SAM121331 - Returns: individuals returns: capture operators guidance: 2003/04 return

2003/04 Individuals Return

The majority of return entries can be captured from the return without you having to consider the effect of each entry on the case as a whole. There are occasions however when you must stop and think about, and possibly calculate, amounts that have to be entered during capture.

During capture of return information you will be presented with warnings that advise you of unlikely situations and of situations where you should consider the case more fully and take clerical action.

You will not see warnings in all situations where you need to take clerical action and this helpsheet is designed to act as an aid in identifying entries on a return for which you will not be prompted by a warning to take action.

In all cases you should read all the information given in the Additional Information boxes on the return and read and act upon as necessary any warning messages that are displayed. 

Note: If the only additional information details given are the agent’s name and reference you do not need to make an entry in box 23.5.

The list is in the order that a return is presented. You need only refer to this list if the box is completed or relevant claim has been made

  • Select the box number you require information on

12.1, 12.3, 12.6 or 6.6 or additional information

14.3 or 14.7

14.4 or 14.8

15.2

16.14

16.15

18.1 and / or 18.2

18.2A

18.2B

18.5

18.6 and 18.7

18.8

Question 19

19B.14

20.1

Question 21

22.6

23.3

Multiple Standard Accounts information submitted for one basis period

3.2

3.6

3.7

3.8

3.29

3.81 or 4.12

3.86

3.94, 3L.92 or 4.23

3.95, 3L.93 or 4.24

3.96, 3L.94 or 4.25

(This text has been withheld because of exemptions in the Freedom of Information Act 2000)

3.98

3L.86

4.1

4.4

4.16

4.62

4.75A

5.17

6.9 and / or 6.10

Question 7

8.U, 8.L or 8.O

8.12

8.13B

Computer displays Top Slicing Relief box

Top of page

12.1, 12.3, 12.6 or 6.6 or additional information

If the number of years is less than 1 (or the taxpayer has left the box blank only because the number of years is less than 1)

  • Enter 1 in box 12.1, 12.3, 12.6 or 6.6

Top of page

14.3 or 14.7

If Revenue Calculation case

  • Calculate the relief and enter the amount in box 18.5

See section ‘Claims Made Outside a Return’ (SAM114000 onwards)

Note: In a Self Calculation case you should capture the taxpayer's box 18.5 entry as normal.

Top of page

14.4 or 14.8

If Revenue Calculation case

  • Calculate the relief and enter the amount in box 18.8. For further information see business area ‘Repayments’

See also subject ‘Prior Year Adjustments: Individual Returns’ (SAM121180)

Note: In a Self Calculation case you should capture the taxpayer's box 18.8 entry as normal.

Top of page

15.2

Where the taxpayer has entered an amount in this box

  • Check that a qualifying date of birth for the taxpayer or former spouse has been entered at either box 15.2A, box 16.3 or box 22.6

If a qualifying date of birth for the taxpayer or former spouse cannot be verified

  • Repair to 0 (zero) the entry at box 15.2
  • Enter a Customer Service Message advising the taxpayer that without a qualifying date of birth you are unable to process the claim

Top of page

16.14

If amending a return and the surplus allowances are reduced and are not to be withdrawn from the spouse

  • Abort the amendment

See subject ‘Amended Returns Where Allowances Transferred to Spouse’ (SAM124020)

Top of page

16.15

If Revenue Calculation case

  • Ascertain the surplus allowances due
  • Enter in box 16.16 and / or box 16.17 as applicable

See subject ‘Return Entries to be Calculated’ (SAM121200)

Top of page

18.1 and / or 18.2

If PAYE Service source

  • In all cases, obtain entry from the PAYE Service Tax Code History and Financial Event Summary screens

Note: You should also review the PAYE Service record to confirm that the SA link to PAYE Service is present. If no link is present, this should be created by inserting the PAYE Service reference on the SA record using function MAINTAIN SOURCES. Where it is necessary to make the link you should part capture the return until the link is established on the PAYE Service.

See subject ‘Returns Which Include a PAYE Source of Income’ (SAM121210)

Top of page

18.2A

This box should only be completed by a taxpayer in a self-calculation case, and instructions on how to calculate the relief are in the Tax Calculation Guide and Help Sheet IR235.

  • If there is no entry in question 17 in a self-calculation case
    • Delete the entry in box 18.2A
    • Complete capture of the return

Where the taxpayer has entered an amount in this box that does not agree the computer calculated amount

  • An error message will display the computer calculated amount
  • Various actions are required depending on how the difference arose

Top of page

18.2B

In a Self Calculation case, the taxpayer must only enter one set of details in respect of Class 4 NIC for all businesses on the return. Where the taxpayer has more than one business, the working sheet on the Helpsheet ‘More than one business’ will have been used to accumulate information about Class 4 NIC.

