SAM124063 - Returns: view and amend return: repairs to amended returns after 31 December (individuals) (Action Guide)

Follow steps 1 - 47 below if you are processing an amended Individuals return

  • After 31 December following the end of the return year

And 

  • A repair(s) is identified which would increase the taxpayer’s liability(This text has been withheld because of exemptions in the Freedom of Information Act 2000) 

And 

  • No repayment is due

Note: A Tax Calculation must be issued in all Revenue Calculation cases and in cases where a taxpayer who originally self calculated has sent an amendment and has not done a full recalculation. In such a case you should remove the tick in the Self - Calc box in LDC to ensure a Tax Calculation is issued. For the purposes of this Action Guide the words ‘......in a Revenue Calculation case’ should be read as relating to both circumstances.

Note: For composite returns for non-resident partners, see SAM121410.

For details of how to access the SA functions, select ‘Index Of Functions’ on the left of the screen.

This guide is presented as follows

The amendment can be processed using function AMEND RETURN Steps 1 - 6
Bankruptcy cases, where the liability is entered using function CREATE RETURN CHARGE Steps 7 - 25
Computer calculation is incorrect when using function AMEND RETURN. Liability to be entered using function CREATE RETURN CHARGE Steps 26 - 38
Computer cannot calculate liability, manual calculation required and liability is to be entered on the taxpayer record by using function CREATE RETURN CHARGE Steps 39 - 47

The amendment can be processed using function AMEND RETURN

1. Enter the return details in function AMEND RETURN without making any repairs
2. Over-ride error messages displayed whilst entering the taxpayer’s amendment and accept the taxpayer’s figure(s) (SAM121265)
3. Include a Customer Service Message (SAM121435) to tell the taxpayer that you have identified an entry or entries that require revision and that you will deal with the revision(s) as soon as possible, where
 
  • The taxpayer has requested Revenue Calculation
     
    Or
 
  • A taxpayer who originally self calculated has sent an amendment and has not done a full recalculation. In such a cases you should remove the tick in the Self - Calc box in LDC to ensure a Tax Calculation is issued
  Then, the following day or next available day
4. Use function AMEND RETURN to enter the figures following repair. Do not select repair messages or enter Customer Service Messages
5. Select Close and Exit from the File menu heading when you are sure all changes necessary have been made. You will be presented with the SAVE AMENDMENT screen
6. Save the changes as follows
 
  • Select the [Save] button. You will be presented with the SAVE AMENDED RETURN screen for each part of the return you have changed
 
  • Select the Correction radio button for each change made to the return. When you have completed the SAVE AMENDED RETURN screen for all of the return changes select the [OK] button, you will automatically be returned to the menu

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Bankruptcy cases, where the liability is entered using function CREATE RETURN CHARGE

7. Use function VIEW TAXPAYER DESIGNATORY DETAILS to obtain the Relevant Date and to ensure that the Last SA Return Required For Year Ending 5th April signal is set to the year of the return on the old record
8. Calculate the amended liability of the taxpayer for the periods to and from the Relevant Date by apportioning the income, allowances and reliefs without taking into account any adjustment due to a repair 
9. Where you do not intend dealing with the repair(s) for at least 3 days
 
  • Prepare a manual Tax Calculation for the period 6 April to the Relevant Date for issue in a Revenue Calculation case. Include a Customer Service Message (SAM121435) stating that you have identified an entry or entries that require revision and that you will deal with the revision(s) as soon as possible
10. Use function CREATE RETURN CHARGE to enter the liability for the period 6 April to the Relevant Date on to the taxpayer’s old SA record
11. Issue the Tax Calculation prepared in a Revenue Calculation case to the person set up to act in a capacity for the taxpayer
12. Prepare a manual Tax Calculation for the period from the Relevant Date to the 5 April for issue in a Revenue Calculation case. Include a Customer Service Message stating that you have identified an entry or entries that require revision and that you will deal with the revision(s) as soon as possible
13. Use function CREATE RETURN CHARGE to enter the liability for the period from the Relevant Date to 5 April on to the taxpayer’s new SA record. To do this
  Where more than 80 per cent of the total liability for the return year is satisfied by tax deducted at source
 
  • Enter the whole amount of the liability for the period from the Relevant Date in the Underpayments for earlier years field
 
  • Enter 0 (zero) in all the other amount fields with one exception. Where an in-year repayment has been made for the period from the Relevant Date, enter the amount of that repayment in the Tax already refunded field
  In all other cases
 
  • Increase the entry in the Income tax due after reliefs field by the appropriate amount of the pre Relevant Date liability (SAM121272)
     
    And
 
    • Increase the entry in the Overpayments for earlier years field by the appropriate amount of the pre Relevant Date liability
  Where, exceptionally the appropriate amount of the pre Relevant Date liability is negative
 
  • Treat the amount as positive and increase the entry in the Tax deducted at source field by the amount
     
