SAM100070 - records: set up taxpayer record: dormant SA record: how to re-activate
Once an SA record has been set up it will remain on the SA database indefinitely. It can be made dormant by preventing the issue of future SA returns, but is still available to re-activate if required at any time.
On following the Action Guide ‘Set Up Individual Record’ (SAM100221), you may find that an SA record exists, but is dormant. You should re-activate that record using the Action Guide.
Taxpayer details
A taxpayer’s personal details on the SA record even though the computer record is dormant, will continue to be updated automatically.
When a dormant record is re-activated the taxpayer’s details held on the SA record will be updated automatically and where applicable linked to the PAYE record.
When an SA record is re-activated the system will automatically issue a ‘Welcome’ letter (SA250) to the taxpayer. Where an agent is acting on behalf of the taxpayer and a valid form 64-8 is in place, a copy of SA250 (Agent) will be sent to the agent. The issue of this output can be inhibited by setting the SA Entry / Exit Letter Inhibited signal, for example where qualifying payments are made in respect of personal pension payments and charity payments. In these circumstances an appropriate letter should be issued to the taxpayer instead. Also consider if the Automatic Closure Inhibited signal should be set.
Re-activated after refinement
When a record is re-activated after refinement it is essential that the Automatic Closure Inhibited signal is set to prevent the record being refined the following year. The issue of the SA250 should also be inhibited because the wording is not appropriate in these circumstances.
Revenue Loss
A dormant record will hold details of any remissions or write-offs made. Function VIEW STATEMENT will display the message ‘Please note there is a remission posted on this account’.
You will need to consider whether the remission or write-off has any bearing on your proposed course of action, and / or whether the remission or write-off should be cancelled. The classes of remission or write-off where cancellation is most likely to be necessary are
- Class 1 - Gone unknown
- Class 4 - Not worth further pursuit
- Class 7 - Gone abroad
On re-activating a dormant record that holds a remission or write-off (the advisory message will be displayed as above), the office with responsibility for processing work should ask the Charge Remitter in the Debt Management office to review these.
Payments on account
If there was no SA liability for the year previous to the year for which you want to re-activate the SA record, you need take no action concerning payments on account.
If the year for which you want to re-activate the SA record immediately follows the last year for which there was SA liability, you must review the payments on account. In this situation, the taxpayer is liable to make payments on account based on the liability shown on the return for the previous year.
Where those payments on account have been reduced to nil, because the source ceased, you will have to restore them. The source giving rise to those payments on account has no relevance. The onus is on the taxpayer to claim a reduction if he / she believes the sums due to be excessive.
