SAM31020 - Compliance: enquiry work: opening an enquiry

The Enquiry Manual contains full details about opening an enquiry.

The CQI Workbench provides computer support for S9A and S12AC enquiries.

Computer support is not available for enquiries made into claims outside a return. For details about such enquiries refer to the Enquiry Manual. An enquiry made into claim outside a return should, however, be noted on the SA record by using

  • Function ADD / AMEND ANNUAL COMPLIANCE DETAILS for the year of the claim to note in the Review Notes field that an enquiry has been carried out into the claim. If an enquiry is subsequently opened into the return containing the claim the note will ensure the Enquiry Officer is aware that an enquiry has already been carried out on this aspect. You cannot open a second enquiry into the same claim, if it is subsequently included in a return, unless you can raise queries under the discovery provisions

More information is available for each of the following subjects

Enquiry window 2006-07 and earlier
Enquiry window 2007-08 onwards
Enquiry window expired
S9A enquiry on partners
Student Loan Cases
Enquiry cases: Relevant papers
Register an enquiry on the CQI Workbench
Enquiry status / Automatic Move status / No Repayment signal

Enquiry window 2006-07 and earlier

If a return is received (or an amendment is made to it) on or before the filing date an enquiry can be opened into it at any time within the 12 months from the filing date. For 2001-02 and later returns with a filing date of 31 January, the last date for enquiry is 31 January of the following year. For return years up to and including 2000-01 where the filing date was 31 January, the last date for enquiry was 30 January of the following year.

Example 1

Filing date for a 2006-07 return is 31/01/2008.

Return is filed on or before this date.

The enquiry window runs to 31/01/2009.

If the return is received after the filing date, the enquiry window is extended. The enquiry window will in these cases remain open until the quarter date next following the first anniversary of the date on which the return was received.

If you receive an amendment to the return after the filing date, you have until the quarter date next following the first anniversary of the date on which the amendment was made to make an enquiry into that amendment.

Example 2

Filing date for a 2006-07 return is 31/01/2008.

Return is filed on 10/02/2008.

The enquiry window runs to 12 months after the end of the next quarter date, that is, in this example the enquiry window ends on 30/04/2009.

Example 3

Filing date for a 2000-01 return is 31/01/2002.

Return is filed on or before this date.

The enquiry window runs to 30/01/2003.

A taxpayer can amend his / her return in the 12 months from the filing date. Where there is an open enquiry into the return for that year, the taxpayer can still make an amendment within the 12 months from the filing date. However, the amendment has no effect on the return until the enquiry is complete.

Note:

For an enquiry to be valid, the opening letter for a S9A (or S12AC) enquiry must be received by the taxpayer (or nominated partner) by the end of this enquiry window.

Unless evidence is provided as to the date of receipt of the opening letter, you should assume that

  • If it is posted second class, it is received 4 working days after you post it
  • If it is posted first class, it is received 2 working days after you post it

For example, if you post an opening letter on Friday by second class post, you should assume it is received on the following Thursday (assuming no public holidays in the meantime).

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Enquiry window 2007-08 onwards

If a return is received (or an amendment is made to it) on or before the filing date, an enquiry can be opened into the return at any time within the 12 months from the date the return was received. From 2007-08, the filing date is

  • 31 October next following the tax year end, for returns filed on paper
Or
  • 31 January next following the tax year end, for returns filed online

Example 1

The filing date for a 2007-08 paper return is 31/10/2008. Where a return is filed on 17/08/2008, the enquiry window runs to 17/08/2009.

If the paper return is received (or an amendment is made to it) after the filing date, the enquiry window is extended. The enquiry window will in these cases remain open until the quarter date next following the first anniversary of the date on which the return was received or the amendment was made.

Example 2

The filing date for a 2007-08 paper return is 31/10/2008. Where a return is filed on 10/12/2008, the enquiry window runs to 12 months after the end of the next quarter date, that is 31/01/2010.

