SAM001 - Glossary of terms

Glossary of terms

A B C D E F G H I J K L M N O P Q R S T U V W

A

Abroad

An address is not abroad if it is within the United Kingdom, Isle of Man or Channel Islands.

Accruing interest

Accruing interest is the amount of interest calculated

To ‘today’s date’ (or in the case of a created statement, to the statement date)
On any overdue interest bearing liability

No interest charge is created for an amount of accruing interest. An interest charge is only created when the related liability is paid in full.

From November 1999, a deminimis limit was introduced and accruing interest is not shown if it is below the limit.

Active responsibility

Based on the taxpayer’s details, the computer will decide which offices have responsibility for the four areas of Revenue activity. It will also recognise whether the responsibility is active or passive.

Processing responsibility is active from the point that the taxpayer’s SA record is set up. An office responsible for processing work will always have active responsibility.

Technical and recovery responsibility will be passive until an officer in the office responsible uses function MAINTAIN RESPONSIBLE OFFICE to

Transfer their responsibility for the taxpayer’s SA record, or
Change the Automatic Move status to ‘N’

Technical and recovery responsibility will also become active when a work item is allocated to the office responsible for that work.

Accounting responsibility will be treated as passive at all times, and when necessary will be transferred automatically.

Additional surcharge - (applies to tax years 2009-10 and earlier)

Where SA liability is still unpaid more than 6 months after the balancing payment due date a further surcharge will arise. This further or additional surcharge is equal to 5% of all the SA duty unpaid at that date.

Adjustment to a determination

HMRC has the power to make a determination where a taxpayer fails to file a return by the filing date. A determination is made to establish a liability for the year.

The determination cannot be appealed and is only displaced when a return is filed and a return charge is captured or created.

Any adjustments following a determination are shown on the taxpayer’s statement and where there are more than one, then these are summarised. The net sum is shown with ‘Type’ code ‘SDET’ along with the description ‘Net adjustments following YY/YY amendment’.

Advance payment

In SA, the taxpayer record can accept payment ahead of a charge and the payments held can exceed the total charge. The facility to make advance payments is one that can be easily accommodated under SA because the SA taxpayer record can hold an excess credit.

Taxpayers who foresee difficulties making payments on account in one amount, may suggest a series of smaller payments ahead of the due dates.

Any taxpayer who asks to make advance payments is to be provided with the means to make those payments. Spreading payment in this way helps taxpayers meet their payment obligations and they are to be offered every assistance.

Exceptionally, the office responsible for accounting activities or Local Office may identify a taxpayer they think is likely to benefit from paying in advance. The cases identified are likely to be taxpayers who have successfully concluded Time to Pay arrangements.

When discussing an advance payment scheme with the taxpayer it should be made clear that

The scheme is voluntary. The taxpayer decides the payment frequency and the amount of the payment
If payments under the scheme fall short of the amount becoming due, the balance must be paid by the due date to avoid late payment interest

Where a taxpayer expresses a wish to make advance payments, clerical payslips (form PS1(AZ) or PS1(BZ)) showing the Unique Taxpayer Reference (UTR) are to be issued and the taxpayer asked to

Pay by Bank Giro
Use Girobank, or
Send cheques to the office with accounting responsibility

Agent

The term ‘agent’ means an accountant, auditor, solicitor, group tax department or some other person or firm who

Prepares returns or accounts for a taxpayer, and / or
Advises or acts for the taxpayer in tax matters

The term does not include a person or body appointed to act for a taxpayer where the Taxes Acts require returns, assessments and other statutory notices to be served on that person or body.

For example, a trustee, administrator or executor.

Agent Identity

This is a unique code on the national agent file by which an agent is known to the computer. This code is entered on the taxpayer’s computer record instead of the name, address and telephone number of the agent concerned.

The code consists of

One letter, followed by four numbers, followed by one letter, for example C2716E or
Five numbers, followed by one letter, for example 30115A

Agent Maintainer

The Agent Maintainer is the person nominated for creating and maintaining agents records.

Alleged payments

A taxpayer may maintain an outstanding amount on a statement has been paid. It may be prudent to inhibit issue of subsequent statements until the payment has been traced, or it can be demonstrated that credit has not been received.

Allowable expenses

Allowable expenses are broadly those which

Had to be spent solely to earn the income
Were not spent for private or personal reasons
Were not spent to buy something which the taxpayer intends to keep for a while, for example a computer, (capital allowances may be due for this expense)

Amounts becoming due

The amounts becoming due are charges, including payments on account that are payable in the future. All recorded amounts becoming due are displayed.

Note: Only the amounts becoming due within the next 35 days are shown on the computer issued taxpayer statement.

Appeal

The following SA charges are subject to the right of appeal

Penalties (for tax years 2009-2010 and earlier)
Surcharge (for tax years 2009-2010 and earlier)
Late payment Penalties ( for tax years 2010-2011 onwards)
Late Filing Penalties (for tax years 2010-2011 onwards)
Revenue assessments
Revenue amendments to a return
Jeopardy amendments

A taxpayer also has the right of appeal against actions taken by HMRC that are not charge based, for example, a Revenue amendment of a partnership statement.

ARP

ARP stands for Automatic Remittance Processing.

The Accounts Offices within the Accounting & Payments Service have cheque and payslip ARP reader / sorter machines and a number of operator controlled ARP workstations for processing payments.

The speed of processing and of data capture from payslips and cheques allows high volumes of payments to be processed and banked on the day of receipt.

This ensures HMRC receives early value for the payments and that taxpayer records are updated without delay.

ARP archive system

The ARP archive system stores information about each bank lodgement payment, paper Bank Giro payment and Girobank payment processed through the automatic remittance processing (ARP) equipment.

An operator can search for a payment by entering a date or range of dates and an amount, reference number, bank account details or an ARP serial number.

Where a payment is traced the details are displayed along with payslip and, in the case of a bank lodgement payment, cheque images. A print can be taken of each payslip or cheque image.

Arrangement started

For a Time to Pay case the start date is the date payment proposals are first received from the taxpayer. This date is to be set even when initial proposals were unacceptable.

For all other cases the start date is the date the payment arrangement is entered on the SA record.

Ascending Value List

The ascending value list (AVL) is a daily list of payments arranged in ascending value.

The bank sends Banking Operations separate microfiche AVLs for payments received by

Bank Giro on Tape, and
BACS

Note: The AVL from automatic remittance processing (ARP) produced for all bank lodgement payments, paper Bank Giro payments and Girobank payments has been replaced by an ARP archive system.

Aspect enquiry

An aspect enquiry falls short of a full, in-depth examination of the whole return. Instead it concentrates on one or more aspects of it.

An aspect enquiry may develop into a full enquiry and the enquiry type may be amended accordingly.

Associated serial number

The associated serial number identifies each transaction on the taxpayer record.

It is made up of a

6 digit payment serial number in the case of a payment
9 character OAS reference in the OAS reference format CYY X99999 for a transfer ‘to’ OAS
2 digit repayment serial number for a repayment or cancelled repayment

And in every case the

6 digit numeral of the office or Organisation Unit responsible for the transaction

Authorised repayments

This status identifies a repayment which has been authorised for issue either

Clerically by the Repayment Authoriser, or
Automatically by the computer

Automatic move

Bulk transfers of taxpayer’s SA records will be carried out by Information Management Services.

The automatic move status will initially be set to ‘Y’ in respect of each type of Revenue activity allocated to a particular SA record. This will permit responsibility for that aspect of the record to be transferred to another office as part of a bulk transfer.

If you want to prevent the automatic transfer of your responsibility for a selected taxpayer, use function MAINTAIN RESPONSIBLE OFFICE to change the automatic move status to ‘N’.

Do not change the entry to ‘N’ without the authority of your manager.

If you have prevented the automatic move of your responsibility for a taxpayer record then, following a bulk transfer, the case will be included on a list of taxpayer records not transferred.

Automatic Payment Allocation

Payments and transfers from OAS, are automatically allocated to outstanding liabilities on the SA taxpayer record. The system uses rules to decide the order of allocation.

Automatic Remittance Processing

Banking Operations has a number of operator controlled ARP workstations for processing payments.

The speed of processing and of data capture from payslips and cheques allows high volumes of payments to be processed and banked on the day of receipt.

This ensures HMRC receives early value for the payments and that taxpayer records are updated without delay.

Automatic Selection Process

The automatic selection process (known as ITAR) is the annual selection by the computer of cases where a return is required for the year. The selection process is run during mid to late February. You will normally be informed each year when the process is due to begin.

Where a case set up after the process has run requires an SA return to be issued for the year, a request for automatic issue can still be made using Function RECORD RETURN REQUEST. 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..

Example

Assume ITAR selection is made late February 2009 to select 2008-2009 returns for issue at 6 April 2009.

From that date accessing Function RECORD RETURN REQUEST will give two options.

CY-1 - To issue a 2007-2008 return as soon as possible

CY - To issue a 2008-2009 return as soon as possible after 6 April 2009

Note: If a return has already been issued for the year in question, you will not be allowed to issue a further original return for that year.

Available amount

The available amount is the original credit amount less any amounts previously transferred to OAS, returned by the bank (returned payments) or repaid.

AVL

The ascending value list (AVL) is a daily list of payments arranged in ascending value.

The bank sends Banking Operations separate microfiche AVLs for payments received by

Bank Giro on Tape, and
BACS

Note: The AVL from automatic remittance processing (ARP) produced for all bank lodgement payments, paper Bank Giro payments and Girobank payments has been replaced by an ARP archive system.

Award of Sequestration (Scotland)

Award of sequestration is a legal process for dealing with individuals who are unable or unwilling to pay their debts. Sequestration orders are made by the Courts following presentation of a petition.

B

BACS

BACS is an automated service operated by banks and building societies for clearing payments. It avoids the need for handling cheques or cash when making payment.

BACS payments are transferred electronically into the HMRC account with Citi. The bank notifies Banking Operations of payments on magnetic tape.

For Sharefishermen accounts, BACS arranges for the accounts with the Bank of Scotland (SSF) or Barclays Bank (SVTSS) to be debited. At the same time a credit for the total amounts transferred is passed electronically to the HMRC account with Citi.

BACS recall

A BACS recall is received when a taxpayer reclaims the value of a BACS payment. The taxpayer’s request for payment to be returned is received from the HMRC bank.

Balancing charge

A Balancing charge will arise where the total of the net liability for the year is greater than the amounts of any payments on account based on the previous year’s liability.

The Balancing charge due date is normally 31 January following the end of the tax year.

Balancing charge credit

A balancing charge credit is created when a return is captured and the deductions at source exceed the SA liability for the year.

Balancing charge debit

The balancing charge debit is the balancing payment due by the taxpayer calculated when the return is captured.

Balancing payment

A balancing payment for this purpose is the total amount of liability from the return less any payments on account already made. The balancing payment can include the balance of any unpaid payments on account but does not include any interest or penalties.

Balancing payment due date

The balancing payment is normally due on 31 January after the end of the tax year.

A balancing payment due date is delayed where

The return is issued after 31 October following the tax year end, and there is no failure to notify, or
A return issued and submitted within the time limit for Revenue Calculation is captured late

The delayed due date is (the later of)

3 months and 7 days after return issue if the return was issued after 31 October
30 days after the amounts due are notified to the taxpayer if the return is captured late

Where a return is issued after 31 October, and there is no failure to notify, a delayed balancing payment due date is set automatically. The due dates of the payments on account for the following year will also be reviewed and, if necessary, amended automatically.

Where a return is captured late the balancing payment due date has to be amended manually. Where the balancing payment due date is amended manually, the due date(s) of the payment(s) on account for the following SA year must be reviewed and, if necessary, amended manually. Function AMEND RELEVANT DATES is used to amend a due date.

Bank Giro

Bank Giro is a credit transfer system that enables payment to be made through a bank branch. Each payment is credited to an HMRC Bank Giro account with the Royal Bank of Scotland Group. The target bank account is indicated on the payslip. Each account is associated with either the Banking Operations Shipley or Cumbernauld.

The Royal Bank of Scotland Group notifies Banking Operations Shipley or Cumbernauld of the credits received each day in each Bank Giro account. The credits are notified mainly on magnetic tape but a small proportion is notified on paper.

Banking Operations receipts reconciliation

Banking Operations regularly reconciles the receipts allocated with the bank lodgements and payments (including adjustments) notified by the bank. The reconciliation is carried out clerically on forms C3(Z) and C3Q(Z).

Banking Operations systems

Banking Operations is responsible for the following computer systems

ACT / ITCP (known as the F Masterfile)
BROCS
Corporation Tax (C Masterfile)
CT Pay and File
OAS system
Trading and other income (DCODA or D / E Masterfile)
Self Assessment

Bank lodgement adjustment (BLA)

When Banking Operations make a BLA, a credit or debit is posted on the taxpayer record. The amount of the adjustment is the difference between the

Actual value of any cheque (drawn in sterling) received by the bank, and
Amount (if any) posted on the taxpayer record (and normally claimed by the Accounts Office in the lodgement - see Note)

For example

If a cheque for £100 is processed as £1000, a BLA is posted for minus £900 (debit).

If a cheque for £500 is lodged but not processed (not posted to taxpayer record), a BLA is posted for plus £500 (credit).

Note: If Banking Operations withdraws a cheque and amends the bank lodgement forms after ARP processing is complete, then no amount is claimed in the lodgement.

Bankruptcy

Bankruptcy (Scotland, Award of Sequestration) is a legal process for dealing with individuals who are unable or unwilling to pay their debts. Bankruptcy orders are made by the Courts following presentation of a petition.

Bare trust

A trust where, legally, the beneficiaries have an immediate absolute title to all income, gains and capital and the trustees are not liable to pay any tax out of the trust income.

Base address

Individual

The taxpayer’s private address.

Trust

The address of the first named trustee.

(The main trustee is the one who requests statutory notices for the trust, such as returns to be served on him. In the absence of such a request it is any trustee who is a solicitor or accountant or, if no such trustee, the first named trustee.)

Partnership

The address from which the business is conducted or, where there are no business premises, the address of the first named partner.

Company

The company’s Registered Office.

Personal representative

The address of the personal representative.

Basis period

The basis period is the period used to identify the profits which are taxable in any particular year.

Normally the basis period is the 12 month period up to the annual accounting date.

Batch function

A batch function is an automatic process that runs overnight. It cannot be accessed online by an operator

Batch functions are used; for example, to update taxpayer records with data supplied by external systems, extract information, or produce output.

Batch process

A batch process is an automatic process that runs overnight. It cannot be accessed online by an operator.

Batch update

A batch update process is an automatic process that runs overnight. It cannot be accessed on-line by an operator.

Batch processes are used, for example, to update taxpayer records with data supplied by external systems, to extract information and to produce output.

BLA

Bank lodgement adjustment.

BROCS

BROCS stands for Business Review of the Collection Service.

Budget payment plan

A Budget Payment Plan is a facility to enable selected SA taxpayers to spread payment and help them meet their payment obligations. Under the plan the taxpayer makes regular quarterly or monthly payments.

The plan is voluntary and is designed to assist taxpayers who are likely to have difficulty making a payment on account in one amount.

