Some taxpayers will be within SA simply because they have income
from a certain source. For example, Rent a Room.
In some cases that source may show a loss year after year,
and the taxpayer will advise that profits are unlikely for the
foreseeable future. Rather than issue an SA return every year, it
will suffice to issue a return periodically to check the position.
In this circumstance, on receipt of a return the taxpayer
may question the need to complete it. You should advise him or her
that the return should be completed and filed. On receipt, you will
consider whether a return is required in future years, and if so,
how often.
The LU YEAR signal may be set on a Partnership or Individual
SA record to inhibit issue of a return for a period up to 3 years.
For a Trust it can be set for a period of up to 5 years. A return
will be issued automatically for the year following that entered in
the LU YEAR field.
After the record has been selected by the automatic
selection process for bulk issue of returns, the computer will
extend the LU YEAR period by three years.
When the return is captured, if it shows liability to tax
and / or Class 4 NIC a work item is created on the ‘Returns
Review’ Work List as LIABILITY UNLIKELY. Detailed advice is
available in the ‘Returns’ business area, section
‘Returns Work Lists’.
If you decide that the position need be checked only
periodically
