / Amend Capacitor details). Penalties are not normally charged during any period of receivership, old style administration or administrative receivership
25.	You should
	Select the [Options] button to go to the Process Selected Work List Case screen
	Select the [OK] button to select the normal next action Function PPEN (Prepare Penalty Determination). This will show you penalties charged and penalties due
	Select the [OK] button to issue the penalty determination
	Review the penalties using the information in section ‘Late Delivery of Returns’ (COM100000)
	Dependant on the result of your review
	Select the [OK] button to issue the amended penalty determination and the case will be automatically deleted from the list
	Or
	Where you do not wish to issue an amended penalty determination delete the entry

The TR1 point has been reached and the company is part of a Group Payment Arrangement

26.	If working in CT Operations
	Refer the case to the HO Technical team to review the case
	Enter a BF date
27.	When you view the details of a case as in step 1 above, you will see it listed as ‘Group Payment Arrangement - Y’. This will occur when the following conditions apply
	The TR1 point has been reached (18 months after end of AP)
	And
	The company has a group payment arrangement
28.	In a Group Payment Case, the calculation of tax-related penalties may be based on a notional apportionment of payments under the GPA contract, rather than the actual payment history. That notional apportionment cannot occur before 24 months after the end of the accounting period and requires Technical Caseworker judgement
	If you are not the co-ordinating Technical Caseworker, alert him / her to the potential TR1 penalty position
	Put the file on BF until the 24 month point
	Review the case again at the 24 months (to see if you are at the TR2 point)
	Then contact the co-ordinating Technical Caseworker for advice about what notional payments to allocate to your company in calculating the unpaid tax for tax related penalty purposes

The company has gone in to liquidation

29.	When you view the details of a case as in step 1 above, you will see it listed as ‘Company in Liquidation - Y’. This will occur when the following condition applies
	A liquidation date has been entered in Function ACTP(Amend CT Payer Details)
	Penalties are not normally charged for late returns covering periods up to the date of liquidation in Creditors Voluntary or Compulsory Liquidation. However they are normally charged for Members Voluntary Liquidations. When you set the ‘Co Liqn - Mem Vol’ field to ‘N’ or ‘Y’ in Function ACTP, it allows COTAX to distinguish between liquidation types and either set the No Penalty Required signal for relevant APs before or after the date of liquidation, or to charge penalties for appropriate APs

An AP status is changed from ‘live’ to ‘dormant’ or ‘exempt’, and a penalty determination has been made and the company is now outside the charge to CT

30.	When you view the details of a case as in step 1 above, you will see it listed as ‘Company outside the charge to CT - Y’. This will occur when the following conditions apply
	There is a change to the AP status from ‘live’ to ‘dormant’ or ‘exempt’ and the company is now outside the charge to CT.
	A company has been served with a Notice to Deliver, and
	A penalty has been charged
31.	You should
	Select the [Options] button to go to the Process Selected Work List Case screen
	Select the [OK] button to select the normal next action Function PPEN (Prepare Penalty Determination). This will show you penalties charged and penalties due
	Review the penalties using the information in subject Penalties / Late Delivery / Companies Requiring Special Consideration / Companies Outside the charge to CT
	Dependant on the result of your review
	Select the [OK] button to issue the amended penalty determination, and the case will be automatically deleted from the list
	Or
	Where you do not wish to issue an amended penalty determination delete the entry

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