SAM125161 - Returns: returns work lists: w049 short tax return rejections (Action Guide)

Where there is an entry on the ‘Short Tax Return Rejections’ work list, follow steps 1 - 39 below.

The Action Guide is presented as follows

Initial action - all cases Steps 1 - 8
Return contains error messages Steps 9 - 13
Credibility check Steps 14 - 34
PAYE underpayment figures missing Steps 35 - 37
Final action Steps 38-39

Initial action - all cases

Steps 1 - 8 should be followed in every case

1. In function WORK LIST CASES
 
  • Select the entry that you want to work
 
  • Select the [View] button. You will be taken to function SELECTED CASE, to see all available details on the work item
 
  • Make a note of details, if required
2. If the case has not been worked within 60 days and the part-captured details are no longer available from the work list
 
  • Access function VIEW RETURN and print a copy of the scanned image
 
  • Use function LOG RETURN to re-log and batch the printed copy of the scanned image so that a batch identifier is created for this printed version of the scanned image
 
  • On the following day, capture the return following the instructions below, making repairs where appropriate
3. Use PAYE Service function IABD (Income, Allowances, Benefits and Deductions) Summary to check that the correct entry of National Insurance Benefits has been made in the relevant boxes at Question 4 (boxes 4.3, 4.5 and 4.6)
4. Use function CAPTURE RETURN repair the relevant entry if the entry is missing or incorrect and the amount is not within the guidelines, that is, greater than the HMRC figure or less than £150 below the HMRC figure
5. Check that a BACS repayment can be made using the information given (unless box 12.6C has already been ticked during part capture to indicate that any repayment will automatically be issued to the taxpayer)
6. Where you identify a potential BACS failure, such as where the account number is incomplete
 
  • Remove bank / building society details from the SA200 part capture screens. Note: Tab off the last box entry before proceeding with the next action
 
  • Select ‘Transform to Main’, either using the button (depicted by a paperclip) or from the ‘File’ menu bar heading. This option will convert data on Short Tax Return (SA200) capture screens into those applicable to a Main Tax Return (SA100)
 
  • Enter a tick in box 9 of the Finishing your Tax Return section, page TR 5 of the SA100 to ensure a cheque is issued automatically to the taxpayer
7. Where you identify a potential charity repayment failure, such as an invalid charity code, and there are no entries at box 12.1 to 12.6
 
  • Remove all charity repayment details in boxes 12.7 to 12.10 from the SA200 part capture screens. Note: Tab off the last box entry before proceeding with the next action
 
  • Select ‘Transform to Main’, either using the button (depicted by a paperclip) or from the ‘File’ menu bar heading. This option will convert data on Short Tax Return (SA200) capture screens into those applicable to a Main Tax Return (SA100)
 
  • Enter a tick in box 9 of the Finishing your Tax Return section, page TR 5 of the SA100 to ensure a cheque is issued automatically to the taxpayer
8.
  • Where boxes 2.61A and 2.61B contain an entry (including £0.00), review the figures. Use the instructions in the STR Capture Operators Guide for the year of the return. Note: Changing entries in 2.6A and/ or 2.6B are not repairs and should be treated as a correction to obvious errors
    		•

    Top of page

    Return contains error messages

    9. In function CAPTURE RETURN, select the [Calculation] button
      Where you are directed to a specific box
    10. Deal with each error message in turn as necessary
    11. Where the error message ‘You must view the Short Return image before correcting this error’ is displayed
     
    • Compare every box on the scanned image with boxes on the part-captured return and make corrections, not repairs, as necessary
    12. If the error message cannot be dealt with and the return is found to be unsatisfactory, follow the guidance at subject ‘Individual Returns: unsatisfactory individual returns’ (SAM121260)
    13. Fully capture the return and retain any printed copy of the scanned image together with other returns in the same batch

    Top of page

    Credibility check

    14. In function CAPTURE RETURN, select ‘Full Capture’ to display the warning message
    15. Select the [Check Return] button to return to capture screens
    16. View the scanned image and ensure that all information entered is the same as that shown on the return. (To view the scanned image follow the guidance at Returns: returns processed by HMRC Netherton: introduction (SAM127001)
    17. Reconcile any differences where the taxpayer or agent has provided their own calculation in supplementary information
      If steps 15 - 17 do not reveal any capture errors have been made
    18. Select the [View Calculation] button to check the calculation
    19. Attempt to reconcile why the large liability / overpayment arises. (Selecting the [Check Return] button will return you to capture screens to assist in reconciliation). Note: Excessive time should not be spent on reconciliation where the answer is not easily identifiable from the return and any supplementary information enclosed with it. No contact should be made with the taxpayer / agent, and no other action taken which may prejudice any potential Section 9A enquiry 
     

    Where the overpayment / liability can be reconciled and the tax position is considered satisfactory as a result
    20. Select the [Checks Completed] button
    21. Enter a tick in the box on the subsequent confirmation screen
    22. Fully capture the return. Note: The [Checks Completed] button will not be available until the calculation has been viewed by selecting the [View Calculation] button. This also applies where changes are made following the warning and full capture is again attempted
    23. Retain any printed copy of the scanned image together with other returns in the same batch 
     

    Where the overpayment / liability cannot be reconciled and the tax position is not considered satisfactory
    24. Select the [Check Return] button to return to capture screens
    25. Part capture the return
    26. Refer the case to your line manager 
     

    Line manager’s review
      If the overpayment / liability can be reconciled and the tax position is considered satisfactory
    27. Select the [Checks Completed] button
    38. Enter a tick in the box on the subsequent confirmation screen
    29. Fully capture the return
    30. Retain any printed copy of the scanned image together with other returns in the same batch 
     

    If the overpayment / liability still cannot be reconciled and the tax position is not considered satisfactory
    31. Select the [Checks Completed] button
    32. Enter a tick in the box on the subsequent confirmation screen
    33. Fully capture the return
    34. Retain any printed copy of the scanned image together with other returns in the same batch

    Top of page

    PAYE underpayment figures missing

    35. Access PAYE Service Function ACCOUNTING and/or TAX CODING to check the entries for 2.6A and 2.6B
    36. Establish any previous year’s underpayment coded for the SA year and enter the figure in box 2.6A. Where there is no amount enter 0 (zero). The HMRC figure should always be used
    37. Establish any estimated underpayment arising in the previous year which is coded in the current year, and enter the figure in box 2.6B. Where there is no amount enter 0 (zero). The HMRC figure should always be used
     
    • Enter the details and fully capture the return. Making entries in 2.6A and/or 2.6B are not repairs and should be treated as a correction to obvious errors

    Top of page

    Final action

    38. Check the PAYE Service / Individual / Indicators to confirm the Live SA box is ticked. If not, make a full Contact History note stating the first SA year and the UTR
    39. Retain any printed copy of the scanned image together with other returns in the same batch

    Home | Main Contents | Manual Contents
    Previous Page | Next Page | Top | Menu