    And
 
  • Treat the amount as positive and increase the entry in the Underpayments for earlier years field by the amount
14. Issue the manual Tax Calculation prepared in a Revenue Calculation case to the taxpayer together with a copy to the agent where form 64-8 is held
15. Calculate the taxpayer’s revised liability to and from the Relevant Date, taking into account the repaired amount(s)
16. The following day use function CREATE RETURN CHARGE to enter the revised liability on both the old and new records. (Remember to make the additional entries on the new record in respect of the appropriate amount of the pre Relevant Date liability)
17. Prepare and issue revised (original in Self Calculating cases) manual Tax Calculations including the Revision Notice
18. Where applicable carry out the Coding (Integrity) Check and record the result on the return. You cannot record the result on the computer as the return details have not been captured
19. Use function AMEND TAXPAYER SIGNALS to unset the Manual return signal on the new record
20. Update the taxpayer’s return profile on the new record with details of any new supplementary pages the taxpayer has returned using function MAINTAIN RETURN PROFILE
21. Where applicable set Mandatory Review for Possible Enquiry signal (SAM121595) on the taxpayer’s new record using function ADD / AMEND ANNUAL COMPLIANCE DETAILS and select a reason for setting the signal from the drop down menu
22 Enter additional reasons for setting the signal where more than one reason applies in the Review Notes field
23 Check the amended return along with the taxpayer’s new SA record where the amendment relates to any of the following 7 situations. Where the taxpayer has made a claim to reduce payments on account see section ‘Claim to adjust payments on account’ (SAM1000 onwards)
 
  • Select ‘Action 1’ and so on, in the right hand column to find out the actions you need to take in each situation

Situation Action
LU (Liability Unlikely) set on the record and as a result of the amendment Tax and / or Class 4 NIC liability arises Action 1 (Word 32kb)
The amendment is of a date a business ceased not previously notified (SA100 box 7 on the Self Employment (full) supplementary page SEF 1 or box 6 on the Self Employment (short) supplementary page SES 1, SA200 box 3.3) Action 2 (Word 34kb)
The amendment is of a date the taxpayer ceased to be a partner in a business not previously shown (box 4 on the Partnership (full) supplementary page PF 1 and on the Partnership (short) supplementary page PS 1) Action 3 (Word 45kb)
The amendment involves the taxpayer transferring surplus allowances to the spouse or civil partner (box 14 of the Tax reliefs section of the core return page TR 4, and box 11 of the Age related married couples allowance section of the Additional information page Ai 3) Action 4 (Word 32kb)
The amendment is to notify a new pension has commenced. No action is required for 2001-02 and later as the taxpayer is not required to show details on their return. Action 5 (Word 48kb)
An underpayment of less than £2000.00 arises and the taxpayer has not entered an ‘X’ in the box on the original or amended return to show that the underpayment is not to be coded (SA100 box 2 of the Finishing your Tax Return section of the core return page TR 5, SA200 box 12.12) Action 6 (Word 47kb)
Following the amendment the case has now failed the Coding (Integrity) Check Action 7 (Word 31kb)

  Creating payments on account where the taxpayer continues to trade in the same trade post 6 April following the Relevant Date
  Following amendment of the return for the year of VA or BY on the old record
24. Calculate the payments on account due for the following year on the new record
25. Use function CREATE RETURN CHARGE on the new record for the VA or BY year to enter
 
  • The calculated amount in the Income tax due after reliefs field
     
    And 
 
  • The calculated amount in the overpayments for earlier years field

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Computer calculation is incorrect when using function AMEND RETURN. Liability to be entered using function CREATE RETURN CHARGE

26. Abort function AMEND RETURN
27. Calculate the taxpayer’s liability manually without taking into account any adjustment(s) due to a repair. You may want to use the working sheet within the return guidance notes to achieve this
28. Where you do not propose dealing with the repairs within the next 3 days
 
  • Prepare a manual Tax Calculation for issue in a Revenue Calculation case and include a Customer Service Message (SAM121435) to tell the taxpayer that you have identified an entry or entries that require revision and that you will deal with the revision(s)(s) as soon as possible
29. Use function CREATE RETURN CHARGE to enter the liability
  Note: A Section 135(5)(a) deduction may be due.
  The Share Scheme supplementary pages deal with the taxable amount arising on the grant of a share option. A liability will only arise on the grant of an option under an unapproved share option scheme, and only if
 
  • The option can be exercised more than seven years after the date it was granted
     
    And 
 
  • The option price is less than the market value of the shares on the date of grant
  The charge arises in accordance with the provisions of S135(2) ICTA (the measure of the charge in accordance with S135(5)(b) ICTA).
  In accordance with S135(5)(a), the tax charged on the grant of the option shall be deducted from any tax chargeable on the exercise, assignment or release of the option. Where the tax charged on the grant of the option exceeds the tax chargeable on the exercise of that option, the deduction is restricted to the tax chargeable on the exercise of the option.
  If a Section 135(5)(a) deduction is due (given in terms of tax) you must
 
  • Calculate the amount to be entered in the Income tax due after reliefs field
 
    • For years up to and including 1998-99 the equivalent of box W47, G64 or L69 on the working sheet
 