Business address

The address of any business for which a trade has been set up on the SA record. If the taxpayer has more than one trade there may be several separate business addresses. More than one business can operate from the same address.

Business name

A business name is the name under which the taxpayer trades, if it is different to the name under which the SA record is held.

BY

BY (bankruptcy) is a legal process for dealing with individuals who are unable or unwilling to pay their debts. Bankruptcy orders are made by the Courts following presentation of a petition.

BY order

A bankruptcy (BY) order is made by the court when a debt(s) has not been paid and a voluntary arrangement (VA) is inappropriate.

C

Cancelled repayments

Each repayment and cancelled repayment on a taxpayer record is numbered. The 2-digit consecutive number used to identify repayments and cancelled repayments is called a repayment serial number.

The repayment serial number is only unique to the taxpayer record being viewed. To view the full repayment reference you need to use function VIEW REPAYMENT.

Capacity

A capacity exists where a person or body is appointed to act for a taxpayer and the Taxes Acts require returns, assessments and other statutory notices to be served on that person or body.

Capacities include

Trustee of a trust
Person or body granted a Power of Attorney
Receiver for a bankrupt taxpayer
Personal representative

Capacity address

The address of a capacity appointed to handle a taxpayer’s affairs. If a capacity is present all correspondence will be sent to that address. The SA system can accept details for up to five persons or bodies currently acting in capacity. If more than one person is acting, the first entered will be treated as the main capacity and correspondence sent to that address.

Capacity role

A capacity role is the legal position a person or body holds on behalf of a taxpayer.

Capacity roles include

Trustee
Power of Attorney
Receiver
Personal representative

Cash payments

Cash payments are counted in the presence of a witness and immediately recorded in Book 23.

Each cash payment is checked to ensure it has a supporting payslip. The total cash and the sum of the corresponding payslip amounts are agreed.

All the cash is then exchanged for a cheque of equivalent value using the Cheque for Cash (CFC) facility. The cheque drawn on the CFC account is passed along with the payslips for processing through ARP.

Certificates of Tax Deposit

A CTD received in the Local Office is sent to Banking Operations under cover of a form 125/125(Z) prominently noted ‘CTD’. A computer printed payslip or form PS1(AZ)/(BZ) is to accompany each CTD.

A CTD received in Banking Operations, either from the taxpayer or the Local Office, is sent to Finance under cover of a form 125. Any accompanying payslip is sent with the CTD along with screen prints of the details from function CASE SUMMARY, and today’s statement from function VIEW STATEMENT. Finance is notified of any follow up action being taken by Banking Operations to establish the amount of SA liability (for example where a return has not yet been captured). The acknowledgement to the taxpayer advises that the payment will appear on the taxpayer statement after any interest is calculated and added. It also notifies the taxpayer that interest is charged on any late payment if there is a shortfall.

Once Finance have transferred payment to Banking operations, Banking Operations checks that the proceeds have been correctly allocated.

CESA

Computerised Environment for Self Assessment.

CFC

The Cheque for Cash (CFC) facility enables an office that cannot bank payments to accept cash payments.

An office with a CFC facility is provided with a cheque book and a paying-in book for the same designated account. The cheques are pre-printed with the payee (HMRC) and with a signature.

When cash is received a cheque is drawn on the CFC account for the cash equivalent. The cash is deposited with the designated bank using the paying-in book provided. The CFC cheque with accompanying payslip is processed and banked by Banking Operations.

Change of address by A&PS

A change of SA address by Banking Operations is to be notified on form AZ34 to the office responsible for processing work. The relevant correspondence (or a copy) is to be attached to form AZ34.

CHAPS

CHAPS stands for Clearing House Automated Payment System. It is a facility offered by Banks for arranging same day payment and is normally used for paying larger amounts.

Money is transferred electronically into the HMRC account with Citi. The Bank notifies Banking Operations of each payment on the day of receipt.

Charge

A charge is any liability that is recorded on an SA record and payable by the taxpayer, including interest.

The due date is shown alongside each charge and is the latest relevant due date of the charge. Note: Before October 1997, the original or statutory due date of the charge was shown.

In the case of an interest charge, the due date is the date the interest charge was created.

Charge amendment

Charge amendments are made when the total liability for a tax year changes.

An amendment to the liability for a tax year may affect the payments on account a taxpayer has to pay for the following year.

Amendments to the total liability and payments on account show a transaction description of ‘AMD’ in function VIEW STATEMENT

Interest charges may also be amended. Amendments to interest show a transaction description of ‘INT-AMD’ in function VIEW STATEMENT.

Charge origin

The origin of the charge will be one of

Assessment
Return
Determination

Charge type

The following are examples of charge types

Payments on account
Balancing charges
Interest charges
Surcharges and Penalties
Revenue Assessments
Determinations

Check later

Other than the limited corrections permitted under ‘Process Now’, all checks and any enquiries must be carried out later under the enquiry provisions of Section 9A TMA 1970. This is referred to as ‘Check Later’.

Cheque codeline

The cheque codeline consists of a

Cheque number (6 digits)
Bank sort code (6 digits)
Account number (normally 7 or 8 digits)

The amount that was entered by the operator when a cheque was processed is also printed on the cheque codeline.

Cheque data

Cheque data consists of a

Bank Sort Code (6 digits)
Bank Account Number (8 digits)
Cheque Serial Number (6 digits)

The cheque data fields are blank where full cheque details were missing when the cheque was processed, for example where a cheque was mutilated.

Where cheque data appears more than once in the ‘make up’ area the payment relates to a multiple cheque transaction.

Cheque for Cash

The Cheque for Cash (CFC) facility enables an office that cannot bank payments to accept cash payments.

An office with a CFC facility is provided with a cheque book and a paying-in book for the same designated account. The cheques are pre-printed with the payee (HMRC) and with a signature.

Cheque payment

Cheque payment includes any cash or postal order payments received from the taxpayer.

Cash and postal orders are recorded as cheque payments because they are converted into cheques before being processed.

Claim to adjust payment on account

A claim to adjust payments on account is made where a taxpayer believes that, after deducting tax suffered at source

The liability will be less than was originally calculated, or

There will be no liability

A taxpayer or agent can also make a claim to adjust an earlier claim.

Claim to increase payment on account

After claiming to reduce payments on account a taxpayer or agent may realise the claim was excessive. A claim to increase the payments on account may then follow.

A taxpayer may pay an extra amount in an attempt to stop interest accruing without making a claim to increase payments on account. Without a claim to increase payments on account, it is likely that the extra amount will be allocated to another unpaid liability. In this situation, any interest charge raised on the payment(s) on account will not take the extra payment into consideration.

Where a taxpayer believes a claim to reduce payments on account was excessive a further claim increasing the payments on account should be submitted. This will ensure payments are allocated as the taxpayer intended and that the appropriate amount of interest is charged.

Payment must be made to keep any interest to a minimum and avoid the risk of a penalty.

Classes of remission

For accounting and quality monitoring purposes, remissions are divided into classes. A remission case is allocated a class of remission which is determined by the circumstances giving rise to the remission.

Clerical Giro

Clerical Giro payments are Giro payments that are notified on paper. Two types of Giro payment are notified on paper and these are

All Girobank payments, and
Certain Bank Giro payments

Note: The majority of Bank Giro payments are notified to the Accounting & Payments Service on magnetic tape.

Close company

A close company is broadly one controlled by

Five or fewer participators, (persons who have a share or interest in the income or capital of the company. For example, shareholders)
Any number of participators who are directors

Closed item or transaction

An item or transaction is closed if for a

Charge, the amount collectible is zero
Credit, all the credit is set against one or more charges

Closure date

The date on which the closure notice is issued to the taxpayer.

A closure notice is issued by the enquiry officer to the taxpayer when

HMRC considers enquiries are complete (S28A(5)TMA 1970)
The Tribunal direct that the notice must be sent (S28A(6)TMA 1970)

Closure notice

A closure notice is sent when all aspects of an enquiry are concluded. In a S9A enquiry, the notice

Advises that enquiries are now completed
Explains how any amendment(s) made by the taxpayer during the enquiry have been handled, and
Gives the HMRC view as to what tax should be in the self assessment for that year (or the extent to which any claim or election made within the return should be disallowed

The Revenue amendment to the return must be recorded on the taxpayer’s SA record at the same time as issuing the closure notice.

The above also applies to a S12AC enquiry on a partnership. In this case the closure notice is

Sent to the nominated partner, and, if appropriate
The Revenue amendment to the partnership statement must be recorded on the partnership SA record at the same time as issuing the closure notice

Collection Account Year

The accounting period used for the purposes of producing Balance and Disposal accounts is known as the Collection account year.

The Collection account year ends on the last Friday in October. The majority of the computer systems managed by Banking Operations close the account one day earlier on the Thursday before the last Friday in October.

Communication address

The address to which, in the absence of a capacity, all correspondence will be sent by the computer. You need only enter this address onto the SA record where it differs from the base address.

Communication name

A communication name is the name under which the taxpayer has requested that all correspondence is issued, if it is different to the name under which the SA record is held.

Complaint cases

Consider inhibiting statement issue to the taxpayer where the

Taxpayer has a grievance and statement issue might inflame the situation
Continued issue of statements during the investigation of a complaint might cause embarrassment to the Department. This could apply in particular to complaints to the HMRC Board, PCA, Adjudicator’s Office and Parliamentary or Ministerial cases

Contract settlement

Investigation of a taxpayer’s affairs may reveal under-declarations and omissions of income. A successful investigation in a case where a taxpayer understated income and paid insufficient tax is concluded by a contract settlement.

A contract settlement takes the form of a letter of offer from the taxpayer which is agreed in writing. The contract settlement can involve a series of payments by regular instalments.

Contract settlements are handled manually in the Network Unit of Banking Operations. They will continue to be handled in the Network Unit irrespective of whether the Settlement includes SA liability or not.

Correspondence address

An SA record must have a base address and it may also hold one or more of the following types of addresses

Business address
Capacity address
Communication address

The correspondence address is the one to which the taxpayer’s SA output is sent.

Credit balance

A credit balance exists where the current payments exceed current charges.

The credit balance is made up of any amounts that are unallocated, and / or allocated to a liability with a future date and / or overpaid.

CRI

Centre for Research and Intelligence.

CTD

A CTD (Certificate of Tax Deposit) received in the Local Office is sent to Banking Operations under cover of a form 125/125(Z) prominently noted ‘CTD’. A computer printed payslip or form PS1(AZ)/(BZ) is to accompany each CTD.

The acknowledgement to the taxpayer advises that the payment will appear on the taxpayer statement after any interest is calculated and added. It also notifies the taxpayer that interest is charged on any late payment if there is a shortfall.

Once Finance have transferred payment to Banking Operations, Banking Operations checks that the proceeds have been correctly allocated.

CT Partnerships

A CT Partnership is a partnership that consists only of persons liable to Corporation Tax.

Current charge

A current charge is any charge with a due date (value date) that is not a future date.

Current liabilities

Current liabilities are all the taxpayer’s unsettled SA liabilities that are overdue on the statement date.

Current payment amount

The current payment amount is the original payment amount less any returned payment.

Customer Service Message

When processing a return by using function CAPTURE RETURN or AMEND RETURN to enter return information or manually calculating the liability, you may identify an area where you need to give advice to the taxpayer on the completion of the return.

You can do this by completing a Customer Service Message. If using function CAPTURE RETURN or AMEND RETURN you can use the Customer Service Message screen to write your message(s). The message will be printed on the Revenue Calculation. If you are to prepare a manual Revenue Calculation the Customer Service Message can be included in the letter to the taxpayer.

If using CAPTURE RETURN or AMEND RETURN, a maximum of ten messages can be printed on the Revenue Calculation. Where you want to make more than ten Customer Service Messages or the total number of Customer Service Messages and Repair Messages exceeds 10, the details must be included in a separate letter to the taxpayer.

Note: If you are using function AMEND RETURN and saving the changes as Corrections only, include any Customer Service Message in the letter to the taxpayer. Do not use the Customer Service Messages screen.

D

D ref

A D ref is

The Office number, which consists of up to 3 numerals, and
The Register number allocated to the taxpayer, which will be between 2 and 6 numerals and may be followed by one or two letters

For example 56/51051A.

Daily penalties

Up to 5 April 2011, where a return has not been filed by the filing date, Section 93(3) or 93A(3) TMA 1970 allows HMRC to seek a direction from the Tribunal to impose daily penalties.

Daily penalties can be imposed at a rate not exceeding £60 per day (in partnership cases up to £60 a day on each partner).

From 6 April 2011, daily penalties will apply if a return has not been filed 3 months after the return due date.

Daily penalties will be charged at £10 a day up to a maximum of 90 days. If the return is filed within those 90 days, daily penalties will be charged up to, and including, the date the return was filed.

DARM

DARM stands for Debt and Return Management.

Data Protection Officers

Data Protection Officers (DPOs) have been appointed for each Executive Office and Division throughout the Department to ensure compliance with the Data Protection Act within their area. In the network the DPO is usually located in the Area Office and in many cases is supported by a liaison officer in each local office.

The DPOs are responsible for ensuring

Systems are covered by one or more of the Department’s registrations
That subject access enquiries are dealt with correctly and expeditiously within their area

They are the first point of contact for the DPU on all DPA matters within their office.

Data Protection Unit

The DPU is responsible for all the administrative aspects of operating the DPA within the Department. This includes the

Making of registrations
Control of subject access enquiries
Supply of information
Handling of any disputes
Liaison with the Data Registrar’s Office on all DPA matters

Date of birth

The taxpayer’s date of birth, where known, is used to validate certain deductions, reliefs and claims to allowances.

In PAYE it is also used as a prompt as to when pension income may first become payable.

In SA, the taxpayer should enter his or her date of birth on their SA return. It will be captured in Local Data Capture, to validate certain claims to deductions, reliefs and allowances made in that return. The SA record will be updated with the date of birth if it is not already present.

Debt Management Office

The term Debt Management Office includes

Local Debt Management Offices
Enforcement & Insolvency Services (EIS)
Banking Operations Tracing Units
Banking Operations Review Unit
Banking Operations Public Department Collection

It excludes the RGO and other areas of Banking Operations.

Debt Management Telephone Centre

The Debt Management Telephone Centre (DMTC) is one office split across three sites at East Kilbride, Cumbernauld and Shipley. It makes and receives phone calls in pursuit of outstanding debts and returns.

Deceased cases

It will often be insensitive to issue statements, even with a change of personal data to ‘Personal representative of ....... (deceased)’, in the period immediately following death.

The issue of a statement could also cause a breach of confidentiality.

Decision Support System

The Decision Support System is the computer software used to access the SA Data Mart information for profiling use. The Compliance Manager uses this to obtain a list of cases for review based on certain criteria which he / she has selected and entered online.

Deferred filing date

The standard filing date can be deferred where the taxpayer or agent satisfies HMRC that there is a reasonable excuse for not being able to file the SA return on time.

If a filing date is deferred the taxpayer is expected to file the return by the deferred filing date. If the return is filed within this extended period no fixed penalties for late filing will be applied.

However, if the return is not filed within the extended period fixed penalties will be applied and based on the original filing date.

