SAM121650 - Returns: individuals returns: when to use function create return charge
There are seven situations where the taxpayer’s liability should be calculated manually and the resulting liability entered on the taxpayer’s record by using function CREATE RETURN CHARGE.
The situations are where
| 1. | The number of sets of supplementary pages for income from any of Employment, Ministers of Religion, Self-employment or Lloyds Underwriters exceeds 50 |
| 2. | A part year return for the year of permanent cessation is received in the year of permanent cessation |
| 3. | There is a need to enter pre and post insolvency liabilities for a taxpayer for the same tax year |
| 4. | The automatic calculation would be incorrect |
| 5. | An Inspector has authorised a request not to capture the return details |
| 6. | A return has been issued in error |
| 7. | A return for an out-of-date year has been received within the relevant time limit but not captured on the Local Data Capture (LDC) computer system before the relevant annual April enhancements to LDC have been implemented |
Further action is then required as the computer will not automatically
- Update the taxpayer’s return profile
- Issue a Tax Calculation (Revenue calculation cases and self calculation cases where the return has been repaired)
- Create work items
- Make any repayment where claimed on the return
- Set Mandatory review signals
Further information is available for each of the situations in the following subjects
| Situation | Subject | Reference |
1 |
‘Computer calculation is incorrect’ | SAM121420 |
2 |
‘Permanent cessation cases’AndSection ‘Permanent Cessation’ in business area ‘Special Cases’ | SAM121510AndSAM90000 onwards |
3 |
‘Bankruptcy cases’AndSection ‘Bankruptcy’ in business area ‘Records’ | SAM121270AndSAM106000 onwards |
4 |
‘Computer calculation is incorrect’ | SAM121420 |
5 |
Follow the actions in subject ‘Computer calculation is incorrect’ | SAM121420 |
6 |
‘Capture of returns issued in error’ | SAM121310 |
7 |
‘Returns for out of date years’ | SAM121080 |
Note: When using function CREATE RETURN CHARGE or CREATE RETURN CHARGE FOR ENQUIRY on a case where
- The Last SA Return Required signal is set for the return year or earlier
And
- An amount was previously transferred to PAYE for that year
The case will not appear on the ‘Reduction of Amount Coded Out’ Work List or be automatically notified to PAYE and any reduction in the amount coded on PAYE must be recognised and dealt with manually.