    • For 1999-00 the equivalent of box C11.43 on the working sheet
 
    • For 2000-01 the equivalent of box c7.52 or w71 on the working sheet
 
    • For 2001-02 the equivalent of box c7.47 or w72 on the working sheet
 
    • For 2002-03 the equivalent of box c7.49 or w74 on the working sheet
 
    • For 2003-04 the equivalent of box c7.47 or w72 on the working sheet
 
    • For 2004-05 and 2005-06 the equivalent of box c7.49 or w74 on the working sheet
 
    • For 2006-07 the equivalent of (boxes c7.49 + c7.54 + c7.55) or w74 on the working sheet
 
    • For 2007-08 the equivalent of boxes A208 + A213
 
  • Reduce that amount by the S135(5)(a) deduction
 
  • Enter the result in the Income tax due after reliefs field
 
  • Complete any other appropriate fields on the screen
30. Issue the manual Tax Calculation to the taxpayer together with a copy to the agent where form 64-8 is held
31. Calculate the taxpayer’s revised liability taking into account the repairs and prepare a revised (possibly original in Self Calculating cases) manual Tax Calculation including Revision Notice for issue
32. The following day use function CREATE RETURN CHARGE to enter the revised liability. (Remember to reduce the amount in the Income tax due after reliefs field by the S135(5)(a) deduction)
33. Issue the revised (original) manual Tax Calculation
34. Carry out the Coding (Integrity) Check if applicable and record the result on the return. You cannot record the result on the computer as the return details have not been captured
35. Update the taxpayer’s return profile with details any new supplementary pages the taxpayer has returned using function MAINTAIN RETURN PROFILE
36. Where applicable set Mandatory Review for Possible Enquiry signal (SAM121595) on the taxpayer record using function ADD / AMEND ANNUAL COMPLIANCE DETAILS and select a reason for setting the signal from the drop down menu
37. Enter additional reasons for setting the signal where more than one reason applies in the Review Notes field
38. Check the amended return along with the taxpayer’s record where the amendment relates to any of the following 7 situations. Where the taxpayer has made a claim to reduce payments on account see section ‘Claim to adjust payments on account’ (SAM1000 onwards)
 
  • Select ‘Action 1’ and so on, in the right hand column to find out the actions you need to take in each situation

Situation Action
LU (Liability Unlikely) set on the record and the amended return shows Tax and / or Class 4 NIC liability Action 1 (Word 32kb)
Date of cessation of a business shown on the return (SA100 box 7 on the Self Employment (full) supplementary page SEF 1 or box 6 on the Self Employment (short) supplementary page SES 1, SA200 box 3.3) Action 2 (Word 34kb)
Date taxpayer ceased to be a partner in a business shown on the return (box 4 on the Partnership (full) supplementary page PF 1 and on the Partnership (short) supplementary page PS 1) Action 3 (Word 45kb)
Taxpayer wants to transfer surplus allowances to the spouse or civil partner (box 14 of the Tax reliefs section of the core return page TR 4, and box 11 of the Age related married couples allowance section of the Additional information page Ai 3) Action 4 (Word 32kb)
A new pension has commenced. No action is required for 2001-02 and later as the taxpayer is not required to show details on their return. Action 5 (Word 48kb)
An underpayment of less than £2000.00 arises and the taxpayer has not entered an ‘X’ in the box on the return to show that the underpayment is not to be coded (SA100 box 2 of the Finishing your Tax Return section of the core return page TR 5, SA200 box 12.12) Action 6 (Word 47kb)
The case has failed the Coding (Integrity) Check Action 7 (Word 31kb)

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Computer cannot calculate liability, manual calculation required and liability is to be entered on the taxpayer record by using function CREATE RETURN CHARGE

39. Calculate the taxpayer’s liability using the taxpayer’s figures. There is a calculation guide you may want to use for taxpayers with Capital gains and Life assurance gains and / or Lump sum compensation payments chargeable under Section 148 ICTA 1988. There are no calculation guides for other (rare) combinations
40. Use function CREATE RETURN CHARGE to enter the liability on the taxpayer’s SA record
41. Where you do not propose to deal with the repairs within the next 3 days
  Prepare and issue a manual Tax Calculation in a Revenue Calculation case to the taxpayer together with a copy to the agent where form 64-8 is held. Include a Customer Service Message (SAM121435) stating that you have identified an entry or entries that require revision and that you will deal with the revision(s) as soon as possible
42. Use function AMEND RETURN to enter the taxpayer’s return details, and make the relevant repairs
43. Obtain a copy of the abbreviated reasons for repair(s) made during amendment by using the Copy option from the Edit menu heading on the ALL REPAIRS FOR THIS RETURN screen and copying the details into a separate file
44. Calculate the taxpayer’s revised liability
45. Use CREATE RETURN CHARGE to enter the taxpayer’s revised liability
46. Prepare and issue a revised manual Tax Calculation together with a Revision Notice and any Customer Service Messages you want to make
47. File the return away

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