Example 3

The filing date for a Notice to Complete a Tax Return for 2007-08 is 31/01/2009. Where an online return is filed on 17/01/2009, the enquiry window runs to 17/01/2010.

If an online return is received (or an amendment made to it) after the filing date, the enquiry window is extended. The enquiry window will in these cases remain open until the quarter date next following the first anniversary of the date on which the return was received or the amendment was made.

Example 4

The filing date for a Notice to Complete a Tax Return for 2007-08 is 31/01/2009. Where an online return is filed on 10/02/2009, the enquiry window runs to 12 months after the end of the next quarter date, that is 30/04/2010.

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Enquiry window expired

An enquiry cannot be opened into a return or amendment to the return if either

  • The return or, as appropriate, the amendment has already been the subject of an enquiry
Or
  • The enquiry window has expired

In the above situation you may be able to take action under the discovery provisions. For further information see the Enquiry Manual, and the subject 'Discovery' (SAM31050).

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S9A enquiry on partners

Prior to issuing a formal notice of your intention to open a S9A enquiry into a partner’s return (or amendment to the partner’s return) in respect of non-partnership income, you must first ask the office with technical responsibility for the partnership SA record for consent to open the enquiry.

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Student Loan Cases

Where the taxpayer is liable to make Student Loan repayments through SA, the entry in the Student Loan Case field in function MAINTAIN RETURN SUMMARY should be 'Y'. Refer to the section 'Borrower Compliance' in the Collection of Student Loans (CSL) Manual which contains detailed information relevant to enquiries in these cases.

Where the Student Loan Case field is 'N' but you discover or suspect that the taxpayer is a borrower, you should follow the guidance in section 'Unmatched Records' in the CSL Manual.

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Enquiry cases: Relevant papers

If you are opening an enquiry, the Risk Team will provide you with a Standard Information Package (SIP) containing sufficient information to address the risk(s) identified.

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Register an enquiry on the CQI Workbench

In most cases, enquiry cases will be opened from entries on the Profile Work List, Mandatory Review List or Mandatory Enquiry List in CQI. If, exceptionally, it is necessary to open an enquiry on a case that is not yet on a CQI Work List, you will need to liaise with the Risk Team to remedy this.

There may be occasions where an enquiry is opened but it was not possible to send the case to the Work List on the CQI Workbench before the last date for enquiry. In these cases, an entry on the CQI Workbench should be created using CQI function CREATE ITSA DISCOVERY, with a record type of 'Other'. Follow the guidance in the Action Guide ‘Opening an enquiry: Using ITSA Discovery records' (SAM31021) when creating these records.

When you issue a notice of your intention to enquire into a return (or amendment to the return) you should use CQI Workbench function ENQUIRY DETAILS to register the opening of the enquiry. The function is used for

  • An individual, pension scheme or trust to register the opening of a S9A enquiry into the taxpayer’s return (or amendment to the return)
  • A partnership to register the opening of a S12AC enquiry into the partnership return (or amendment to the return). The opening of the S12AC enquiry is also recorded automatically on linked partners’ SA records (unless the partner is a company)

On using the function to open an enquiry, the following details of the enquiry must be entered

  • Enquiry type
  • Bus/Non-Bus
Business and Non-business relate to the type of enquiry being opened and not necessarily to the full information on the return.
For example, if you open an aspect enquiry into allowances, you would enter ‘Non-business’ even if the taxpayer was in business or had income from property.
'Business' covers those cases where the enquiry is about
    • Income arising from self employment
    • Or
    • Income from property
    • Note: Property income counts as business income for the purposes of segmentation
'Non-business' covers enquiries not falling into the categories above.
  • Segment type
  • Turnover (if ‘Business’ has been entered in the Bus/Non-Bus field)
  • Start date
The start date is the date of issue of the notice of your intention to enquire into the return (or amendment to the return). There is a statutory obligation to issue a notice under
    • S9A TMA 1970 for an enquiry into an individual’s, pension scheme’s or trust’s return (or amendment to the return)
    • S12AC TMA 1970 for an enquiry into a partnership return (or amendment to the return)
Note: Take care on entering the 'Start date' as this cannot be amended after completing the function. 'Bus/Non-Bus', 'Segment type' and 'Turnover' can only be amended by the Compliance Manager. Also, if the ‘Enquiry type’ is entered as ‘Full’ it cannot be amended later to ‘Aspect’ 