A deferred filing date does not change the due date for payment.

Deminimis limit

The deminimis limit is a predetermined amount below which a charge will not be raised.

Determination

A Revenue determination can be made if a taxpayer has not sent in his / her SA return by the filing date for the year of return.

A Revenue determination is an estimate based on information to hand of the taxpayer’s liability to Income / Capital Gains Tax for the year of return. The estimated Income Tax also gives a basis for setting up payments on account for the next return year.

There is no right of appeal against a Revenue determination. However the taxpayer can displace it with his / her Self Assessment

Within 3 years from the filing date, or if later
Within 12 months from the date of issue of the Revenue determination

Direct Credit

The different types of direct credit payment are

CHAPS
Paymaster, and
Other payments made direct to a Banking Operations account

These payments are all described as Bank Giro payments when payment details are viewed in SA.

Direct Debit

Payment by Direct Debit (DD) involves a bank or building society customer providing a written instruction permitting regular payments to be collected by a specified payee.

A taxpayer using the DD facility sends the signed instruction to HMRC. Any DD instruction received in a Local Office is passed to Banking Operations. Banking Operations records receipt and passes the instruction to the bank or building society.

Collection of the regular payments and update of taxpayer records is initiated by Banking Operations.

Direct Debits are described as BACS when payment details are viewed in SA.

Disability exemption

Disability exemption can be claimed against lump sum payments received, where the taxpayer’s job ended because of disability.

Discretionary trust

A trust in which the income may be accumulated or paid at the discretion of the trustees or any other person.

DPA

Data Protection Act.

DPO

Data Protection Officers.

DPU

The DPU is responsible for all the administrative aspects of operating the DPA within the Department. This includes the

Making of registrations
Control of subject access enquiries
Supply of information
Handling of any disputes
Liaison with the Data Registrar’s Office on all DPA matters

Draft repayments

Repayments issued through the SA system will be created with the status ‘Draft’ initially.

This status will be amended automatically to either

‘Selected’ if the repayment is selected for checking, or
‘Authorised’ if the repayment is issued automatically without being selected for checking

Draft return

A draft return is an incomplete working version of a captured partnership return, which can be used so that proposals for discussion with the partners can be made in the case of an enquiry.

The computer will not check for errors on the draft until you request a print out of the draft partnership statement or attempt to fully capture the return.

When a draft return is fully captured, it is stored as a fully captured return and the draft is deleted.

Only one draft return may exist for a partnership for the return year.

Due dates

The normal due dates for payment of SA liability are

First payment on account - 31 January before the end of the year of self assessment

Second payment on account - 31 July after the year of self assessment

Balancing payment - 31 January after the year of self assessment

Duplicate return

A duplicate return is one which is being issued because the original has been served but has, for example, been mislaid or damaged.

The duplicate return will be issued with the date of issue and filing date which applied to the original return.

E

Effective date of payment (EDP)

Every payment is given an effective date of payment (EDP).

The EDP is the date on which payment is effective for the purposes of determining liability to interest.

The EDP is also used to establish the date from which a repayment supplement is payable.

Electronic Business Unit

The Electronic Business Unit is responsible for a wide range of support duties. These include

Dealing with queries from the public relating to registration and use of SA Online, PAYE Online for Employers and Corporation Tax Online
Handling the formal approval of electronic filers
Providing printouts of electronically filed SA returns when requested
Dealing with Magnetic Media queries and operational difficulties

Employments Framework

The Employments Framework is a database of employer and employment records. Employment details are held together for each taxpayer (primary and secondary source).

EMPREF

On setting up an employer record, the next reference on an Office list of available employer references is allocated to the new employer. This reference is also known as the EMPREF.

An EMPREF consists of not more than 7 characters. The first character must be a letter or a number in the range 0-9. For example, A123, B789123 or 024C.

Enforcement & Insolvency Service (EIS)

The Enforcement & Insolvency Service is made up of three elements

Enforcement Office (Belfast)
Enforcement and Insolvency Service (Worthing) which embraces Debt Management and Compliance Services. Included under this umbrella is both the Voluntary Arrangement and Insolvency Service
Enforcement Office (Scotland) which also includes the Civil Recovery Section

Enquiry amendments

The type of enquiry amendments that can be made to a return and how that amended liability is described on the statement is explained below:

Type of amendment: Jeopardy amendment

Description on statement:

Enquiry amendment for yy/yy (where a new open item is created on the statement)

Enquiry amendment on dd/mm/yy (where an existing open item is amended)

Type of amendment: Revenue amendment

Description on statement:

Enquiry amendment for yy/yy (where a new open item is created on a statement)

Enquiry amendment on dd/mm/yy (where an existing open item is amended)

Enquiry type

There are two enquiry types

An aspect enquiry which concentrates on one or more aspects of the return. An aspect enquiry may develop into a full enquiry
A full enquiry which involves considering all aspects of the return. You will be seeking to check the items shown on the return using the taxpayer’s own records and any third party information available. A full enquiry should not be changed to an aspect enquiry

Enquiry window

The enquiry window is the time during which HMRC has the opportunity to start an enquiry into a return for a particular year.

For years up to and including 2006-07

Where the return is filed on or before the filing date the enquiry window is 12 months from the filing date. For returns up to and including 2000-01 where the filing date is 31 January, the last date for enquiry is 30 January of the following year. 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. Where the return is filed after the filing date the enquiry window ends on the quarter date following the first anniversary of the date on which the return was filed.

For years 2007-08 and later

The enquiry window is 12 months from the date the return was received.

F

FA

Finance Act.

Failure to Notify

Failure to Notify applies where the taxpayer failed to notify HMRC of chargeability by 5 October following the end of the tax year. The return for the tax year is therefore issued after 5 October following the end of the return year.

The due date of the balancing charge remains the 31 January after the end of the tax year. There is also no change to the due dates of the payments on account for the next tax year.

Filing date

2006-07 and earlier years

The return standard filing date is normally 31 January after the end of the return year.

If the return is issued on or before 31 October following the end of the return year, the filing date is the standard filing date, 31 January following the return year end.

If the return is issued after 31 October following the end of the return year, the filing date is 3 months and 7 days after the return issue date.

Where a return is issued after 31 October with a non-standard last date for enquiry, but filed on time, a check should be made of the issue date before an enquiry is opened. The check should be made because the computer sets the filing date at 3 months and 7 days to account for the weekly batch function for the issue of returns. In some cases the 7 days may not be utilised and the last date for enquiry will be incorrect.

2007-08 and later years

The filing date will depend on the method by which the return is filed.

The filing dates are

31 October for paper returns, other than a small number of exceptions where HMRC is unable to support online filing, for operational or technical reasons, or
31 January for online returns, and for those exceptions where HMRC is unable to support online filing, for operational or technical reasons

Those exceptions referred to above are returns for

Non-resident companies (SA700)
Trustees of registered pension schemes (SA970)
Individual returns for a Member of Parliament, a Member of the Scottish Parliament, a Member of the National Assembly for Wales, or a Member of the Northern Ireland Legislative Assembly

If the return is issued on or before 31 July following the end of the return year, the filing date is the standard filing date.

If the return is issued after 31 July following the end of the return year, the filing date is 3 months and 7 days after the return issue date.

Where a return is issued after 31 July with a non-standard last date for enquiry, but filed on time, a check should be made of the issue date before an enquiry is opened. The check should be made because the computer sets the filing date at 3 months and 7 days to account for the weekly batch function for the issue of returns. In some cases, the 7 days may not be utilised and the last date for enquiry will be incorrect.

Note: If the return is issued late due to HMRC error the due dates of the balancing charge and payment(s) on account for the next year are similarly amended. But, if it is issued late due to taxpayer non-compliance (for example, late notification of chargeability) the due date of the balancing charge remains the 31 January after the end of the return year and no change is made to the due dates of the payments on account for the next tax year.

Filing returns online

Individuals can file their Self Assessment tax return details over the Internet.

To use the service they must first register and enrol by visiting the HMRC website at www.hmrc.gov.uk.

Individuals can choose to use our free online tax return or third party software that has successfully passed our testing procedures. Details of software available are listed on the HMRC website.

Final payment date

For Budget Payment Plans and Scottish Sharefishermen arrangements, which are open ended, enter a date far into the future, for example 01012049.

For Statutory Instalment and Time to Pay cases this is the date by which you expect the liability to be settled.

In the case of Time to Pay, it is recommended that you allow a small margin for delay in making the final payment. A maximum margin of two weeks is suggested.

FINEST

FINEST is a financial and management accounting and information package for SA. The package, which was purchased commercially, offers a structured General Ledger that is readily adaptable and has a flexible reporting system.

The standard reports FINEST produces are tailored to meet our particular requirements. Standard reports are printed automatically and can be viewed on screen. Customised reports can be created on request. Parameters can be specified that will provide management information broken down in a variety of ways, for example, by Executive Office, transaction type, and so on.

FINEST can be accessed on-line by nominated officers in the Accounting & Payments Service, Regional Offices, Financial Accounting Office and certain other specialist offices. Each user has a unique password to access FINEST.

Fixed automatic penalties - these apply to tax years 2009-10 and earlier

Section 93 TMA 1970 allows for fixed automatic penalties to be imposed where the filing date has passed and no return has been received.

The first fixed automatic penalty

Is £100
Is charged and put on the taxpayer’s record after the filing date
In respect of a partnership return is £100 and is charged on each partner

The second fixed automatic penalty

Is £100 (making £200 in total)
Is charged and put on the taxpayer’s record where the return has not been filed after six months following the filing date and Daily Penalties are not being charged
In respect of a partnership return is £100 (making £200 in total) and is charged on each partner

Fixed filing date - years up to and including 2006-07

The filing date is always 31 January following the end of the return year.

For instance, the fixed filing date for a 2005-2006 return is 31 January 2007.

Fixed filing date - years up to and including 2007-08

The filing date will depend on the method by which the return was filed.

For online returns, the filing date remains as 31 January after the end of the return year.

For paper returns, with a few exceptions, the filing date is 31 October after the end of the return year.

The exceptions are those returns and individuals for whom HMRC is unable, for technical or operational reasons, to support online filing. For these individuals, the paper filing date remains as 31 January after the end of the return year.

These exceptions are

Non resident companies (on form SA700)
Trustees of registered pension schemes (on form SA970)
Individuals who are a Member of Parliament, a Member of the Scottish Parliament, a Member of the National Assembly for Wales or a Member of the Northern Ireland Legislative Assembly

The fixed filing date is used in situations such as calculating repayment supplement on an overpaid balancing charge credit.

Fixed penalty - applies to tax years 2009-10 and earlier. Superseded by Late Filing Penalty for tax years 2010-11 and later

SA includes provision for penalties to be imposed when a return is not filed by the filing date. A formal notice is issued when a penalty is imposed.

The first fixed penalty arises after 31 January. There is a second fixed penalty if the tax return is still outstanding 6 months after the filing date.

The due and payable date of a penalty is 30 days after the date on the notice. Any appeal must be made within 30 days of the penalty notice.

There are similar penalties for each partner where a partnership return is late.

Note: The filing date is delayed if HMRC is late issuing a return because of HMRC error. The delayed filing date is 3 months and 7 days after the return issue date.

Flat rate expenses

Flat rate expenses are amounts of expenses agreed between HMRC and the relevant Trade Union, or other bodies, to cover the cost of maintaining or replacing tools or special working clothes. For further information, refer to the PAYE Manual.

Forecast Clearance Report

The FORECAST CLEARANCE REPORT gives details of the dates that HMRC receives credit (the ‘Clearance date’) for the different types of payment processed by Banking Operations.

All the payments processed by Banking Operations are included in the FORECAST CLEARANCE REPORT with the exception of Network Unit payments.

Foreign trust

A foreign trust is a trust not made and administered under the laws of the United Kingdom.

Form C495

The written consent of a recognised authorising officer must be obtained before a remission is recorded against an outstanding debt on a taxpayer’s SA record. The remission authority, form C495, is used for this purpose. The same form is also used where it is appropriate to cancel a remission posted on the SA record.

The Interest Review Units and Tracing Units may use their own version of form C495 but it will be clearly headed ‘Remission Authority’.

Information Management Services, Recovery and Enforcement will authorise remissions by written memo.

Formally stoodover

A charge may be formally stoodover following the receipt of an application for postponement of payment in respect of tax charged on a Revenue assessment or Revenue amendment.

A formal standover should always be used to standover a charge if an application has been received to postpone some or all of that charge. Never use an informal standover for this purpose.

All or part of a charge may be formally stoodover irrespective of how much remains unpaid.

Freestanding credit

An operator enters a freestanding credit on the taxpayer record where a taxpayer is due a credit and the amount to be credited is not held on another SA record or in OAS. Function CREATE FREESTANDING CREDIT is used to enter the credit.

If an operator has entered the wrong amount of freestanding credit the full amount of the credit is always cancelled using function CANCEL FREESTANDING CREDIT. A fresh freestanding credit is then entered for the correct amount.

Full enquiry

A full enquiry involves considering all aspects of the return. You will be seeking to check the items shown on the return using the taxpayer’s own records and any third party information available.

You should not change an enquiry type from ‘full’ to ‘aspect’.

Fully capture

Ideally you should complete the capture of all the information from the return during one session. In such a case you would treat the return as fully captured.

Further surcharge - applies to tax years 2010-11 and earlier. Superseded by Late Payment Penalties for tax years 2010-11 and later

G

Gift aid

Gift aid is tax relief on money donated to UK charities.

We treat donations as if the donor had already deducted basic rate tax from them. The charity can then reclaim this tax to increase the value of a donation.

Gift aid rules

Donors must

Pay enough UK income tax and / or capital gains tax themselves to cover the amount of tax the charity will reclaim
Give the charity a gift aid declaration

A declaration can be made to cover individual donations, a series of donations, can cover donations made during a specified period or to cover all future donations. They can also be back dated for up to 6 years before the date of the declaration provided the donation was made after 6 April 2000.

Tax relief

If a customer pays the

Basic rate of tax, they cannot claim further tax relief on payments
Higher rate tax, they can claim higher rate relief on the payments by entering the donations in the gift aid box on the SA return.

Girobank

Girobank operates a credit transfer system that enables payment to be made by

Arranging a Girobank Transfer from an account holder’s Girobank account, or
Paying cash or cheque over a Post Office counter (known as Transcash)

Girobank notifies Banking Operations daily of the credits received.

H

Heads of Duty

A term used when referring to a Government tax.

For example, Income Tax, PAYE, Corporation Tax, Capital Gains Tax are all ‘Heads of Duty’.

High risk

High risk cases are those where

There is an amount becoming due within the next 7 days of £100,000 or more
There is an amount already overdue of £100,000 or more
The PCA signal is set
There are three or more returns outstanding
The case has been referred to the Debt Management Telephone Centre (DMTC)

I

IDMS

IDMS stands for Integrated Debt Management System. IDMS is a computer based support system providing automated support for the handling of all outstanding debt cases that require local action.

Income contingent student loans and/or postgraduate loans

Income contingent student loans and/or postgraduate loans apply, in the main, to students entering higher education after August 1998.

