If no SA record exists one is set up for the year of bankruptcy.
For a taxpayer with a dormant SA record it is reactivated and used
to deal with liability falling into the bankruptcy.
After receipt of the SA return for the year of bankruptcy a
second record is set up if the taxpayer is liable for any part of
that return year.
If the taxpayer has a live SA record it is used to deal with
liability falling into the bankruptcy. A second SA record is also
set up on dealing with the notification of bankruptcy.
The second SA record is used to deal with liability, if any,
in the year of bankruptcy which the taxpayer is liable to pay and
for years after the year of bankruptcy.
The main reason for setting up a second SA record is that it
is likely that live SA taxpayers will continue to be so in later
years.
If SA selection criteria are not present on the
taxpayer’s PAYE Service record for later years the Annual
Maintenance process will list the second SA record for clerical
review (at which stage it can be made dormant).
Further information is provided at INS6301 onwards and in
Self Assessment Manual (SAM) Records.