Top of page

18.5

This box should only be completed by a taxpayer in a self-calculation case and instructions on how to calculate the relief are in the Tax Calculation Guide.

If there is no entry in box 18.5 in a self-calculation case

  • Do not request amendment from the taxpayer / agent
  • Repair box 18.5 using information on the return

Top of page

18.6 and 18.7

Where the taxpayer has completed boxes 18.6 and 18.7 to make a claim to reduce Payments on Account

  • Check that a valid claim to reduce the payments on account is shown in the Additional Information box, and that the claim has been made within the time limit, before capturing the information

For further information see section 'Claim to Adjust Payments on Account’ (SAM1000 onwards)

Top of page

18.8

This box should only be completed by a taxpayer in a self-calculation case and instructions on how to calculate the relief are in the Tax Calculation Guide.

  • If there is no entry in box 18.8 in a self-calculation case
    • Do not request amendment from the taxpayer / agent
    • Repair box 18.8 using information on the return

Top of page

Question 19

If the taxpayer has ticked the Yes box and has completed boxes 19B.1 to 19B.7

  • Check that a BACS repayment can be made using the information given. Refer to the field help in function CAPTURE RETURN for box numbers 19B.5 and 19B.6 for more information
Where you identify a potential BACS failure
  • Continue to capture the return information, other than the bank / building society details, and send any repayment by cheque to the taxpayer
  • In a Revenue Calculation case or Self Calculation case with repairs, enter a Customer Service Message advising the taxpayer of the action you have taken
  • In a Self Calculation case with no repairs, issue a letter advising the taxpayer of the action you have taken

Any repayment to be made to a nominee whose address is abroad must be made manually.

Where you note that the nominees address is abroad

  • Set the No Repayment signal using function AMEND TAXPAYER SIGNALS, repayment will be made manually on reviewing the work item created
  • Continue to capture the remainder of the return

Top of page

19B.14

This box is not captured but the taxpayer must authorise any repayment to a nominee in this box.

If the taxpayer has not signed the box, you must delete any nominee details entered. The repayment will be issued to the taxpayer.

Top of page

20.1

If PAYE Service source

  • In all cases, obtain entry from the PAYE Service Tax Code History and Financial Event Summary screens

See subject ‘Returns Which Include a PAYE Source of Income’ (SAM121210)

Top of page

Question 21

If the taxpayer has ticked the Yes box

  • Update the taxpayer’s record

See subject ‘Taxpayer Detail Changes’ (SAM121120)

Top of page

22.6

Where a date of birth has not been entered in box 22.6, but Age Allowance has been allowed in the code and the date of birth is shown on the PAYE Service record, you should

  • Enter the date of birth, taken from the PAYE Service record, in box 22.6 of the return
  • Note the return in pencil that the PAYE Service record shows the taxpayer is over 65
  • Enter a Customer Service Message advising the taxpayer of the action you have taken
  • Leave Age Allowance in the code for CY and CY+1

Top of page

23.3

If Revenue Calculation case

  • Calculate the relief and enter the amount in box 18.8. For further information see business area ‘Repayments’

See also subject ‘Prior Year Adjustments: Individual Returns’ (SAM121180)

Note: In a Self Calculation case you should capture the taxpayer's box 18.8 entry as normal.

Top of page

Multiple Standard Accounts information submitted for one basis period

Where more than one set of SAI to be captured for one basis period

  • Capture the SAI for the latest period of account only

See subject ‘Multiple SAI For One Basis Period: Individuals’ (SAM121480)

Top of page

3.2

If the taxpayer follows the guidance in Helpsheet IR223 (Rent a Room for traders), where gross receipts including balancing charges are less than the exemption limit, thus entering ‘Rent a Room’ in box 3.2 and leaving the rest of the Self employment pages blank

  • Complete box 3.9 on screen to enable capture to continue

Top of page

3.6

  • Update the taxpayer’s record

Top of page

3.7

  • Update the taxpayer’s record

Top of page

3.8

Following capture of the return a work item is created if box 3.8 is completed. When you capture the return

  • Use a Customer Service Message to advise the taxpayer that you will review the payments on account for the following year as soon as possible

Top of page

3.29

If the taxpayer follows the guidance in Helpsheet IR223 (Rent a Room for traders) and completes box 3.29 and just one of boxes 3.51 to 3.63

  • Use boxes 3.24, 3.25 and 3.26 on screen

Top of page

3.81 or 4.12

In a Revenue Calculation case

  • Calculate the adjustment and enter the amount in box 18.4 or 18.5 as appropriate

See section ‘Claims Made Outside a Return’ (SAM114000onwards)

Note: In a Self Calculation case you should capture the taxpayer's box 18.4 or 18.5 entry as normal.