Unlike the previous ‘mortgage style’ loans, under which repayments were made at a fixed rate once annual earnings exceeded a certain level, repayments of income contingent loans are linked to the graduate’s income.

Individual Voluntary Arrangement

A Voluntary Arrangement (VA) enables a debtor to come to a formal agreement with creditors regarding payment of debts. Proposals are prepared

By an insolvency practitioner called the Nominee, or, exceptionally if the individual is already bankrupt
By the Trustee in bankruptcy

The proposals are placed before a Creditors Meeting and if approved with or without modifications are binding on all creditors who are notified of the proposals. Once approved the VA is then implemented by an insolvency practitioner called the Supervisor.

Whilst the proposals are being prepared a debtor may obtain an Interim Order from the Court temporarily preventing proceedings being continued or commenced whilst the Interim Order is in force.

Informal Discharge

The description ‘Included in contract settlement’ indicates that an amount has been informally discharged.

The amount informally discharged is being collected under a contract settlement.

Where an informal discharge is adjusted automatically, the amount of the adjustment is not shown. The new amount takes the place of the previous amount. And there is no change to the description.

When an informal discharge is cancelled the informal discharge is omitted from the next statement. No entry is shown on the statement for the cancellation.

Informally stoodover

An informal standover may be recorded for any unpaid amount if it is considered that there is justification for temporarily suspending collection on all or part of that amount.

Suspension of collection may be appropriate in the following circumstances

An MP complaint case
An alleged payment case
An over-repayment
When the recording of a formal standover against tax makes collection of the associated surcharge, interest and tax-geared penalty inappropriate
When there is no legal right to postpone payment of the charge but the taxpayer has appealed against it, for example, surcharge

Initial surcharge - applies to tax years 2009-10 and earlier. Superseded by Late Payment penalties for tax years 2010-11 and later

Where SA liability is still unpaid more than 28 days after the balancing payment due date a surcharge will arise. This initial surcharge is equal to 5% of all the SA duty unpaid at that date.

Insolvency reference

The insolvency reference is allocated to a taxpayer if he / she becomes bankrupt or enters into a voluntary arrangement.

It must be entered in the following format.

The entry in the first two characters must be either ‘BY’ or ‘VA’.

The next four characters must be numerals and represent the consecutive number allocated to the case.

The final two characters must be numerals and represent the collection accounting year you are in at the point the case is allocated an insolvency reference.

Examples

BY 1538/98

VA 68/99

Integrated Debt Management System

The Integrated Debt Management System (IDMS) is a computer based support system providing automated support for the handling of all outstanding debt cases that require local action.

Interest discharges

Interest discharges are charge amendments made automatically to interest charges.

An example is where the due date (relevant date), of an interest bearing charge that was paid late, is changed.

Interest not charged

Interest not charged, also known as accruing interest, is the interest calculated

To ‘today’s date’
On any overdue interest bearing liability

No interest charge is created for an amount of accruing interest. An interest charge is only created when a liability is paid in full.

Interest objections

Where an objection is received to an interest charge it should be sufficient, in the majority of cases, to use the informal standover procedure to suspend collection of the disputed interest charge.

However, where the disputed interest is an accruing amount a statement showing the disputed interest continuing to accrue could provoke a further complaint.

Interest review

An interest charge is created if an interest bearing liability is cleared and payment was made late. The due date of the interest charge is the date it was created. The automatic payment allocation rules make use of this due date to determine the allocation of the next payment credit.

A review of the interest position can also cause an interest charge to be discharged where, for example

The related SA liability is increased or
A payment which cleared the SA liability is returned by the bank (returned payment) or (part) transferred

Where following a review interest is discharged, a fresh interest charge is raised when the full liability is cleared.

Interest Review Unit

The Interest Review Unit (IRU) in Banking Operations, Cumbernauld.

The Unit

Has authority delegated by the Board of HMRC to make decisions on exercising discretion over payment of interest
Is effectively a specialist Head Office section
Will handle all interest objection submissions from all offices
Will provide advice on ‘Reasonable Excuse’ appeals for Fixed Automatic Penalty (FAP) / Surcharge cases

Where the IRU considers that some or all of the interest should be given up, authority is issued to remit it - normally under Class 10.

Note: Class 10 remissions cannot be authorised locally in these circumstances.

Interim order

An interim order is made by the court and suspends all current proceedings and prevents future proceedings from being started.

Interim orders are only applicable in voluntary arrangement (VA) cases.

IRIS

IRIS stands for Inland Revenue Information Service. A separate IRIS system is maintained for Banking Operations. IRIS enables an operator to

View and update taxpayer records for Banking Operations systems
View Banking operations taxpayer indexes and overpayment records
Calculate interest and repayment supplement

Irregular payment

An irregular payment is any payment that

Requires remedial or preparatory action before it can be processed
Is accompanied by correspondence, a return and so on, or a request for a receipt
Needs to be returned to the taxpayer, is post-dated or has to be forwarded to Finance. These payments are known as potential payments

IRU

Interest Review Unit. If an objection to interest cannot be resolved locally it should be referred to the IRU. The Unit will also provide advice on ‘Reasonable Excuse’ appeals for Fixed Automatic Penalty (FAP) / Surcharge cases. The IRU is in Banking Operations, Cumbernauld.

Item date

For a charge, this is the latest relevant due date.

For a credit which is an Open Item, this is the effective date of payment (EDP).

Note: Other transactions that show a date make provision for that date within the transaction description. The date within the transaction description for

A payment is the EDP
An interest charge is the latest relevant due date of the associated charge

IVT

Input Via Terminal. A computer function which allows you to update a computer record at Banking Operations by completing an input form on screen, instead of a paper input form. The record is not updated until the next online day.

IVT INP201

IVT INP201 is the function used to transfer payments for computer charges to Banking Operations.

J

Jeopardy amendment

A jeopardy amendment may be made to an individual’s, pension scheme’s or trust’s self assessment where

There is an open S9A enquiry
A closure notice has not been sent in respect of the enquiry, and in your opinion
The self assessment is insufficient
There is likely to be a loss of tax unless it is amended immediately

K

Knowledge based system (KBS)

The KBS is the software containing the risk rules and the scoring system for automatic risk assessment. The rules have been derived and refined from PRISE (Prototype Returns Initial Screening Exercise) to suit the SA automatic risk process.

The KBS is reviewed and refined each year with full Network involvement.

L

Large cheques

Banking Operations Management has the option of identifying large payments to see if special arrangements can be made to obtain early value.

The factors influencing the decision include value of the cheque, proximity of the paying bank, how early the payment is identified.

Generally any special arrangements would involve a courier delivering the cheque to the paying bank and arranging for a CHAPS transfer to a special account at Citi.

Last SA Return

The Last SA Return Required For Year Ending 5 April signal is set when a return is not required after a certain date.

For example, if the last SA return required is for the year ending 05/04/08, the final return / notice to file would be issued in the main April 2008 issue.

The issue of a return / notice to file and the calculation of payments on account for the following year is prevented when the signal is set.

Late Filing Daily Penalties - applies to tax years 2010-11 and later

Where the return is not filed three months after the return due date daily penalties will start to accrue.

Daily penalties will be charged at £10 per day up to a maximum of 90 days.

If the return is filed during the 90 days the £10 per day daily penalty will be charged up to and including the date the return was filed.

Daily penalties are also applicable to partnerships and chargeable on each partner in the partnership.

Late Filing Tax Geared Penalties - applies to tax years 2010-11 and later

If the return is not filed six months after the return due date or the return is received six months after the return due date and captured the system will automatically impose a late filing penalty.

This will be the greater of £300 or 5% of the amount of the tax due from a determination, return or amended return if received.

If the return is not filed twelve months after the return due date or the return is received 12 months after the return due date and captured, the system will impose a further late filing penalty of the greater of £300 or 5% of the amount of the tax due from a determination, return or amended return if received.

Late issue

Late issue refers to the issue of an original return after the date of the initial automatic bulk issue.

The date of issue and the filing date are calculated and recorded automatically.

Late Payment Tax Geared Penalties - applies to tax years 2010-11 and later

Late payment penalties are imposed when tax and NIC liabilities (referred to throughout as tax) are paid late.

This includes balancing payments, determinations, amendments and revenue assessments. It is not charged on unpaid interest, penalties or on payments on account. However if any part of a payment on account is outstanding at the balancing payment due date that part will be liable to a late payment penalty.

A first late payment penalty will be 5% of the outstanding tax 30 days after the payment due date.

A second late payment penalty will be 5% of the outstanding tax 30 days and 5 months after the payment due date.

Legacy system

For the purpose of the SA Manual, the term legacy system refers to either PAYE or CODA. The text will make clear to which system it refers.

Liability unlikely

Where liability to tax is unlikely for any tax year or any period not exceeding 3 tax years, set the Liability Unlikely (LU Year) signal to prevent the issue of a return(s) / notice(s) to file for that period.

For example, if the taxpayer is unlikely to be liable to tax for the year ending 05/04/2005 a return / notice to file will not be issued until the main April 2006 issue.

Limited income pensioners (LIP)

A limited income pensioner (LIP) is a pensioner with an income that does not exceed the state pension level by a significant amount.

LIPs are invited to contact the office responsible for processing if they expect to have difficulty paying by the due date.

Any approach from a LIP to pay by instalments is given especially sympathetic treatment. Payment by regular instalments over the period until next year’s liability is due, is normally allowed.

Local Data Capture (LDC)

Local Data Capture (LDC) is a computer system, separate from the main computer, in which

Individual, trust and partnership returns are logged
Return details are entered (captured) for individuals
Return details are captured for 1998-99 and subsequent years partnership returns. (For 1996-97 and 1997-98 partnership returns the information captured is restricted to the Standard Accounts Information (SAI)), and
Return details stored on the main computer (including details from returns filed online) can be viewed or amended

LDC does not have access to information on the main computer during logging and capture and cannot display or check information held there.

Local Office Payment

Local Office Payment is a manually prepared payable order issued by the Local Office.

Low means threshold

The national default is £10,000.

Note that this parameter can also be changed locally by postcode.

Low risk

Low risk cases are those where

The amount overdue is between £100 and £100,000
There is no debt in the Debt Management office to link to
There are three or more returns outstanding, and
None of the high risk conditions apply

LU year

LU Year means that liability is unlikely to arise for a number of years.

In such cases a return is only required periodically to ensure that the taxpayer’s circumstances have not changed.

After a return has been issued for the year you enter, the computer will automatically extend the liability unlikely period for another three years.

M

Main capacity

Where there are two or more persons or bodies acting in a capacity for a taxpayer, the person or body on whom statutory notices, such as returns, are to be served is deemed to be the main capacity.

In the case of trustees / personal representatives, the main capacity is the trustee / personal representative who requests statutory notices to be served on him / her.

In the absence of such a request, it is any trustee / personal representative who is a solicitor or accountant or, if no such person, the first named trustee / personal representative.

Main personal representative / administrator

The main personal representative/administrator is the one who requests statutory notices for the period of administration, such as returns, to be served on him or her.

In the absence of such a request it is any personal representative/administrator who is a solicitor or accountant or, if no such trustee, the first named trustee.

Main source

Where a taxpayer has more than one source of income from self employment, whether as a partner or an individual, and is not linked to PAYE, one of those sources must be the primary source.

The primary source determines which office has processing responsibility for the SA record. For this reason the system must be made aware which is the primary source.

Main trustee

The main trustee is the one who requests statutory notices for the trust or pension scheme, such as returns, to be served on him.

In the absence of such a request it is any trustee who is a solicitor or accountant or, if no such trustee, the first named trustee.

Management account

The management account maintains accumulations by duty type for all SA taxpayers and provides an audit trail to the movements that created the accumulations. Each monetary transaction on a taxpayers’ SA record, causes the related management account accumulation(s) to be updated.

The management account provides the means for

Reconciling the accounting data on taxpayer records, and
Proving the integrity of the SA taxpayer records using double entry principles

Reports showing summary totals of accounting accumulations and the information used to carry out the reconciliation processes is provided by a management account reporting package called FINEST.

Mandatory review reasons

Reasons for mandatory review may be either automatically or manually selected, depending upon the particular reason and the type of taxpayer.

Examples of reasons include

Provisional figures used in the return
Change of business accounting date

Miscellaneous penalties

Miscellaneous penalties can arise from

Daily penalties
Failure to keep business records
Failure to comply with a notice requiring the production of documents, accounts or relevant particulars
Tax geared penalties not included as part of an investigation settlement. For example, fraudulent or negligent claims to reduction of payments on account

Miscellaneous Charges Unit

The Miscellaneous Charges Unit handles all types of tax, associated penalties, interest charges and so on, which are outside the other main Head of Duty system, like SA, CT and PAYE, accounted for by the SAFE system. They also deal with Stamp Duty Land Tax and Child Trust Fund cases.

Modified rules

Modified rules were used in the automatic process for creating certain payments on account (PoA) for 1996-97.

As a consequence, any 1995-96 Schedule A or Schedule D Case III to VI liability, assesssed or amended on or after 1st June 1996, was divided equally, to within 1p, between the two PoA. Taxpayers benefited because half their liability had the later, 31 July 1997, payment on account due date.

No attempt should be made to correct the position and recalculate the PoA using the statutory basis, unless there is reason to revise the PoA because of an amendment to the 1995-96 liability.

Monitoring office

The monitoring office is the office that negotiated the Time to Pay arrangement with the taxpayer. Function AMEND TAXPAYER SIGNALS shows the monitoring office identity in the Free Format Notes field.

Any enquiries about the arrangement are to be directed to this office. The monitoring office is responsible for ensuring the arrangement is adhered to and for reviewing the arrangement where further liability arises.

MRMP

The description ‘MRMP’ stands for Manually Raised Miscellaneous Penalty.

MU

Management Unit.

Multiple cheque transaction

A multiple cheque transaction consists of one payslip and several cheques.

The maximum number of cheques allowed in a multiple cheque transaction is 20.

Multiple payment re-allocations

It is possible for more than one payment to be affected by a movement on an SA record. Following an adjustment or amendment to a liability, for example to payments on account, more than one payment may need to be re-allocated.

Where a re-allocation involves more than one payment they are re-allocated in effective date of payment (EDP) order. The payment with the most recent EDP is re-allocated first.

Multiple payslip transaction

A multiple payslip transaction consists of several payslips and one cheque.

The maximum number of payslips allowed in a multiple payslip transaction is 99.

Multiple transactions

A multiple transaction is a bank lodgement payment either

With more than one payslip, or
With more than one cheque

Note: The system does not accept multiple payslip / multiple cheque transactions.

N

National agent code

The computer holds a record of agent details and national agent codes for use in the SA system.

The national agent code is entered onto a taxpayer’s record to avoid having to enter the agent’s full name and address. Whenever printed output is produced for the agent, the SA system will use that code to retrieve current details from the agent record.

The Agent Maintainer within the office that is responsible for the agent’s address will make any amendments to the details shown on the national agent list. Where the address is outside the United Kingdom, the responsible office will be the Centre for Research and Intelligence (CRI).

The national agent code is in one of the following formats

One letter, followed by four numbers, followed by one letter, for example C2715E
Five numbers, followed by one letter, for example 30115A

National agent file

The national agent file is a computer list that holds the details including Agent Identity of every agent who acts for an SA taxpayer.

