SAM121001 - Returns: individuals returns: introduction
General
On receipt of return
Redirecting returns where the responsible office is elsewhere
Prepare for capture
Capture return
Coding (integrity) check
Processing the information
Storing the return
General
- The processing of an Individual’s return, both Main Tax Return (SA100) and Short Tax Return (SA200) which cannot be captured using Automated Data Capture (ADC), can be broken into four distinct areas
- Action to take on receipt of the return
- Preparing for capture of the return
- Capture of the return information and post capture checks
And
- Carrying out the Coding (Integrity) Check (where applicable)
Note: Further information regarding the SA200 and the ADC process is available at subject ‘Short Tax Returns’ (SAM121100), and also in section ‘Returns Processed At HMRC Netherton’ (SAM127000 onwards).
The return must be
- Electronically filed
- A computer generated version which is identical to the official HMRC form for the correct year
- The official HMRC paper form for the correct tax year
Note: For years up to, and including 2006-07, an approved alternative (but not faxed) was accepted
- Be signed by the correct person, including a person acting in any capacity. Note: The return may be completed in ink or pencil, either is acceptable although completion in ink is preferable. Do not refuse a return because it has been completed in pencil
- Include all supplementary pages indicated on the SA100 as being necessary. (The exception being a director with no income from office and who has entered a note to this effect in the white space). Note: A spreadsheet, table or list providing details which should be on separate supplementary pages (multiple employments, self-employments, partnerships) is not acceptable
- Not include, on the SA200, turnover of £70,000 or more from Self Employment or £70,000 or more from Land and Property
The return that you receive in the majority of cases will be the paper return that was issued. The taxpayer may however submit a paper copy of a computer generated identical version of the tax return or a manually altered earlier years return as a substitute for another year. Further details are available in subject ‘Computer Generated Versions of Tax Returns’ (SAM121020) and ‘Manually Altered Earlier Years Returns’ (SAM121021).
All paper returns received are treated exactly the same.
On receipt of return
On receipt of the return the date of receipt must be stamped on the return and recorded (logged) on the taxpayer record using function LOG RETURN. Where bar code reading equipment is available this should be used to log returns as it is quick and accurate. There is an exception to when function LOG RETURN should be used and this is detailed in subject ‘Part Year Individual Returns for the Current Year’ (SAM121040). Note: There are exceptions to this process - see ‘Redirecting returns where the responsible office is elsewhere’ below.
Redirecting returns where the responsible office is elsewhere
Where a return has been received at an office other than a Regional Post Room, the return should be stamped with the date of receipt and redirected according to its type as follows. The return will be logged upon receipt at its destination.
Charities, Assets and Residence - Trusts and Estates returns
Non Resident Trusts send to
Trusts and Estates, Non Resident Trusts
Ferrers House
Castle Meadow Road
Nottingham
NG2 1BB
Resident Trusts send to
Trusts & Estates
Meldrum House
15 Drumsheugh Gardens
Edinburgh
EH3 7UQ
CAR High Net Worth Unit and CAR Personal Tax International returns
Use function MAINTAIN RESPONSIBLE OFFICE to identify the responsible office and use the CAR Contact Us (HMRC Intranet) link for further contact details.
Short Tax Returns (SA200)
(This text has been withheld because of exemptions in the Freedom of Information Act 2000)
Comben House
Farriers Way
Netherton
Merseyside
L69 1BY
All other SA Returns
(This text has been withheld because of exemptions in the Freedom of Information Act 2000)
Saxon House
1 Causeway Lane
Leicester
LE1 4AA
All other returns should be logged in the office in which it is received, provided that office has the LOG RETURN function available on Local Data Capture (LDC). The return must then be processed as soon as possible.
Other clerical reviews are required on receipt of the return in the responsible office as follows
- To identify where a computer generated version of the form has been received, but is not identical to the official HMRC form. The return should be sent back immediately with accompanying letter SA602 or SA602A where appropriate, available through SEES
- To check whether the return is for the correct year and identify where a return for an earlier year has been altered manually so that it is being submitted as a substitute. Such returns should not be logged but should be sent back immediately with accompanying letter SA502A available through SEES
- To consider whether any action is required immediately, for example, to deal with correspondence or attachments received with the return. Any payments received with the return should also be extracted, payslips prepared and forwarded, and the return noted
And
- To identify any changes to the taxpayer’s personal details to enable the taxpayer’s record to be updated prior to capture
Prepare for capture
Following the initial review of the return further action is required to prepare the return for capture. It is necessary for this action to take place to identify
- Returns that include a PAYE source of income
- Returns that include more than one sole trading source
- Unsatisfactory returns
And
- Revenue Calculation cases where it is necessary to calculate the amount of certain entries
Unsatisfactory returns should be unlogged before the return is
- Sent back to the taxpayer or agent who submitted it regarding the omissions
Or
- For completion of a further return in certain SA200 cases
Where an agent is acting, a letter should also be issued to the other party notifying them of the action taken. If, in a case where an agent is acting, it is not possible to tell who submitted the return, it should be sent back to the taxpayer as it is their ultimate responsibility to ensure that a satisfactory return is submitted.
