COM132034 - Returns / notices: return handling: ‘not allocated’ online returns and ‘mismatched’ paper returns
This subject is presented as follows
General
Penalties
Correction
Enquiries
Return period relating to a CT Pay and File AP
General
Returns submitted online
A company or agent can change the existing Accounting Period (AP) structure when submitting a return using CT Online. The Government Gateway ensures that
- The AP created does not exceed 12 months
- APs are continuous
- The new AP entered by the user has at least one day in common with the AP to be superseded
When COTAX receives the return, it will try to automatically amend the AP structure to fit the dates shown on it. If it is unable to do so, the case is listed on EFRL (E-Filed Returns List) and the return is referred to as ‘not allocated’.
Paper returns
When, exceptionally, you receive a paper return that does not match a live AP on COTAX, Function LRTN (Log Return) allows you to amend the AP structure. If you are unable to do so, the case is listed on AAPR (Amend Accounting Period List) and is referred to as a ‘mismatch’.
All returns
Because COTAX has not been able to process the return and has put it on a work list, you cannot see it in Function DRTN (Display Return Data). However, the e-filed return will appear in the list of return periods in CT View Returns as ‘Not Allocated’.
Before you can capture the return and record the self assessment, you need to make any necessary amendments to the AP structure.
Penalties
Where COTAX treats a return as ‘not allocated’ or ‘mismatched’, it automatically sets an ‘Inhibit Penalty’ signal for all APs for which a return is outstanding for that company.
This inhibits the issue of
- Return reminders
And
- Penalty determinations
For further information see section ‘Penalty Determinations’ in the ‘Penalties’ business area.
Correction
Every company tax return for an accounting period must include a self assessment of the amount of tax which is payable by the company for that period. A company tax return is regarded as a return for an accounting period if the period is treated in the return as an accounting period and is not longer than twelve months, even though it is not, or may not be, an accounting period in fact.
You can only challenge the validity of the AP provided by
- Correcting it, if the apparent error comes from a failure to apply the proper principles to be used in arriving at CT APs
Or
- Opening an enquiry into the return, if the apparent error comes from an incorrect view of the facts
As a general guide, the Technical Caseworker should give authority to correct a return in these circumstances only if
- The company or agent acknowledges the existence of a fact that causes an AP to stop or start, but fails to recognise or give effect to the relevant legal principle
And
- You believe that the company or agent will be content to follow your approach, taking account of any implications it may have on the obligation to make a return for some other period(s)
For further information on the action to be taken, see the “‘Not allocated’ online returns and ‘mismatched’ paper returns Action Guide" (COM132035).
Enquiries
It is possible that the start or finish of a trade will be in question, and the company or agent are unwilling to accept the fact of commencement or cessation, or the date on which the event took place. You can only challenge such cases by opening an enquiry into the return.
If you decide the position can only be dealt with by way of an enquiry
- Print the return and attachments if it has been submitted through CT Online
- For those offices using CQI (Word 31KB) or Caseflow to control enquiry cases, the following are automatically entered and amended on COTAX from those systems
-
- Enquiry in Progress signal
- Started date
-
- Enquiry type
- If your office does not use CQI or Caseflow you must use Function MAPS (Maintain AP Signals) to enter or amend the entries in the above fields
- Pass the return back to the Clerical Caseworker to log (as E-Filed with manual intervention if submitted online) and capture the return and record the self assessment
And
- Follow the guidance given in the ‘Enquiries’ business area
For more information on CTSA APs, see ‘Dealing with not allocated online returns and mismatched paper returns’ (Action Guide) (COM132035).
Return period relating to a CT Pay and File AP
Under the appropriate legislation, it is for the company in the first instance to determine the period for which a return should be made. The position alters however when it comes to the assessment. Under CT Pay and File
- The Technical Caseworker makes the assessment
And therefore
- Determines the period for which it should be made
Where the Clerical Caseworker cannot log a CT Pay and File return on receipt, a Technical Caseworker must deal with the return in accordance with the Action Guide Mismatched return CTPF AP (COM132062).
For a list of forms relevant to this subject, see COM132011.
For a list of functions to use in particular situations, see COM132021.
For legislation applying to this subject, see COM132022.
