SAM100020 - Records: set up taxpayer record: PAYE cases that potentially need to be brought into SA
When the National Insurance and PAYE Service (NPS) carries out end of year reconciliation, where certain conditions are met and the SA indicator is not set, work item 117 (Potential SA case) is created. Guidance on how to deal with work item 117 is in the PAYE Manual (PAYE93058).
If you identify during day-to-day working a PAYE individual who fulfils SA criteria (SAM100050), the individual can be set up in SA and does not have to complete form SA1.
If the individual is in receipt of self employed income, you should
- Manually prepare a form CWF1 / SA400 / SA401 / SA402 (depending on if self employed or a partnership or partner) from the information held
- Clearly note the form ‘Constructed CWF1 / SA400 / SA401 / SA402 from information discovered during a review’
- Prepare a letter, addressed to the Central Agent Authorisation Team (CAAT) Longbenton on the following lines
‘Please find attached a constructed CWF1 / SA400 / SA401 / SA402 from the information discovered during a work item 117 review/day to day work. The customer commenced self employment and I have set the case up in SA. Please arrange to deal with the Class 2 NICs issues.’
- Send the manually prepared form CWF1 / SA400 / SA401 / SA402 and letter to CAAT
- Set the case up in SA
If the individual has failed to inform us of the self employment within 6 months after the end of the tax year in which the period of self employment commenced, you should additionally refer the case to the Hidden Economy Risk Team (HERT) as a Failure to Notify case.
Note: Before setting up a new SA record, always check that a dormant SA record does not exist and that all relevant years are reconciled on NPS.