Notes:
| 1. | Unsatisfactory returns received on 1 November should not be treated in the same way as those received in the period 18 to 31 October. This is to correspond with the fact that a return received on that date is considered to be late and will attract a penalty |
| 2. | Where the return has been received prior to the filing date but is being returned as unsatisfactory within14 days before the filing date, a period of 21 days is given to allow a satisfactory return to be submitted. A period longer than 21 days should be allowed in certain exceptional circumstances, for example overseas addresses or UK geographical areas where there are known longer postal times |
If the information is not supplied within 21 days, or longer where allowed, automatic penalties will apply.
Capture return
A satisfactory return is then ready for capture. The earliest return that can be entered in LDC is for 2007-2008, until 5 April 2012, then the earliest will be 2008-2009. The information is captured under Process Now (using information enclosed with the return, see SAM121260 ‘Unsatisfactory Individual Returns’) and any enquiries dealt with under Check Later.
Information regarding action on receipt of SA returns for an out of date year, for which capture is no longer possible using Local Data Capture, is available at subject ‘Returns for out of date years: Individuals’ (SAM121080).
Notes:
| 1. | It is important that you capture all relevant entries on the return as fully as possible and do not omit figures from return boxes simply because the system will allow you to do so. This is because even where a box does not affect the calculation of the liability, the information is used for statistical, compliance and other purposes. Also, what you capture on the system needs to provide as complete a picture as possible for other staff to view. |
| 2. | Where a return has not already been identified as an ‘Away’ return at the pre-capture stage, the return should be fully captured and coded in the office of receipt. Any work list items arising from capture of the return will be the responsibility of the responsible office. The return should then be filed away in the receiving office. |
If a taxpayer submits more than one return on the same day it is important that the returns are captured in chronological order. This will ensure that any repayments claimed on the returns are issued to the correct person.
As details are entered the computer makes checks, identifies errors and gives warnings where unlikely situations arise. Some clerical reviews are necessary, for example, to deal with correspondence received with the return and to repair obvious errors or mistakes on the return.
The computer will carry out one calculation and can calculate the liability in the majority of cases.
There are rare occasions when the computer will calculate the liability but the calculation will be wrong (SAM121275). These cases should be identified before or during capture. The return details must not be captured in these cases, the liability must be calculated manually and the liability entered using function CREATE RETURN CHARGE.
It is possible to store a return if only partially captured in LDC where further information is required. It is important to clear these cases as quickly as possible as they are only held in LDC for a short period of time before they are deleted.
A paper report of returns held on LDC can be obtained for management purposes by using the LDC Administrator function LDC ADMIN 2000. Other paper reports are produced to help manage returns in LDC.
Coding (integrity) check
(Applies only to returns captured before 6 April 2010, for tax years 2008-2009 and earlier.)
After an SA return has been captured, in cases where there is PAYE income it is necessary to carry out a comparison of the information on the return with information held on
- The PAYE Service Function IABD (Income, Allowances, Benefits and Deductions)
Or
- The Employer Compliance System record
In the absence of ECS details the check is confined to a comparison of the return and the coding record of the same year.
This check is known as the Coding (Integrity) Check.
Processing the information
When the Coding (Integrity) Check has been completed, the return information is passed to the main computer and processing of the information (SAM121515) is carried out and the taxpayer’s record is updated.
Storing the return
Where return related post is received in the office / area in which the return is held, the post should be linked and stored with the relevant return. Where the relevant return is not held in the office / area dealing with the return related post, the post should be stored in post batches. In all cases, details of the item filed and return / post batch number should be entered in SA Notes.
Information on the other types of return received is available in other sections of the ‘Returns’ business area of the SA Manual as follows
- Partnership return - see section ‘Partnership Returns’ (SAM122000 onwards)
- Tax Return for Trustees of approved self administered Pension Schemes - see section ‘Trust Returns’ (SAM123000 onwards)
- Trust return - see section ‘Trust Returns’ (SAM123000 onwards)