(A separately maintained national agent file holds agent details for COTAX cases.)

Negotiated arrangement

A Time to Pay (TTP) agreement only exists where an arrangement has been negotiated. It is important to recognise the distinction between a negotiated arrangement and a promise or statement that payment will be sent shortly.

Net relevant earnings

Net relevant earnings are

Earnings from a non-pensionable employment
Self-employed profits as a sole trader
Share of profits from a partnership
Any profit from furnished holiday lettings

Net underpayment

Net underpayments can arise from

Voluntary direct payments. For example, where the SA charge was previously transferred to PAYE for coding out and the taxpayer has made payment to settle the liability in full, or part
‘One Year Only’ cases. For example, an underpayment arising from PAYE which needs to be brought into SA for one year only to recover the liability

New partnership

A ‘new partnership’ is a partnership whose trade or profession

Started on or after 6 April 1994, or
Is treated as commencing on or after 6 April 1994

NINO

A NINO (National Insurance No) consists of two letters then six numerals then one letter, for example, AB123456C

The final letter is not required for SA.

Nominated partner

Unless, exceptionally, the partnership return is issued to a named individual, the members of a partnership are required under S12AA(2) TMA 1970 to nominate one of their number to complete and file the partnership return including the partnership statement. This partner is referred to as the nominated partner. The term representative partner may also be used to describe the nominated partner.

If the nominated partner becomes unavailable the members of the partnership may choose a successor and must notify the change to HMRC. In the absence of such notification HMRC can make a nomination.

The nominated partner, or his / her successor is also responsible for

Dealing with all matters arising from an enquiry into the partnership return, and
Keeping the other partners informed of the progress of the enquiry

In addition any appeal rights relating to the partnership are conferred only on the nominated partner.

Nominee (Insolvency)

Individual Voluntary Arrangement proposals are prepared by an insolvency practitioner called the nominee.

Non-discretionary trust

A trust in which the trustees do not have discretion to accumulate or pay income.

Non-matched payment

A non-matched payment is any SA payment that cannot find an SA record with a matching Unique Taxpayer Reference (UTR). This payment cannot be posted in SA and is automatically re-routed to the OAS system.

A payment that is re-routed to OAS is allocated an OAS number from the SA range of OAS numbers. Banking Operations carry out a daily review of payments posted in OAS. A payment remains in OAS until it is matched and transferred to a taxpayer record or repaid to the taxpayer.

Non-standard filing date

A non-standard filing date is a date that replaces the normal filing date and can apply in cases where a partnership consists

Solely of companies, or
Of individuals and companies and the partnership accounting date ends in the period 1 February to 5 April

Notice to complete a tax return (Notice to File)

A Notice to complete a tax return (also known as a Notice to File) (form SA316) replaces the issue of a tax return in cases where

A return is filed over the Internet
A substitute return (including a paper copy of an electronically completed version of the return) is filed and the 64-8 signal is present on the taxpayer’s record

The Notice advises the taxpayer of his / her / their obligations, and that filing of a return is necessary.

Where a paper version of a substitute return is filed and the taxpayer is not represented, the taxpayer is issued a paper copy of the return at the next bulk issue date.

Notification of chargeability

A taxpayer must notify HMRC of chargeability by 5 October following the end of the tax year.

Notification of claim to adjust POA

Where a taxpayer or agent is aware that the calculated payments on account will be too high, a claim to adjust payments on account may be made. A claim must be made either

In writing, and can be notified
On the claim form SA303 (use of the claim form is not essential), or
On the tax return
By letter including by fax
Using SA Online, and can be notified by a registered taxpayer or agent
By submission of a Structured Action Request (SAR)

A taxpayer or agent may tell you that the payments on account need adjusting. Verbal notification is not to be regarded as a claim. Only written notifications or those submitted online are to be accepted as claims.

Notes:

Payment of a reduced amount on its own or a payslip showing nil due is not to be treated as a claim.
Penalties may be charged where fraudulent or negligent claims are made.

Notional tax

Most gains from UK insurances are treated as having borne tax at the basic rate. This is ‘notional’ tax and is not repayable in any circumstances. Gains from certain life annuities and friendly societies’ tax exempt policies are not treated as having borne tax at the basic rate.

NTAR

The ‘NET TRANSFERS AND RECEIPTS’ amounts on weekly / quarterly SA Form 3 Receipts reports to reconcile forms C3(Z)/C3Q(Z).

O

OAS

OAS stands for Overpayments and Accounting Summary and is used to

Temporarily hold payments that cannot be allocated to a specific taxpayer record
Handle certain accounting tasks that cannot be performed within the SA computer system, for example
Make credit and debit bank lodgement adjustments
Transfer payments between SA records, and between SA and non-SA records
Repay amounts that cannot be repaid directly from the SA system
Payments returned by the bank

There is a separate OAS computer system operating in, and maintained by Banking Operations.

OAS number

The OAS number is a 6 character consecutive number allocated to any payment that is recorded in Banking Operations Overpayments Account (OAS).

An OAS number together with the Account and a check digit forms the OAS reference.

OAS posting

A posting is made on the OAS system in respect of the amount transferred.

It is equal to but opposite in value to the posting made on the SA record.

OAS record

An OAS record is opened for each amount transferred or re-routed to OAS.

Banking Operations is responsible for clearing records on its own OAS system. Only authorised Banking Operations operators can update OAS records. View access to OAS records is widely available.

OAS reference

Each OAS record has it’s own unique 9 character OAS reference. The format of the reference is CYYX99999 where

C is the check character
YY is the account in which the payment was allocated an OAS number
X99999 is the OAS number and X is alphanumeric.

The full range of OAS numbers is detailed in the Accounts Office Manual, Section L.

The OAS reference(s) is shown on the Overpayment Statement.

OAS system

The OAS (Overpayments and Accounting Summary) system accounts for all non-SA liabilities and is used to

Temporarily hold payments that cannot be allocated to a specific taxpayer record
Handle certain accounting tasks that cannot be performed within the SA computer system, for example
Make credit and debit bank lodgement adjustments
Transfer payments between SA records, and between SA and non-SA records
Repay amounts that cannot be repaid directly from the SA system
Payments returned by the bank

Offence type

The type of offence that has potentially or actually been committed in respect of the enquiry year. For example, understated profits.

The offence type does not usually become clear until a late stage in the enquiry (on establishing the full facts). It is therefore unlikely that you will be able to enter the offence type on the SA record at the start of the enquiry.

Old partnership

A partnership whose trade or profession started before 6 April 1994 is an ‘old partnership’, up to the date of any change in the membership of the partnership on or after 6 April 1994, unless a continuation election is made for that change.

If an election is not made then the partnership trade or profession is treated as a new one from the date of the change.

Online Services Helpdesk

The Helpdesk is responsible for a wide range of support duties. These include

Dealing with queries from the public relating to registration and use of some of our online services, such as SA Online, PAYE Online for Employers, Corporation Tax Online, Stamp Taxes Online and Pension Schemes Online
Providing support for users of the Employers CD-ROM

Customers should be encouraged to visit the web site (www.gov.uk) for more information before referral to the Online Services Helpdesk. If a customer cannot find what they are looking for on the web site, or if there is any doubt, the contact details for the Online Services Helpdesk are

Email at: helpdesk@ir-efile.gov.uk

Telephone: 0300 200 3600

(Overseas: +44 161 930 8445)

Weekdays between 8.00am and 8.00pm
Saturday between 8.00am and 4.00pm
Closed Sunday, Christmas Day, Boxing Day and New Year’s Day)

Textphone: 0300 200 3603

Open item or transaction

An item or transaction is open if for a

Charge, the amount collectible is not zero
Credit, all or part of the credit is not set against a charge

Open Item Statement

An Open Item statement reports the following transactions posted on a taxpayer record

Charges and Payment credits that are open at the statement date
Charges and Payment debits that were closed during the statement period
Note: Payment debits appear once on a statement and are treated as closed in the same statement period as they appear
Any charge closed in a previous statement period where the relevant due date was amended during this statement period

All transactions in the statement period appear on an Open Item statement. The history of each open or closed item on the statement is detailed in full.

The balances on individual Open Items when added together give a statement balance.

Operator ID

The Operator ID is the officer’s 7 digit Personal Identification Number.

Organisation Unit

An Organisation Unit is an office or Management Unit within an Area. It may have processing, technical, recovery or accounting responsibility for the SA case.

Organisation Unit Identifier

The unique 6 numeric identifier allocated to each Organisation Unit in SA.

The first numeral is the office type identifier which is

‘2’ for offices that carry out processing and technical activities irrespective of any recovery activities they may perform
‘3’ for offices which exclusively perform recovery work

Followed by

The three numeral office number, including any leading zeros, and
The two numeral SA Management Unit number, including a leading zero, if appropriate

For example, SA Management Unit 05 in Office 91 is entered as ‘209105’.

Original payment amount

The original payment amount is the full amount of the payment as originally processed.

It normally corresponds with the amount of the payment sent by the taxpayer or notified by the bank.

In multiple transactions the original payment amount is the amount

On the payslip in a multiple cheque transaction
Of the cheque in a multiple payslip transaction

OU

An Organisation Unit is an office or Management Unit within an Area. It may have Processing, Technical, Recovery or Accounting responsibility for the SA case.

Outstanding balance

There are three different balances displayed on the statement. If the balance amount is a credit the suffix ‘CR’ is shown.

A description and explanation of what each balance amount represents is shown below:

Balance

This is the item balance (posting type ‘LBAL’).

Balance of account at ….. (date)

This is the balance after any credit in excess of charges due has been allocated against charges becoming due (posting type ‘ABAL’).

Before allocations to charges becoming due

This is today’s balance. It ignores any money already allocated to charges with a future date (posting type ‘TBAL’).

Overlap relief

Overlap relief is claimed when basis periods overlap which results in the same profits being taxable in two different years.

Overlap relief deducts the overlap profits in a later tax year so that over the life of the business the taxpayer does not pay tax on more than the profit earned.

Overpaid amount

An amount is classed as overpaid where the liability (excluding interest) to which it was originally allocated is reduced.

The overpaid amount is available for re-allocation to any present or future liability, or transfer to a non-SA liability, or for repayment.

Repayment supplement (RPS) is calculated by the system when a re-allocation or repayment takes place or an automatic repayment is made from an overpaid amount. If an overpaid amount is transferred to OAS any repayment supplement is calculated manually.

Note: An overpayment of interest on SA duty paid late is treated as an unallocated amount and does not attract RPS.

Overpaid balance

An overpaid balance exists where the total of payment type credits on the SA record exceed the total of the liabilities due on or before today’s date.

Overpayment (RPS purposes)

An overpayment for RPS purposes will arise where a payment has been allocated to a tax charge and that charge is later reduced to a figure that is less than the payment.

Payments made in excess of an outstanding liability or at a time when there is no outstanding liability are treated as unallocated. Such payments will only have the potential to attract RPS once they have been allocated to a liability.

For deductions at source, such as PAYE tax and SC60 credits, the effective date of payment is 31 January following the end of the tax year.

Repayments or reallocations of the following do not attract RPS

Overpayments of interest on tax paid late
Payments made in error
Payments incorrectly allocated

Overpayment statement

Any amount transferred or re-routed to OAS appears on the ‘Overpayment Statement’ produced by the OAS system for use the following working day.

The Statement is used as a working record.

P

Part captured

There will be occasions when you are not able to fully complete the capture of a return. For example, if you require advice from a colleague or further information from the taxpayer.

In such cases you would treat the return as part captured and complete the capture of the return as soon as possible.

Partners

Partners in partnerships that commenced, or were deemed to have commenced after 5 April 1994, are treated as individual SA taxpayers from the start of SA. Partnership profits are apportioned between the individual partners and they are responsible for payment of the SA liability on their share of the partnership profits.

The 1996-97 profits of partnerships in existence on 5 April 1994 are charged under the pre-SA rules for assessing and collecting Schedule D liability. Partners with liabilities assessed under Schedule D were issued with an SA return in April 1997 and they claim credit in SA for their portion of the tax and NIC in the partnership assessment.

From 1997-98 onwards, all partners are treated as individual SA taxpayers.

Partner’s taxpayer reference

The partner’s taxpayer reference must be one of the following

10 character UTR (Unique Taxpayer Reference) in the format 9999999999
First 8 characters of the NINO in the format AA999999
8 character temporary reference number in the format 99A99999

Partnership reference

The partnership reference is the 10 character UTR (Unique Taxpayer Reference) automatically allocated by the computer when the partnership is set up.

Pass for enforcement

The DARM work item is passed to the Recovery Office enforcement section for consideration of enforcement action.

Payable Order

A Payable Order is a repayment prepared and issued automatically by the SA computer system.

Payee type

The payee type can be one of the following

Taxpayer
Agent
Nominee

Paymaster payments

Paymaster payments are payments that the Office of HM Paymaster General transfers direct into an HMRC bank account.

Payment allocation

When a payment is posted to a taxpayer record the payment is automatically allocated or linked to any SA charge(s) that

Is overdue, or
Falls due within the next 45 days. Note: The 45 day period is a parameter that can be varied.

If there are no unpaid liabilities, or the charge is not due for more than 35 days, the SA payment is held on the record as an excess credit or an unallocated amount.

Once a payment has been allocated the allocation is only disturbed if the associated charge is reduced, or all or part of the payment is transferred, or the payment is returned.

Payment arrangements

The TSS called ‘Payment Arrangements’ provides support for Time to Pay (TTP) cases.

Support is concentrated in three areas

An instalment and interest calculation facility to assist with setting up arrangements and to enable interest to be estimated ‘up-front’
For Direct Debit TTP cases, on screen completion of a setting up form (Form DD3) for notifying Banking Operations
A BF facility to assist in monitoring payments in cases where the taxpayer is paying by Giro or sending cheques

Payment date

The payment date is the date the payment was processed.

Payment details

The payment details held for each payment posted to an SA taxpayer record are

Payment amount
Posting date
Effective date of payment which is set to ‘today’s’ date unless there is an operator entered date present
Posting type ‘PYT’ and details of the payment type
Payment serial number, allocated by ARP or by the system, and the numeral of the Banking Operations site (Shipley or Cumbernauld) that processed the payment
Cheque details (bank sort code, account number and cheque number) where a cheque payment was processed and cheque details were captured

Payment in error

This could occur for example where a payment made to HMRC, is intended to satisfy a non-HMRC liability. Repayment in these circumstances may create a debit balance or a reduced credit balance on the taxpayer’s SA record.

Payment reference

A payment reference is given to each SA payment when it is first processed. The payment reference given to a payment is as follows:

Payment reference - Cheque data (cheque number, bank sort code and account number

Type of payment - Bank lodgement payment (BLP)

Payment reference - Payment serial number, payment processing date and processing Banking Operations office

Type of payment - Bank Giro, Girobank, BACS payments and any BLP with missing cheque data

Payment serial number

The payment serial number is a six digit number. It is allocated automatically to each payment or returned payment when it is first processed.

When linked with the payment date and Organisation Unit, the serial number provides a unique identifier for each payment or returned payment processed.