Top of page

3.86

  • Calculate the relief and enter the amount in box 18.5

See section ‘Claims Made Outside a Return’ (SAM114000onwards)

Top of page

3.94, 3L.92 or 4.23

A tick in box 3.94, 3L.92 or 4.23 indicates that no Class 4 NIC is to be charged on this source or any other self-employment, partner or Lloyds Underwriter income. If this box is ticked, all other NIC entries present on the return are ignored; no Class 4 NIC is charged.

Top of page

3.95, 3L.93 or 4.24

A tick in box 3.95, 3L.93 or 4.24 indicates that the taxpayer has been granted deferment by NICO. If this box is ticked, all profits from this source (plus any other self-employment, partner or Lloyds Underwriter income) above the Class 4 NIC lower profits are charged at the 1% rate.

Top of page

3.96, 3L.94 or 4.25

A tick in box 3.96, 3L.94 or 4.25 indicates that there are adjustments that reduce the amount of Class 4 NIC payable. All adjustments subtract from the profit chargeable to Class 4 NIC and are returned as a single amalgamated figure. Helpsheet IR220 should be used if the taxpayer has more than one business.

(This text has been withheld because of exemptions in the Freedom of Information Act 2000)

Top of page

3.98

If there is an entry in box 3.98

  • Add the amount to any entry in box 3.97 and enter the total figure in box 3.97 on screen

Top of page

3L.86

In a Revenue case if there is an entry in box 3L.86

  • Calculate the adjustment and enter the amount in box 18.5

Note: In a self calculation case you should capture the taxpayer’s box 18.5 entry as normal

Top of page

4.1

A partnership UTR will not exist for a foreign partnership that has no profits arising in the UK.

Where the taxpayer is a partner of a foreign partnership that has no profits arising in the UK

  • Enter 9999999999 in box 4.1

Top of page

4.4

Following capture of the return a work item is created if box 4.4 is completed. When you capture the return

  • Use a Customer Service Message to advise the taxpayer that you will review the payments on account for the following year as soon as possible

Top of page

4.16

If Revenue Calculation case

  • Calculate the relief and enter the amount in box 18.5

See section ‘Claims Made Outside a Return’ (SAM114000 onwards)

Note: In a Self Calculation case you should capture the taxpayer's box 18.5 entry as normal.

Top of page

4.62

If Revenue Calculation case

  • Calculate the relief and enter the amount in box 18.5

See section ‘Claims Made Outside a Return’ (SAM114000 onwards)

Note: In a Self Calculation case you should capture the taxpayer's box 18.5 entry as normal.

Top of page

4.75A

If there is an entry in box 4.75A

  • Add the amount to any entry made in box 4.75 and enter the total figure in box 4.75 on screen

Top of page

5.17

If Revenue Calculation case

  • Calculate the relief and enter the amount in box 18.5

See section ‘Claims Made Outside a Return’ (SAM114000 onwards)

Note: In a Self Calculation case you should capture the taxpayer's box 18.5 entry as normal.

Top of page

6.9 and / or 6.10

If Revenue Calculation case

  • Calculate the tax credit relief due from all entries and enter the amount in box 6.9 and/or box 6.10

If double taxation relief is due and allowances and reliefs can be given in a more beneficial way

  • Abort capture

See subject ‘Computer Calculation is Incorrect’ (SAM121420)

Top of page

Question 7

If a claim is made for relief due under Section 699 ICTA 1988 (from higher rate tax for Inheritance Tax on accrued income from certain estates from deceased persons)

  • Abort capture

See subject ‘Computer Calculation is Incorrect’ (SAM121420)

Top of page

8.U, 8.L or 8.O

Where there is an entry in any of these boxes, relating to transactions entered on pages CG2 and CG3, the taxpayer must provide additional information in respect of each individual transaction on pages CG4, CG5 and CG6.

If there is an entry in these boxes but the additional information is not supplied

  • Enter the figures from the return in boxes 8.U, 8.L or 8.O
  • Note the omission of the additional information and set a Potential Selection for Enquiry signal
  • Review for the opening of a Section 9A enquiry

Top of page

8.12

If Revenue Calculation case

  • Calculate the relief and enter the amount in box 18.5

See section ‘Claims Made Outside a Return’ (SAM114000 onwards)

Note: In a Self Calculation case you should capture the taxpayer's box 18.5 entry as normal.

Top of page

8.13B

If Revenue Calculation case

  • Calculate the relief and enter the amount in box 18.5

See section ‘Claims Made Outside a Return’ (SAM114000 onwards)

Note: In a Self Calculation case you should capture the taxpayer's box 18.5 entry as normal.

Top of page

Computer displays Top Slicing Relief box

If there is an entry in box 12.2, 12.5, 12.8 or 6.8 and there is more than one gain

  • Calculate gains over years and enter in box

If there is an entry in box 12.2, 12.5, 12.8 or 6.8 and only one gain or cluster of gains

  • Leave blank