SAM120070 - Returns: return issue: new commencement cases
General
Manual preparation
Function Record Return Request
Late issue of return
General
When a case is set up a return is normally issued at the next annual bulk issue date. For example, business commenced 1 November 2008, case set up December 2008 - the first return will be issued automatically in April 2009. From November 2009, where a new SA record has been set up since 6 April 2009, the system will try to issue SA316 ‘Notice To Complete A Tax Return’ at both the bulk return issue (ITAR) and for any in-year returns request, where appropriate. See SAM120001 for more information.
Section ‘Set Up Taxpayer Record’ (SAM100000 onwards), contains advice on setting up an SA record. The taxpayer’s return profile will show details of the supplementary pages required following input of information on setting the record up. Where the information is not available, the taxpayer will be issued with the basic Main Tax Return (SA100) only.
Note: The decision that an individual taxpayer qualifies to receive a Short Tax Return (SA200) is made when the tax return for the previous year is captured. The first return issued must therefore be a Main Tax Return (SA100). On completion of capture of that return, the taxpayer’s Return Profile will be automatically updated to indicate that the SA200 is applicable.
Manual preparation
Where a return is required for CY-2 or earlier, at any time, it must be issued manually and the issue recorded using function RECORD DATE OF CLERICAL ISSUE. Note: A Short Tax Return (SA200) should not be issued in such cases.
If, on completing the return the taxpayer requires additional pages, the return directs the taxpayer to the Orderline. However, the Orderline only hold a supply of pages for CY-2 and later. If the return is for CY-3 or earlier, you must issue a covering letter with the return advising the taxpayer to obtain any additional pages required from the local office or by downloading them from the HMRC web site. If approached for additional pages, the local office should download the pages from the HMRC web site, print and issue them to the taxpayer.
When using function RECORD DATE OF CLERICAL ISSUE you must indicate whether or not Failure to Notify applies. As long as the taxpayer has notified HMRC of chargeability by 5 October following the end of the tax year you should select the reason as ‘Not Failure to Notify’.
Note: In a partnership case, the reason must always be ‘Not Failure to Notify’.
Function Record Return Request
Where a case is set up after the automatic selection process (known as ITAR) has begun, the case will not be selected for issue of a return at the next annual bulk issue date. However, cases can be selected at any time during a year for the automatic issue of a CY-1 return. This now includes cases selected for the automatic issue of an original return, for a year that will be CY-1 at the following 6 April, in the period between the annual selection process and the subsequent 5 April. The return will be issued as soon as possible after the end of the year, but after the annual bulk issue of returns selected for that year at the selection process.
Further information is available at subject ‘Requesting Automatic Issue Of Returns After ITAR’ (SAM120090).
When using function RECORD RETURN REQUEST you must indicate whether or not Failure to Notify applies. As long as the taxpayer has notified the Revenue of chargeability by 5 October following the end of the tax year you should select the reason as ‘Not Failure to Notify’.
Note: In a partnership case, the reason must always be ‘Not Failure to Notify’.
Late issue of return
The filing date and the due dates for the balancing payment is by concession 3 months and 7 days after the date of issue where
- A paper return is issued late, that is after 31 October following the end of the return year
- There has been no Failure to Notify chargeability, that is by 5 October following the end of the return year
When you use function RECORD RETURN REQUEST to issue a paper return or use function RECORD DATE OF CLERICAL ISSUE to record the date of issue of a return issued manually, you must indicate whether or not Failure to Notify applies.
Note: In a partnership case, you must always select ‘Not Failure To Notify’.
When the return is captured and / or a charge entered on the record, if the return was issued after 31 October following the end of the return year, the computer will automatically set the relevant date of the balancing payment for interest purposes to
- 31 January in a Failure to Notify case
- 3 months and 7 days after the date of issue of the return, if Failure to Notify does not apply
If Failure to Notify does not apply, the due dates of the payments on account for the current year will be set to the later of
- The standard due date for the payment on account
- The return due date
If you select the wrong entry in the Failure To Notify field when using function RECORD RETURN REQUEST or RECORD DATE OF CLERICAL ISSUE, provided the return has not been captured and / or there is no charge on the record, you can use function RECORD DATE OF CLERICAL ISSUE to correct the selection. At any time after a charge has been entered on the record, the only way to change the relevant due date for interest purposes for that year, is by use of function AMEND RELEVANT DATES.