Payments

Payments fall into one of four groups

Cheque payments, also known as bank lodgement payments
Girobank, clerical Bank Giro and Direct Credit payments including CHAPS and Paymaster
Bank Giro on Tape and BACS payments
Direct Debit payments

Payment shortfall

A payment shortfall will arise on the balancing payment where the arrangement includes an earlier liability and that earlier liability is paid before the balancing payment due date.

For example, an arrangement for the second payment on account (PoA2) and balancing payment excludes interest. If the PoA2 is paid in full before the balancing payment due date, the interest charge on PoA2 will have an earlier due date than the balancing payment. The allocation rules will clear interest ahead of the balancing payment leaving a shortfall that will trigger a surcharge.

Payments on account

Payments on account are the two amounts a taxpayer is expected to pay on account of the total SA liability for the tax year.

The payments are normally due on

31 January before the tax year end
31 July after the end of the tax year

Any balancing SA payment is due on 31 January after the end of the tax year.

Payslip

A payslip for an SA payment must show the

Taxpayer name
Unique taxpayer reference (UTR) with a suffix ‘K’ (for example 3453897644K) as the payslip reference, and, optionally
A payment amount in the ‘Amount due’ box

Payslip amount

Each payslip has an ‘Amount due’ box in the body of the payslip where the total amount payable can be printed. The payslip codeline also provides for an amount to be shown.

The ‘Amount due’ box and the payslip codeline do not always show the same details. There are circumstances when the ‘Amount due’ box will be blank but an amount will be printed in the payslip codeline.

Payslip codeline

The payslip codeline is printed in the white strip at the foot of the payslip.

The Unique taxpayer reference plus the suffix ‘K’, payment amount, and the HMRC bank account number are printed in the codeline.

The codeline details are read during automatic data capture.

Payslip reference number

The reference number shown on a SA payslip consists of the Unique Taxpayer Reference (UTR) and the suffix ‘K’ (for example, 3453897644K).

The UTR is a unique set of 10 numerals allocated automatically by the computer when an SA record is set up for a taxpayer.

The letter ‘K’ is an identifier that indicates the payment is for SA.

PCA

PCA stands for Priority Collection Action.

PCA signal

PCA stands for Priority Collection Action.

The PCA signal can be set by any office. However it is most likely to be set by the Recovery Office.

The PCA signal is set where local circumstances, policy or case features indicate that the case should be dealt with as high risk.

The signal ensures a debt is directed to the Recovery Office.

Note: When the PCA signal is set automatic repayments are inhibited

Penalties

SA includes provision for a number of possible penalties to be imposed when a return is not filed by the filing date.

For years up to and including 2006-07, fixed penalties for failure to file a return arise automatically after 31 January, which is the final date for filing most SA returns.

For 2007-08 to 2009-10, fixed penalties arise for failure to file a return before the appropriate filing date - 31 January for online returns, and the small number of cases for whom HMRC is unable, for operational or technical reasons to support online filing, or 31 October for all other paper returns. The penalties are applied automatically after 31 January.

The Tribunal can be asked to impose a daily penalty of up to £60 a day.

A penalty of up to the amount of tax for the year can be imposed if the return is still outstanding 12 months after the filing date.

For tax years 2010-11 and later, a fixed penalty arises if a return is not filed by the due date, even if there is no tax to pay or all the tax owed is paid. After three months, if the return is still outstanding, daily penalties of £10 a day will be charged, up to a maximum of £900. Further penalties will be charged after six months, and after a year. Penalties for late payment will also be charged at 5% of the amount unpaid for the year - 30 days, 6 months and 12 months after the due date.

Period for opening an enquiry

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

For years up to and including 2006-07, an enquiry can be opened into a return at any time within the 12 months from the fixed filing date.

But if the return is received (or an amendment made) after the fixed 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 amendment made.

Period of Administration

A period of administration is a period following death during which the personal representative(s) settle the estate of the deceased. It starts on the day after the date of death of the deceased person and ends when the residue of the estate has been ascertained.

Personal account balance

The Personal Account Balance indicates the payment position on the taxpayer record.

A minus ‘-’ sign in front of the amount indicates that payments exceed current charges and that the account is in credit.

The Personal Account Balance is shown on the VIEW STATEMENT function screen on the line with the description ‘before allocations to charges becoming due’.

Personal call

The work item is awaiting a personal visit to be made to the taxpayer’s address.

Personal call made

Personal visit made to the taxpayer’s address.

Personal representative

‘Personal representative’ in relation to a person who has died is defined in the Income Tax (Trading and Other Income) Act 2005 (ITTOIA 2005) as:

‘In the UK, persons responsible for administering the estate of the deceased and in a country or territory outside the UK, those persons having functions under its law equivalent to those of administering the estate of the deceased’.

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

Post-dated cheques

A cheque is treated as post-dated if it is dated more than 2 working days ahead of ‘today’. Any cheque dated up to 1 or 2 working days ahead is handled normally.

Acceptable post-dated cheques received in Banking Operations direct from the taxpayer are held with corresponding payslips to await processing. Where a payslip is missing a pro forma payslip is prepared (see AO Manual P).

Acceptable post-dated cheques received in the Local Office are sent to Banking Operations under cover of a form 125/125(Z). A computer printed payslip or form PS1(AZ)/(BZ) is to accompany each cheque.

Postal orders

Postal Order payments are crossed immediately with an HMRC crossing stamp and details including serial numbers are recorded.

Each postal order payment is checked to ensure it has a supporting payslip. The total of the postal orders and the sum of the corresponding payslip amounts are agreed.

Postal orders are then exchanged at the Post Office for one or more girocheques (see Note) to the agreed value (see AO Manual P). The girocheque is passed along with the payslips for processing through ARP.

Note: A maximum of 99 payslips can accompany one girocheque through ARP.

Posted

Posted means recorded on the taxpayer record.

Posting date

The posting date is either

The date that a transaction was processed, or, in the case of a transfer to or from SA through OAS
The date the transfer took place

Posting types

The posting types used for payment type credits and debits are listed and explained below.

PYT - Payment credit direct to SA
REP - Repayment
CRP - Cancelled repayment
DCH - Returned payment
TFO - Transfer from OAS
TTO - Transfer to OAS

Potential payments

Potential payments, for example a Certificate of Tax Deposit or a foreign cheque, cannot be credited immediately. It may be appropriate to inhibit statement issue until the credit is posted to the taxpayer record.

Process Now

‘Process Now’ is where information on the SA return is accepted. Repairs are restricted to those necessary to enable the return to be processed as quickly as possible through Local Data Capture.

The repairs dealt with concern only

Obvious errors and mistakes, which may be repaired under the provisions of Section 9A TMA 1970, and
Unsatisfactory returns

Q

Qualifying overpayment

An overpayment qualifies for RPS where a payment has been allocated to a tax charge and the charge is later reduced to a figure that is less than the payment.

Payments not allocated to a charge do not attract RPS.

A balancing charge credit (BCC) has an effective date for RPS of 31 January after the end of the tax year. RPS applies from this effective date when the credit is re-allocated on the taxpayer record or repaid, whether the BCC was allocated to a charge or not.

Repayments or re-allocations of the following do not attract RPS

Overpayments of interest on tax paid late
Payments incorrectly allocated or made in error

Quarter dates

The quarter dates are

31st January
30th April
31st July
31st October

R

RD

Relevant date.

Reasonable excuse

Before a request for a deferred filing date can be accepted the taxpayer or agent must prove that there is a reasonable excuse for not being able to file the return by the original filing date.

Examples of where a reasonable excuse could be proved are

A sudden and serious illness in the family or
A fire at the business premises and records have been destroyed

Examples of where a reasonable excuse is not proved are

Pressure of work
Lost or mislaid return

Reckonable date

The reckonable date is the date from which interest starts to accrue where payment is late.

Recovery proceedings check

Checks undertaken before proceedings are commenced and at appropriate stages in the recovery process to ensure that recovery action is not taken in inappropriate cases.

Reissued return

A reissued return is one that is issued where the original was not served, for example, where it is returned RLS.

The date of reissue and the filing date are calculated and recorded automatically.

Relevant date (Insolvency)

In a VA case the relevant date is usually the date of the Interim Order (unless the case is BY). Further advice concerning the relevant date is given in the Insolvency (INS) Manual.

In a BY case the relevant date is usually the date of the Bankruptcy Order or the date of appointment of an interim receiver.

In this context a relevant date is not to be confused with an interest relevant date.

Relevant date (Interest)

The relevant date is the date from which interest starts to accrue where payment is late.

Relevant date (surcharge) - applies to tax years 2009-10 and earlier. Superseded by Late Payment penalties for tax years 2010-11 and later

The relevant date for surcharge is the date that a surcharge liability arises on unpaid SA duty. There are two relevant dates for surcharge as follows

28 days after the balancing payment due date for initial surcharge
6 months after the balancing payment due date for additional surcharge

A taxpayer who provides proposals for payment of SA liability within 28 days of the balancing payment due date may avoid paying both initial and additional surcharge.

The 28 day period is designed to give taxpayers who realise they have insufficient funds time to make suitable proposals.

If proposals are received after the 28 day period but within 6 months of the balancing payment due date the taxpayer may avoid additional surcharge.

Repair

At any time before the end of a period of nine months beginning with the day on which a taxpayer’s return is received, you may amend or repair that taxpayer’s self assessment to repair any obvious errors or mistakes in the return.

Repayment serial number

The repayment serial number is a 2-digit consecutive number.

It is allocated to any repayment or cancelled repayment transaction on the taxpayer’s SA record.

If you want to view the repayment reference use function VIEW REPAYMENT.

Return due date - years up to and including 2006-07

The return due date, otherwise known as the return filing date, is normally 31 January after the end of the tax year.

However, if HMRC is late issuing a return, for example, because of HMRC error, the filing date is delayed.

The delayed filing date is three months and 7 days after the return issue date.

The due date of the balancing payment and the due date(s) of the payment(s) on account for the following year are similarly amended.

Return due date - years 2007-08 and later

The return due dates, otherwise known as the return filing dates are as follows

31 January for online returns and those for whom HMRC are unable to support online filing for operational or technical reasons, or
31 October for paper returns.

However, if HMRC is late issuing a return, the filing date is delayed. The delayed filing date is the later of

31 October for paper returns, or
31 January for online returns and those for whom HMRC is unable to support online filing, for operational or technical reasons, or
Three months and seven days after the return issue date

The due date of the balancing payment and the due date(s) of the payment(s) on account for the following year are similarly amended.

Returned payment type

The returned payment type is determined by the method of payment and, in the case of a bank lodgement payment, by the lodgement bank. The different returned payment types are listed below:

Method of payment - Bank lodgement payment (BLP)

Returned payment type - RBS (Banking Operations Cumbernauld), NWB and BOI (Banking Operations Shipley)

Method of payment - Bank Giro

Returned payment type - BGP (paper and tape)

Method of payment - Girobank

Returned payment type - NGP

Method of payment - BACS recall

Returned payment type - BAC

Returned payment

Returned payments are payments that are returned by the bank unpaid.

A payment credited to the taxpayer record that is returned, either wholly or in part, is shown on the statement as a separate Open Item.

The effective date of payment is displayed in the Date column along with the descriptor ‘Payment (original date) £… (amount) returned’. The Amount and Balance columns are blank.

The Open Item against which the payment was originally allocated no longer reflects the credit.

The different types of payments that can be returned by the bank are

Cheque or bank lodgement payments
Bank Giro payments
Girobank payments and
BACS payments, known as BACS Recalls

Payments returned by the bank as unpaid are processed by the Accounting & Payments Service.

Returned payment posting date

The date that should be displayed in this field is the processing date of the returned payment.

Due to a system problem, the date the bank returned the payment, that is the Bank Advice Date, is displayed instead of the processing date.

Returned payment serial number

The returned payment serial number is a six digit number. It is allocated automatically to each returned payment when it is first processed.

When linked with the transaction date and Organisation Unit, the serial number provides a unique identifier for each returned payment processed.

Revenue activity

There are four types of Revenue activity for which an office may be responsible

Processing
Technical
Recovery
Accounting

When an office becomes associated with a taxpayer it assumes responsibility for one of the above areas of work for that taxpayer. Only one office can have responsibility for a particular area of Revenue activity at any time.

An area of Revenue activity can be transferred from one office to another when appropriate, for example, when the main source of income changes.

Revenue amendment

A Revenue amendment is made following the completion and closure of an enquiry into a return.

Where a Revenue amendment is adjusted the adjustment is described as an ‘Enquiry amendment on .......(date)’.

Revenue assessment

A Revenue assessment is an assessment made by HMRC in respect of income that

Does not form part of the taxpayer’s self assessment, for example where the year is prior to SA, or, in certain circumstances
Has not been included in the taxpayer’s self assessment, for example in a discovery assessment

Revenue calculation

HMRC is obliged to calculate the tax due, from the information included in the return and supplementary pages, provided the taxpayer

For years up to and including 2006-07

Submits the completed return by 30 September, following the end of the SA year, and
Answers the question in the return ‘Do you want to calculate your tax ?’ by entering a tick in the ‘No’ box

For years 2007-08 and later

Submits the completed paper return by 31 October following the end of the SA year

If the return is submitted late HMRC will still calculate the tax due on request, but cannot promise to do so before 31 January following the end of the SA year.

Revenue determination

A Revenue determination can be made if a taxpayer has not sent in his / her SA return by the filing date for the year of return.

There is no right of appeal against a Revenue determination. However the taxpayer can displace it with his / her Self Assessment

Within 5 years from 31 January next following the return year to which the Revenue determination relates, or, if later
Within 12 months from the date of issue of the Revenue determination

Revision Notice (Individuals)

Where repairs are made to entries on a taxpayer’s return a Tax Calculation is sent to the taxpayer which includes a Revision Notice detailing the repairs made.

The notice also includes the reason for the repairs. For example, arithmetical error or where the wrong figure has been carried forward from one box to another.

Where more than 10 repairs are made on a return a Revision Notice will not form part of the computer issued Tax Calculation (SA302). In these cases you must issue a separate letter to the taxpayer detailing the repairs made. Note: A maximum number of 10 repairs and Customer Service Messages in total can be included on the SA302. There will therefore be instances where a separate letter is required although the number of repairs is less than 10. For example the return contains eight repair messages and three Customer Service Messages.

Revision Notice (Partnership)

Consequential repairs made to entries on a partner’s own return are done using the function CAPTURE RETURN where the partner’s return has not been fully captured. This automatically generates a Tax Calculation which includes a Revision Notice detailing the repairs made.

The notice includes the reason for the repairs as ‘The Partnership Tax return has been amended’. You should not explain how the revisions to the partnership return arose in your notification to the individual partner.

If the partner’s return has been captured, function AMEND RETURN should be used to correct the original captured details. The change is recorded as a correction and a letter of explanation sent to the taxpayer.

Revision Notice (Trust)

Where repairs are made to entries on a Trust and Estate return a Tax Calculation is sent to the trustee automatically by the Technical Support System (TSS). The Tax Calculation includes a Revision Notice detailing the repairs made.

