PAYE93120 - taxpayer end of year: reviewing liability at year end: open case reason - potential at CY-1

This entry will be present where either the POTA or the POTAC signal has been set. If POTA has been set clerically there should always be an ENOTE to show why, and the record should be reviewed or cleared in the usual way.

The POTAC signal is set by the computer system at reconstitution each year and the most common reason for this is that the P11D information held in ENOTES differs from the amounts coded. This includes cases where no benefits have been coded but P11D information has been received. There will be no ENOTE to indicate why this signal has been set, other than the P11D information.

The computer system also sets the POTAC signal for the year of review at reconstitution where

• The HRS signal is set and the latest code for the year includes any of the following
• • Underpayment restriction (UPR)
  • Widows and orphans relief (WO)
  • Allowances allocated elsewhere (AAE)

• The HRS signal is set and a potential underpayment arose during the year
• The latest coding record shows MAT and the PENAL signal is set for the following year

The computer system will also set the POTA signal for the year of review if any of the following are included in the latest coding

• Loan interest paid (LOAN)
• Income from property (IFP)
• Higher rate adjustment (HRA)
• Excess widows and orphans restriction (EWO)
• Personal pension relief (PPR)
• Double taxation relief (DTR)
• Adjustment for charges (AP)
• Loss relief (LOSS)
• Concessional relief (CR)
• Foreign pension allowance (FPA)
• Charity - Higher rate relief (CHR)
• Adjustment for Unemployment Benefit (AUB)
• Excessive lower rate (ELR)
• Lower rate allowance (LRA)