COM132050 - Returns / notices: return handling: logging and capturing returns
This subject is presented as follows:
Introduction
Validation during capture
Exceptions to recording the self assessment in CRTN
Supplementary pages
Returns logged but not captured
CT Pay and File APs
Introduction
Returns submitted electronically using CT Online are logged, captured and the self assessment recorded automatically by COTAX whenever possible. If the return cannot be logged because COTAX cannot match the return to one of the APs on the record, it will put the case on EFRL (E-filed Return Work List). You need to use Function MAPD (Maintain AP Dates) to amend the AP structure and COTAX will then try again to process it overnight. If that is unsuccessful, you have to log and capture the return as ‘E-filed with manual intervention’ and record the self assessment.
When COTAX receives an e-filed return that it cannot match to an AP on the record, it sets inhibitions on all APs with outstanding returns to prevent the issue of
- Payment and return reminders and
- Penalty determinations
The inhibitions remain in place until
- The AP record is amended and the return logged
Or
- The signal is unset
When, exceptionally, the HO Technical Support Team has agreed to accept a paper return, a Clerical Caseworker should log it on the day of receipt and proceed to capture the details and record the self assessment.
If the AP end date is on or after 1 April 2010, you must set the ‘E-filing exception’ signal using Function ACTP (Amend Taxpayer Details) before manually logging a return.
Logging a return does not record a liability. The self assessment (Word 23.5kb) must be recorded after the return has been successfully captured. When you use Function LRTN (Log Return), COTAX automatically flows to CRTN (Capture Return) and at the end of that function, you can normally record the self assessment.
Validation during capture
When you are capturing a return, COTAX
- Performs validation to ensure the figures you are capturing agree with its rules
- Highlights any apparent errors and
- Allows you to amend or confirm those entries
(This text has been withheld because of exemptions in the Freedom of Information Act 2000)
Exceptions to recording the self assessment in CRTN
There are some circumstances where COTAX cannot automatically record the self assessment for an online return and it stops you recording the self assessment if you are capturing the return manually. This is where
- The return contains relief carried back from a later AP
- The date of receipt of the return is more than 6 years after the end of the AP
Note: This time limit has been changed to 4 years by legislation and COTAX will be updated in October 2011
- Exceptionally, there are claims present on a Revenue Determination linked to the AP
- There is an Informal Discharge or Manual Remission on the AP
- Tonnage Tax is present
- A Revenue Determination is awaiting issue on this, or a linked superseded AP
- ‘Ring fence Corporation Tax included’ has been captured but the case owner is not an Oil Taxation Office
- Construction Industry tax deductions or tax repayable are present and the AP start date is after 05/04/2002. This can apply only to a paper return.
You must pass these cases to a CT Co-ordinator or Technical Caseworker to record the self assessment using Function RAMA (Record / Amend Assessment).
Supplementary pages
The only supplementary page which is captured onto COTAX automatically or manually is the CT600J (Disclosure of tax avoidance schemes).
Returns logged but not captured
LRLC (Returns Requiring Capture List) shows you any paper returns that need further attention.
CT Pay and File APs
Very exceptionally, you may need to log and capture a return for a CT Pay and File AP. Companies cannot submit returns for CTPF APs online, so must do so on paper.
If you do capture a CTPF return, COTAX records the return charge. A Technical Caseworker needs to use Function SRTN (Screen Return) and then records an assessment on the record.
If there is no assessment for the AP, COTAX automatically begins the recovery process for the declared liability (that is, the return charge). After 14 days it issues a payment application for any unpaid tax provided the normal due date (Word 49kb) has passed.
If the company has already paid more than the amount shown as due by the return, COTAX will not make any reallocation or repayment automatically until you make an assessment. For further information see the 'Repayments And Reallocations' business area. See section ‘CT Pay and File Assessments’ in the ‘Assessing’ business area.
For a list of functions to use in particular situations, see COM132021.
For legislation applying to this subject, see COM132022.
