SAM100300 - Records: set up taxpayer record: when an SA record is required
PAYE cases
The National Insurance and PAYE Service (NPS) will automatically perform end of year reconciliations of individual records. Where the SA indicator is not set, work item 117 ‘Potential SA case’ will be created if the following applies
- There is a current live employment, JSA claim, IB claim or occupational pension
And
- The total taxable income before allowances are set off exceeds £100,000
See the PAYE Manual (PAYE93058) for guidance on dealing with work item 117.
Full criteria for an SA record are detailed in subject ‘Criteria For PAYE/SA Record’ (SAM100050).
An SA record is also required for all taxpayers who have
- A PAYE income source that requires issue of an annual return
- A PAYE income source that gives rise to an underpayment on a Tax Calculation, which is either unsuitable for coding out or amounts to £2,000 or more
- Refused to complete a relevant review form
- Completed the relevant review form and evidence indicates there is undisclosed or understated income
- Completed form SA1 identifying a new or existing source of income which requires completion of an SA return.
In day to day work, you will need to set up an SA record only where you recognise that the SA criteria is met and an SA return is required for the previous year. See also SAM100020.
Non-PAYE cases
A taxpayer will have to complete form CWF1, SA400, SA401, SA402 or SA1 if the criteria at SAM100050 are met and an SA record is needed. The reasons for the completion of either of these forms may include
- Trading profits or profits from a profession or vocation
- Charges arising on interest and annual payments
- Foreign income
- Taxed Income liable at higher rate
- Capital Gains Tax liability
- Charges on income not otherwise charged to tax