The enquiry type, start date and details identifying the case owner will be passed to the SA system overnight to update the SA record.

It is recommended that the following notes are also made on the SA record

  • In function AMEND TAXPAYER SIGNALS enter the name of the case owner, a contact telephone number and location (sufficient to allow post to be directed to the appropriate Enquiry Officer) in the Free Format Notes field. This information should be updated when necessary
  • In function MAINTAIN SA NOTES record the Enquiry Reference

After using function ENQUIRY DETAILS, any work items relating to the taxpayer for the year of enquiry are deleted from the following compliance Work Lists on the CQI Workbench

  • ‘Mandatory Enquiry’
  • ‘Mandatory Review’
  • ‘Profiles'
Note: Anywork items on the CQI Workbench for the partners are not deleted when a S12AC enquiry is opened on a linked partnership record

The case will also be placed on the Open Enquiries List in the CQI Workbench.

Whilst a S9A enquiry is open (or a S12AC enquiry is shown as open on a partner’s SA record) enquiry amendments needed to the individual’s, pension scheme’s or trust’s return are made for the year of enquiry using either

  • Function AMEND RETURN FOR ENQUIRY
Or
  • Function CREATE RETURN CHARGE FOR ENQUIRY

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Enquiry status / Automatic Move status / No Repayment signal

When the SA record is updated after you have used CQI Workbench function ENQUIRY DETAILS to register a S9A enquiry, the computer updates the enquiry status (SAM31080) on the SA record and sets

  • The Enquiry Case message in the most commonly used SA functions
The message 'Enquiry Case' indicates that there is, or has been, a S9A or S12AC enquiry.
This message will be displayed in functions most commonly used in day to day work.
These functions are
    • VIEW CASE SUMMARY
    • VIEW TAXPAYER DESIGNATORY DETAILS
    • MAINTAIN RETURN SUMMARY
    • MAINTAIN SA NOTES
    • VIEW STATEMENT
A S12AC enquiry into a partnership return will result in the message being displayed on the linked partners' records, even if S9A enquiries have not been opened into the partners' returns.
This message will remain on the SA record until the later of
    • One year after the filing date of the latest year under enquiry
    • Or
    • The settlement date of the last enquiry to be settled
  • Automatic Move (SAM31070) status to ‘N’
  • No Repayment signal to ‘Y’
Note: S59B(4A) TMA 1970 allows all or part of a repayment to be withheld in the period from opening an enquiry to issue of a closure notice

When the SA record is updated after you have used CQI Workbench function ENQUIRY DETAILS to register a S12AC enquiry, the computer updates the enquiry status and sets the Automatic Move status to ‘N’ on the partnership SA record. The computer also updates the enquiry status on the linked partners’ SA records for the relevant year unless

  • The partner’s SA record is already linked to an SA partnership record on which there is a open S12AC enquiry for the same year
  • The linked partner is a company

On updating the enquiry status on the partner’s SA record the computer also sets

  • The Enquiry Case message in the most commonly used SA functions
  • Automatic Move status to ‘N’
And
  • No Repayment signal to ‘Y’

Note: This does not apply where the enquiry record was set up using CQI Workbench function CREATE ITSA DISCOVERY. For these cases, you should follow the guidance in the Action Guide ‘Opening an enquiry: Using ITSA Discovery records' (SAM31021).

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