The notice also includes the reason for the repairs. For example, an arithmetical error or where the wrong figure has been carried forward from one box to another.

Risk

The result of the risk scoring process will produce a risk score for each risk rule ID. Each risk rule is allocated a four character reference by which the rule is identified. These risk rule IDs will be held in the SA Risk Mart together with a risk factor description and compliance indicator.

This data will only be available for selection on the Risk report.

Round sum

An amount is a Round Sum if it is divisible by 100, 120, 250 or 500 without remainder.

RPS

Repayment supplement. Arises in SA when an Overpayment for RPS purposes is repaid or reallocated following a claim by the taxpayer or agent.

S

SA

Self Assessment.

SA charge based item

SA charge based items refer to items for which a charge has been created on the taxpayer’s SA record. These will appear on the statement.

Examples of charge based items are those arising from a

Revenue assessment
Revenue amendment
Jeopardy amendment
Penalty (for tax years up to 2009-10)
Late Payment Penalty (for tax years 2010-11 and later)
Late Filing Tax Geared Penalty (for tax years 2010-11 and later)

SA due dates

The normal due dates for payment of SA liability are:

First payment on account

31 January before the end of the year of self assessment

Second payment on account

31 July after the year of self assessment

Balancing payment

31 January after the year of self assessment

SA non charge based item

SA non charged based items are those for which no charge is created on the taxpayer’s SA record. A postponement application should never accompany an appeal against one of these items.

The taxpayer may appeal against the following types of non charge based item

A HMRC requirement to produce documents
The continuation of a HMRC enquiry
A Revenue amendment of a partnership statement

SA payslip

A payslip for an SA payment must show the

Taxpayer name
Unique taxpayer reference (UTR) with a suffix ‘K’ (for example 3453897644K) as the payslip reference, and, optionally
A payment amount in the ‘Amount due’ box

SA repayments

SA repayments will arise where

A repayment is processed automatically following the capture of the return
Function ISSUE REPAYMENT FROM OVERPAID BALANCE is used to issue or record the repayment on the SA system
A repayment is made through OAS following the use of function TRANSFER FROM OVERPAID BALANCE or function TRANSFER FROM TAXPAYER CREDIT

SA Risk Mart

A Mart is a computer that has a large collection of database records.

The data is organised in such a way as to provide operators with the ability to access, analyse and extract the business information they need. The SA Risk Mart holds a copy of selected:

Taxpayer information, including designatory, source and signals data
Returns and supplementary pages data
Liability period data
Organisation Unit (OU) details
Risk scores

SA stranded underpayment

An SA stranded underpayment will arise where the coding out of an SA charge through PAYE has proved wholly, or partly unsuccessful. The underpayment will then need to be transferred back into SA as a charge on the taxpayer’s SA record.

SA taxpayers

The taxpayers who potentially have to make payments on account in SA are

Individuals
Trustees
All partners in respect of any personal income
Partners in partnerships that commenced or were deemed to have commenced after 5 April 1994, in respect of partnership income

Payments on account are also expected from taxpayers who have income which, before SA, was dealt with under the Direct Collection arrangements.

Most SA taxpayers with a liability in the preceding tax year are expected to make payments on account but there are some exceptions.

SA View L&P

From 30 April 2003 Individual SA customers and authorised tax advisers have been able to view online, copies of Statements of Account that have been issued in the last 3 calendar years.

The service is called ‘SA View liabilities and Payments’ (SA View L & P) and in addition to being able to view issued statements the service now enables users to see the latest liabilities and payments position on an SA record over the Internet.

It is a view only facility showing liabilities and payments information, along with Statements of Account issued in the past 3 calendar years to Individual SA customers only (or their tax advisers). External users must be registered for the Internet service for Self Assessment.

Internal staff

The same facility is also available for internal staff as an alternative to using the SA system to view a taxpayer’s account. It also enables you to view the same copy of an issued Simple Statement or Open Item taxpayer statement that an Individual received through the post and taxpayers and their tax advisers can see online, with exactly the same layout. This should be particularly helpful when answering specific statement enquiries.

Schedule D reference

A Schedule D reference is

The Office number, which consists of up to 3 numerals, and
The Register number allocated to the taxpayer, which will be between 2 and 6 numerals and may be followed by one or two letters

For example 56/51051A

Schedule D register number

A Schedule D Register number is allocated to the taxpayer when a CODA record is required. (Note: CODA was decommissioned on 1 November 2010 and from that date assessments raised manually)

It will be between 2 and 6 numerals and may be followed by one or two letters, excluding I, N, O, S, U and Z

Leading zeros will not be displayed on the Work List.

For example 51051A

Scottish Sharefishermen Scheme (SSF)

The voluntary deduction scheme was introduced on 1 January 1988 to assist Sharefishermen in the Scottish fishing industry to pay their tax liabilities on time.

When a Sharefisherman joins the voluntary tax deduction scheme he signs a mandate, provided by the Settling Agent, in favour of the Bank of Scotland. Settling Agents send the mandate to the Bank.

Where a Sharefisherman has signed a mandate the Settling Agent deducts a fixed percentage from the sharefishing income. The deductions are paid into a special interest bearing account with the Bank of Scotland.

The money held in the special account is solely for the purpose of meeting SA (and any pre-SA) liabilities. Sharefishermen have no right to make withdrawals from these accounts. Details of the Sharefishermen in the scheme are maintained by the office responsible for processing at Peterhead.

Twice a year, in January and July, Banking Operations at Cumbernauld arrange for payments to be transferred from the Sharefishermen’s bank accounts. Payments are transferred or collected by Direct Debit.

Secondary password

Certain functions require a secondary password to be entered before the operator can access them.

The secondary password must be used to authorise the repayment for issue.

Only operators with the appropriate user role will be able to authorise repayments.

Segment type

The segment type identifies

The size of turnover in a Schedule A and / or D case
The type and complexity of employment in non-business cases

Note: The segment types you must enter on the CQI Workbench in function ENQUIRY DETAILS are those described in the Enquiry Manual. They are different to the segment types held on the SA record, which are determined from the captured return.

Selected repayments

This status identifies a repayment which has been selected for checking before issue and will appear on a Work List.

This status will be changed to either ‘Cancelled Selected’ or ‘Authorised’ when reviewed by the Repayment Authoriser.

Settlement date

An enquiry is deemed to be settled when

All enquiries have been concluded into an individual’s or trust’s Tax Return (or amendment to it) in a S9A enquiry, a partnership Tax Return (or amendment to it) in a S12AC enquiry
Any additional liability has been agreed with the taxpayer (or, is no longer under appeal) in a S9A enquiry or nominated partner in a S12AC enquiry, and, for the year of enquiry, dealt with by either amendment to the self assessment (or included in a contract settlement) in a S9A enquiry or amendment to the partnership statement in a S12AC enquiry

Note: Only when the S12AC enquiry is settled can the partners’ self assessments be amended in respect of their share of partnership tax.

No right of appeal exists against such an amendment to the partner’s self assessment.

Sharefishermen

Sharefishermen receive income from the profit made when fish caught during a fishing expedition are sold. The profit is shared among the Sharefishermen.

A Sharefisherman can give written authority for voluntary tax deductions to be made from his share of the profit.

Sharefishermen’s Voluntary Tax Saving Scheme (SVTSS)

The voluntary deduction scheme was set up in April 2000 for Sharefishermen in England, Wales and Northern Ireland.

When a Sharefisherman joins the voluntary tax deduction scheme he signs a mandate, provided by the Settling Agent, in favour of Barclays Bank. Settling Agents send the mandate to the Bank.

Twice a year, in January and July, Banking Operations arrange for payments to be transferred from the Sharefishermen’s bank accounts. Payments are transferred or collected by Direct Debit.

Simple Statement

The Simple Statement was introduced in August 2006. The majority of statements are issued in this format, although a few are still issued in Open Item format.

Simple Statements only show the changes to the SA account since the last statement was issued.

The layout of the statement now includes 3 columns, showing Tax Due, Credits and Balance. Where there are 2 or more amounts of tax due for the same date these are grouped together and sub-totalled. The balance is then updated by the sub-total and not each individual entry. Where there are 2 or more credits for the same date these are also grouped together, sub-totalled and the balance updated by the sub-totalled amount.

The history of an individual charge and allocation of payments / credits is not shown. Interest is shown as a single summarised amount and is the total of any late payment interest plus any accruing interest that has arisen since the last statement was issued.

A summary box shows the overall account balance. A payslip is only included where there is an amount to pay.

SIR

Strategic Information Repository.

Source reference

A Source reference is a unique number in the range 1-9999 allocated to each Trade source.

Where the taxpayer carries out more than one trade and completes more than one set of trade pages, the Source reference must be entered during capture of the return details.

SSF

The Scottish Sharefishermen Scheme (SSF) was introduced on 1 January 1988 to assist Sharefishermen in the Scottish fishing industry to pay their tax liabilities on time.

When a Sharefisherman joins the voluntary tax deduction scheme he signs a mandate, provided by the Settling Agent, in favour of the Bank of Scotland. Settling Agents send the mandate to the Bank.

Standard filing date - years up to and including 2006-07

The return standard filing date is normally 31 January after the end of the return year.

If the return is issued on or before 31 October following the end of the return year, the filing date is the standard filing date, 31 January following the return year end.

If the return is issued after 31 October following the end of the return year, the filing date is 3 months and 7 days after the return issue date.

Standard filing date - years 2007-08 and later

The return due dates, otherwise known as the return filing dates are as follows

31 January after the end of the return year, for online returns and those for whom HMRC are unable to support online filing for operational or technical reasons, or
31 October after the end of the return year for paper returns

However, if the return is issued after 31 July following the end of the return year, the filing date is delayed. The delayed filing date is the later of

31 October after the end of the return year for paper returns, or
31 January after the end of the return year for online returns and those for whom HMRC is unable to support online filing, for operational or technical reasons, or
Three months and seven days after the return issue date

Statement

Each taxpayer is issued periodically with a statement known as the Self Assessment Statement. The statement shows the current position on the taxpayer record. Note: A statement is created but it is not issued if the Statement Inhibited signal is set on the taxpayer record.

The statement can be a prompt or reminder to make payment.

Following the introduction of the Simple Statement in August 2006 the majority of statements are issued in this format, although a few are still issued in Open Item format.

Simple Statements only show the changes to the SA account since the last statement was issued. The history of an individual charge and allocation of payments / credits are not shown. Interest is shown as a single summarised amount and is the total of any late payment interest plus any accruing interest that has arisen since the last statement was issued. A summary box shows the overall account balance. A payslip is only included where there is an amount to pay.

Where an Open Item statement is issued, these show all charges cleared in the statement period or remaining collectible and are itemised on the statement. Any unallocated and / or overpaid payment credit is also shown. The history of each charge or payment on the statement is detailed in full.

Individual balances on charges and credits are added together to give a statement balance. The statement only includes a payslip where there is an amount to pay.

Statement balance

The statement balance is the balance brought forward from the previous statement

Plus any credits or debits in the period covered by the statement
Plus interest due for the period covered by the statement

An amount with a suffix ‘D’ means a debit amount and indicates there is an amount payable.

Statement Control Officer

The officer authorised to inhibit statements is known as the Statement Control Officer (SCO). Normally there will only be one SCO in a Local Office.

Statement date

The statement date is the date shown on the statement and is one day prior to the date the statement is created.

Interest and the account balance are calculated up to and including the statement date.

Statement issue cycle

Statement issue or creation normally takes place over a 10 day period in the first half of each month. The period taken to complete the monthly issue of statements is referred to as the statement issue cycle.

Each taxpayer’s SA record is reviewed during the statement issue cycle to determine whether a statement should be created.

A periodic statement issue cycle runs, on average, twice a year and reviews each customer’s record for a wide range of qualifying transactions.

The remaining runs are standard, in which statements are only selected for issue where a new debit has occurred.

The days on which the statement issue cycle runs and the number of statements created on any day is controlled centrally. In quieter months the cycle will be completed early. Therefore, it is not possible to say on what day a statement will be created as this may vary from month to month.

Statement lower limit

The statement lower (de minimis) limit is a variable amount set centrally. It is currently £32 for periodic statements and £2 for standard statements. A balance less than these figures does not prompt the issue of a statement.

Note: A transaction posted to an SA record can prompt the issue of a statement showing less than £32. Transfers to or from OAS are examples of transactions that prompt a statement whatever the balance on the SA record.

Statement message

The message at the foot of the statement indicates whether it was issued to remind about making payment or for information.

Note: Where a taxpayer is insolvent the ‘For information’ message is shown. This message was not printed on an issued statement where the insolvency signal was set after the statement issue date.

Statement of consent

A statement of consent is attached to the form CIS41 and is required to confirm the apportionment of the CIS25 deductions for a partnership.

A request for an in-year repayment to a partner can only be allowed where the other members of the partnership sign a statement of consent.

Statement period

The statement period runs

From the day following the date on the previous statement (or from the date the taxpayer’s SA record was set up)
Up to and including the date shown on the statement you are considering

Note: The last batch transactions with a date up to and including the date shown on a statement are omitted from that statement. They are included for the first time on the next statement. For example, a statement dated

Tuesday 8 March excludes payments processed through ARP on 8 March
Sunday 6 May excludes payments processed through ARP on Friday 4 May

Statutory filing date - years up to and including 2006-07

The statutory filing date is normally 31 January after the end of the return year.

If the return is issued on or before 31 October following the end of the return year, the statutory filing date is 31 January following the end of the return year.

If the return is issued after 31 October following the end of the return year the statutory filing date is 3 months and 7 days after the return issue date.

Statutory filing date - years 2007-08 and later

This is the legal date by which a return must be filed.

The statutory filing dates are as follows

31 January after the end of the return year, for online returns and those for whom HMRC are unable to support online filing for operational or technical reasons, or
31 October after the end of the return year for paper returns

However, if the return is issued after 31 July following the end of the return year, the filing date is delayed. The delayed filing date is the later of

31 October after the end of the return year for paper returns, or
31 January after the end of the return year for online returns and those for whom HMRC is unable to support online filing, for operational or technical reasons, or
Three months and seven days after the return issue date

The statutory filing date is used in situations such as determining whether a penalty is due.

Statutory instalment arrangement

A taxpayer has the statutory right to pay certain SA liabilities by instalments. These arrangements are referred to as Statutory Instalment Arrangements (SIA).

The SA liabilities that qualify for SIA status are

Certain income under S137 ICTA 1988
Capital Gains Tax (S280 TCGA 1992)
Capital Gains Tax (S281 TCGA 1992)
S34(8) ICTA 1988

Stranded underpayment

An SA stranded underpayment will arise where the coding out of an SA charge through PAYE has proved wholly, or partly unsuccessful.

The underpayment is transferred back into SA as a charge on the taxpayer’s SA record by creating a charge type ‘SUP’.

Strategic Information Repository

A computer system of electronic data which can be accessed by Regional Executive Office personnel when required. There are many different subjects contained within the system and the release of material is controlled by the Departmental Planning Division.

Subject access enquiries

Data subjects are individuals for whom information is recorded on computer or on clerical records. Subject access enquiries are applications by individuals for details of the information about themselves that is held by HMRC.

