SAM101093 - Records: maintain taxpayer record: dormant records: re-activating a dormant record (Action Guide)

If you want to re-activate a dormant SA record, consider steps 1 - 13 below.

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

All cases

1. Review and update the taxpayer’s personal and if appropriate business details on the SA record. The subjects ‘Maintain company record’ (SAM101200), ‘Maintain individual record’ (SAM101210), ‘Maintain partnership record’ (SAM101230) and ‘Maintain trust record’ (SAM101260) include detailed advice
  Note: You should not reactivate a dormant non-resident company landlord record if the income as a landlord has ceased but the taxpayer needs to be brought into SA for other reasons. Instead, you must use function SET UP INDIVIDUAL TAXPAYER to set up a new record and use function MAINTAIN SA NOTES to record the existence of the UTR of the dormant record
2. Consider whether an ‘Entry’ letter (SA250) should be issued to the taxpayer. If you want to inhibit the automatic issue of the letter set the ‘SA Entry / Exit Letter Inhibited’ signal using function AMEND TAXPAYER SIGNALS
3. Requests by the taxpayer or authorised agent to remain in SA even though the SA criteria are not being met cannot be accepted. If SA criteria are no longer met the case cannot remain within SA
4. Where the record is re-activated because the taxpayer is a director you must
 
  • Set the Automatic Closure Inhibited signal in function AMEND TAXPAYER SIGNALS
 
  • Inhibit the issue of a ‘Welcome‘ letter (SA250) and issue SEES letter SA627
 

Note: Issue SEES letter SA627 only where the record was closed in error. For example, we held information that showed that SA criteria was satisfied but still closed the record and issued the ‘exit’ letter. Where the customers circumstances have changed since the record was closed, and he is now required to complete SA returns, the ‘Welcome’ letter (SA250) will be appropriate
 
  • Make a note of your actions on the SA record using function MAINTAIN SA NOTES
5. Where the record is re-activated after a new address has been traced for a taxpayer who was RLS
 
  • Where the return is outstanding and function CREATE RETURN CHARGE has been used in accordance with SAM101092 steps 2 and 3, because payments on account or a determination exist, unlog the charge using function MAINTAIN RETURN SUMMARY. This will bring the original payments on account or determination, back into charge. Note: This may not be possible if the year is no longer available in SA
6. Where the record is re-activated because the taxpayer has objected to non-PAYE income being included in the PAYE code but has been automatically refined out of SA following capture of the return, you must
 
  • Set the Automatic Closure Inhibited signal in function AMEND TAXPAYER SIGNALS
 
  • Inhibit the issue of a ‘Welcome‘ letter (SA250) and issue SEES letter SA627
 
  • Make a note of your actions on the SA record using function MAINTAIN SA NOTES
7. Delete the entry in the Last SA Return Required For Year Ending 5 April field in function AMEND TAXPAYER SIGNALS
  Note: Where you are re-activating a dormant record and the first SA year is not CY, you will need to wait 3 days for the Start Year to flow to the NPS record. You should then follow the guidance in the PAYE Manual at PAYE93034 to set the SA Start Year back to the appropriate year
8. Review the taxpayer’s return profile and amend as necessary, using function MAINTAIN RETURN PROFILE
9. If today’s date is after the automatic selection process for returns issue on 6 April next has run, or you need to issue a return for CY-1
 
  • Use function RECORD RETURN REQUEST to
 
    • Select the relevant year for automatic issue of a return
 
    • Indicate whether or not Failure to Notify applies in a CY-1 return case (at return capture, the system will set the relevant due date of the balancing payment and the following year’s payments on account, based on your selection in this field)
10. If you need to issue a return for an earlier year than CY-1
 
  • Prepare a return for manual issue
 
  • Use function RECORD DATE OF CLERICAL ISSUE to
 
    • Enter the date of issue on the SA record
 
    • Indicate whether or not Failure to Notify applies (at return capture, the system will set the relevant due date of the balancing payment and the following year’s payments on account, based on your selection in this field)
11. The SA record will automatically link to a PAYE record where one is known on the CID framework. Where there is a PAYE link, check if NPS has cleared the year for which you need to issue a return. If so, and a repayment has been made
 
  • Set the No Repayment signal
 
  • Make an SA note to state why the NR signal has been set
  Note: If an underpayment has arisen and has been coded, the customer should show this in box CAL8 on the return to account for it in the calculation when the return is processed
12. Where the year for which you want to re-activate the SA record immediately follows the last year for which there was SA liability, review the payments on account
 
  • Use function MAINTAIN PAYMENTS ON ACCOUNT to view the payments on account
 
  • If they have been reduced to nil, use function CREATE RETURN CHARGE, for that previous year, to restore the payments on account
13. Use function VIEW STATEMENT to check whether there are any remissions held on the record
 
  • If the advisory message ‘Please note there is a remission posted on this account’ is displayed
 
    • Send a WAM to ‘London North West Recovery’ Debt Management (DM) office to review the remission
 
Note: Do not contact the DM office if only type 5b or 10 remissions are present as these will not be cancelled
 
    • Make a note of your actions on the SA record using function MAINTAIN SA NOTES
 
  • If the advisory message, as above, is not displayed there are no remissions
 
    • You need take no further action

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