Sundry charges

The sundry charges are

Manually raised miscellaneous penalties
Net underpayments which arise when charges payable under a statutory instalment arrangement are created, and
Stranded underpayments which arise where the coding out of an SA charge through PAYE has proved wholly, or partly unsuccessful

Supervisor

Once the Individual Voluntary Arrangement proposals are approved an insolvency practitioner, called the supervisor, implements the voluntary arrangement.

Supplementary pages

The SA return consists of a return and a series of supplementary pages. Different supplementary pages are issued, depending upon the type of taxpayer and the sources of income received.

Surcharge - applies to tax years 2009-10 and earlier. Superseded by Late Payment Penalties for tax years 2010-11 and later

A surcharge may be imposed when payment of SA liability is late. Surcharge arises for any SA year where liability is unpaid after the surcharge trigger date (STD). In the majority of cases the amount liable to surcharge will be the normal SA liability (payments on account and/or balancing payment) and the STD will be 28 days after the balancing payment due date.

Surcharge is imposed by a formal notice served on the taxpayer. Separate notices are normally issued for initial surcharge and for further surcharge. Where the issue of the surcharge notice is late, and the taxpayer is liable for both initial and further surcharge, the one notice is served. Only one year can appear on a surcharge notice.

The due and payable date for surcharge is 35 days after the surcharge is raised. An appeal can be made within 35 days of the date that surcharge was imposed. Interest is charged on late paid surcharge from the due date. A taxpayer, with genuine reasons for being unable to pay the SA liability, can avoid paying surcharge. To avoid a surcharge, a taxpayer must, by the surcharge trigger date make proposals that lead to an acceptable arrangement to pay the full liability in one or more instalments.

Surcharge trigger dates - applies to tax years 2009-10 and earlier

The surcharge trigger date is the date after which a surcharge can be imposed on unpaid SA duty. There are two surcharge trigger dates and these are

28 days after the due date (for an initial surcharge)
6 months after the due date (for a further surcharge)

A taxpayer who within 28 days of the due date provides proposals for payment of SA liability may avoid paying both initial and further surcharge. If proposals are received after the 28 day period but within 6 months of due date the taxpayer may avoid further surcharge. The 28 day period is designed to give taxpayers who realise they have insufficient funds time to submit proposals.

SVTSS

The Sharefishermen’s Voluntary Tax Savings Scheme (SVTSS) was set up in April 2000 for Sharefishermen in England, Wales and Northern Ireland.

When a Sharefisherman joins the voluntary tax deduction scheme he signs a mandate, provided by the Settling Agent, in favour of Barclays Bank. Settling Agents send the mandate to the Bank.

Twice a year, in January and July, Banking Operations arrange for payments to be transferred from the Sharefishermen’s bank accounts. Payments are transferred or collected by Direct Debit.

T

Tax deducted at source

Tax is deducted at source on any income that

Is taxed under PAYE
Is covered by subcontractor deductions
Arises from savings and / or investments for example interest or company dividends that are received net after deduction of tax

Taxable Incapacity Benefit

Incapacity Benefit is not always taxable. It is not taxable when

It is benefit paid in the first 28 weeks of incapacity, or
It is benefit payable for a period of incapacity which began before 13 April 1995, and for which Invalidity Benefit used to be payable

Taxpayer enquiry amendment

A Taxpayer enquiry amendment is made following the completion and closure of an enquiry into a return.

Where a Taxpayer enquiry amendment is adjusted the adjustment is described as an ‘Enquiry amendment on ….. (date’.

Taxpayer reference

The taxpayer reference must be one of the following

10 character UTR (Unique Taxpayer Reference) in the format 9999999999
First 8 characters of the NINO in the format AA999999
8 character temporary reference number in the format 99A99999

Taxpayer statement

Each taxpayer is issued periodically with a statement known as the Self Assessment Statement (up to June 2006 these were known as the Self Assessment - Statement of Account). The statement shows the current position on the taxpayer record. Note: A statement is created but it is not issued if the Statement Inhibited signal is set on the taxpayer record.

The statement can be a prompt or reminder to make payment.

Following the introduction of the Simple Statement in August 2006 the majority of statements are issued in this format, although a few are still issued in Open Item format.

Individual balances on charges and credits are added together to give a statement balance. The statement only includes a payslip where there is an amount to pay.

Taxpayer’s return profile

The taxpayer return profile is a record of the supplementary pages to be issued with the core tax return.

For the first year of SA the profile was determined from certain information held on the COP and CODA systems. In subsequent years the profile is updated following the capture of the return for the year.

For trusts and partnerships the profile is updated manually on receipt of the return.

Taxpayer’s self assessment

The taxpayer’s self assessment is the equivalent of the Total tax and NIC due entered on the return (box 18.3 for years up to and including 2006-07).

If you find an error or mistake in a return and it affects the taxpayer’s self assessment you may repair that return.

If the taxpayer has requested a Revenue Calculation the error or mistake to be repaired must be one that affects the equivalent figure in the Revenue Calculation.

TCN

Trade Classification Number. Each source must have a four number TCN as shown in the Trade Classification Index.

Technical Support System

A Technical Support System (TSS) is a local software application. TSS provide assistance with a range of regular everyday tasks that are performed frequently in a large number of offices.

These tasks are often related to one or more of the many existing mainframe systems. A TSS is a fast and effective way of supplementing mainframe facilities and supporting processes (for example, the calculation of chargeable gains) that with a mainframe system are largely clerical.

Temporary reference number

A temporary reference number is allocated to a taxpayer by the PAYE system when a record is set up and the NINO is not known.

Third party information

This is information about new taxpayers and about new and existing sources of income obtained from different sources.

The Centre for Research and Intelligence (CRI) located in Cardiff receives information obtained nationally.

The information is processed through the Datacapture and Datamatch systems and is made available to

FICO for its compliance work on the gross registrations schemes (TOBBI) to ensure investors are not registering for the scheme incorrectly
The Network through the bulk and individual profiles scheme

Information is also obtained locally by Local Offices.

Time to Pay

Any negotiated arrangement for payment over an agreed period that runs beyond the due date is known as Time to Pay (TTP).

Taxpayers who are unable to settle their liabilities may request to pay by instalments. Each request for an arrangement is considered and the taxpayer’s circumstances examined to see whether a TTP concession can be granted.

TTP is normally agreed on the understanding that adequate provision will be made to meet future liabilities on time.

Any recovery action that has commenced ceases when an arrangement is agreed. Statements continue to be issued and late payment interest is charged on all payments made after the due date.

Limited income pensioners (LIP) requesting TTP are given special consideration.

Note: The normal message asking for payment of the overdue amount is printed in TTP cases. The taxpayer should be told to ignore the message to pay in full. From February 1998 a ‘For information’ message is printed on statements.

TMA

Taxes Management Act.

Today’s statement

‘Today’s’ statement, also known as the current statement, shows the latest accounting information on the taxpayer record. Any credit or debit accounting movements recorded since the last statement was created (if any) are displayed.

Most of the current statement details you see will be considered for inclusion in the next computer created statement. Certain accounting movements displayed on screen in ‘today’s’ statement however will not be included in a created statement if that statement is created ‘today’.

A statement created ‘today’ shows a statement date of ‘today’ minus 1 day and does not include

Online movements, for example a transfer from OAS, recorded (‘Created’) ‘today’

Batch movements, for example, payments, recorded (‘Created’) with a date of ‘today’ minus 1 working day (see Note below)

The full amount of any accrued interest you see displayed. Accrued interest is only calculated to the statement date

Charges becoming due more than 45 days after the statement date. Note: The 45 day period is a parameter and can be varied.

Any payment credit or debit omitted from a statement created ‘today‘ is notified on the next statement.

Note: ‘Today’s’ batch movements will neither be displayed on screen nor will they appear on a statement created ‘today’.

Top slicing relief

Treating Chargeable Event Gains as income of one year takes no account of the fact the gains may have accrued over a number of years.

Top Slicing relief is a mechanism of reducing the rate of tax applied to these gains if the taxpayer is liable at higher rate when the gains are added to income, when normally the taxpayer would only be liable at the Lower rate and Basic rate if the gains were ignored.

Trade Classification Number

Each self-employment page submitted by a taxpayer has been previously associated with a trade classification number (TCN). However, from July 2014, the generic TCN 6616 will be used for all new cases set up in SA, apart from those who are CIS cases, who will be allocated TCN 3001.

Trading losses

Trading losses of this business for earlier years, which have not yet been set against profits chargeable to Class 4 NIC, may be brought forward and set against the Class 4 profits of the same business for the return year.

Transfer from OAS

Transfers from OAS are overpayments that arise on other Banking Operations accounting systems for a taxpayer, that are transferred to SA using OAS to clear part or all of the taxpayer’s SA liability.

Transferred to OAS

When an amount is transferred to OAS, a payment debit is posted to the taxpayer’s SA record immediately the function is successfully completed.

The corresponding payment credit does not appear in OAS until the batch process to update OAS records has run.

It will normally be the following day that the corresponding credit posting can be viewed on OAS records.

Transitional Overlap Relief

Transitional Overlap relief arises where a business with an accounting date other than 5 April and which commenced on or before 5 April 1994 continues after 5 April 1997.

It is calculated by reference to the profit in the period between the end of the basis period for 1996-97 and 6 April 1997.

The relief is given as a deduction from the profits in a later year when the business ceases or changes it’s accounting date.

Trust types

There are two types of trust

Non-Discretionary trust - a trust in which the trustees do not have discretion to accumulate or pay income
Discretionary trust - a trust in which the income may be accumulated or paid at the discretion of the trustees or any other person

Trustee (Insolvency)

The trustee in a bankruptcy may be the Official Receiver or an insolvency practitioner appointed by the creditors.

The main functions of a trustee are to

Realise the bankrupt’s assets to the best advantage of creditors
Collate the proofs of debt received from each creditor
Distribute the proceeds from the disposal of the bankrupt’s assets to the creditors

The trustee is required to keep detailed accounts of all transactions.

TSS

A Technical Support System (TSS) is a local software application. TSS provide assistance with a range of regular everyday tasks that are performed frequently in a large number of offices.

TSS statement

In most cases, you can both view and print a copy of either ‘Today’s’ statement or a previously issued Open Item Statement of Account by using the facility in LFC2000.

Note: From August 2006 the majority of statements are issued in Simple Statement format. You can only produce a copy of a statement issued in this format from View Statement in the online service SA View L & P. A copy of a statement issued in Simple Statement format produced using the TSS Statement facility will be in Open Item format.

Unlike a screen print, the TSS Statement design reflects as far as possible the layout of a printed Open Item statement. This makes it far more user friendly for taxpayers and their advisors than a screen print.

The TSS Statement automatically includes the taxpayers or agent’s name and address details so that the statement can be issued in a window envelope. It also includes a 2 line ‘free text’ space for you to enter appropriate notes.

TTP

Any negotiated arrangement for payment over an agreed period that runs beyond the due date is known as Time to Pay (TTP).

TTP is normally agreed on the understanding that adequate provision will be made to meet future liabilities on time.

Normal course of action is suspended during the period of the arrangement but late payment interest is charged on all payments made after the due date.

Limited income pensioners (LIP) requesting TTP are given special consideration.

U

Unallocated amount

An amount is classed as unallocated if it has not been used to satisfy a liability. This may be because the amount paid exceeds the charge or the payment is received more than 45 days before a charge is due.

Note: The 45 day period is a parameter and can be varied.

Any amount that was allocated to an interest charge that is discharged in full or in part is similarly treated as unallocated.

No repayment supplement is calculated when an unallocated amount is subsequently allocated or repaid.

Uncertificated subcontractors

The 1995-96 assessment was used as the basis for calculating 1996-97 payments on account. Before calculating payments on account the 1995-96 liability was reduced by any deductions at source.

In the case of an uncertificated subcontractor whose 1995-96 liability was fully or partly covered by an SC60 tax credit, the SC60 credit was not reflected in the 1995-96 assessment. Instead, the subcontractor obtained credit for the deductions by set-off.

Set -offs were not identified by the computer during conversion when the majority of 1996-97 payments on account were set up. As a consequence the amounts set up may have been excessive. Section ‘Amend payments on account’ explains how to amend excessive payments on account.

Uncleared payments

To minimise premature repayments there will be a period of inhibition (to be considered clerically) before a repayment can be made. The inhibition period will be 14 days and includes all payments.

Unique Taxpayer Reference (UTR)

A Unique Taxpayer Reference (UTR) is a unique set of 10 numerals allocated automatically by the computer when a taxpayer is set up.

Update access

Update access to a function depends on whether

Your Organisation Unit is the responsible office for the taxpayer’s SA record
You have been allocated the relevant user role.

If you have update access you will be able to update the taxpayer’s record using this function.

Any clerical work for which update access is not available should be referred to the appropriate operator (or Organisation Unit).

Unsatisfactory return

An unsatisfactory return is a return that fails to satisfy the filing requirement of Sections 8 and 8A TMA1970 as stated in the 'Notice to File'.

Section 8 TMA1970 requires that returns provide information reasonably required for the purpose of establishing the amounts in which a person is chargeable.

User role

A user role reflects a particular job, and will determine the functions that you can use to perform that job.

Each office is allocated those user roles, and the functions associated with those roles, that are necessary to perform its business.

Your office manager will allocate the user roles you need to perform your job.

You can be given any number of user roles, depending on the activities that you are expected to perform.

V

Very Late Return

A return which has been filed 12 months or more after the filing date.

View access

View access to a function depends on whether you have been allocated the relevant user role.

Update access to a function depends on whether

Your office is the responsible office for the taxpayer’s SA record
You have been allocated the relevant user role

Any work for which you do not have update access should be referred to the operator or office that has this access.

Voluntary Arrangement (VA)

A Voluntary Arrangement (VA) enables a debtor to come to a formal agreement with creditors regarding payment of debts. Proposals are prepared

By an insolvency practitioner called the Nominee, or, exceptionally if the individual is already bankrupt
By the Trustee in bankruptcy

Whilst the proposals are being prepared a debtor may obtain an Interim Order from the Court temporarily preventing proceedings being continued or commenced whilst the Interim Order is in force.

W

WTC

Welsh Translation Unit.

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SAM001 - Glossary of terms

Glossary of terms

A

Abroad

Accruing interest

Active responsibility

Additional surcharge - (applies to tax years 2009-10 and earlier)

Adjustment to a determination

Advance payment

Agent

Agent Identity

Agent Maintainer

Alleged payments

Allowable expenses

Amounts becoming due

Appeal

ARP

ARP archive system

Arrangement started

Ascending Value List

Aspect enquiry

Associated serial number

Authorised repayments

Automatic move

Automatic Payment Allocation

Automatic Remittance Processing

Automatic Selection Process

Available amount

AVL

Award of Sequestration (Scotland)

B

BACS

BACS recall

Balancing charge

Balancing charge credit

Balancing charge debit

Balancing payment

Balancing payment due date

Bank Giro

Banking Operations receipts reconciliation

Banking Operations systems

Bank lodgement adjustment (BLA)

Bankruptcy

Bare trust

Base address

Individual

Trust

Partnership

Company

Personal representative

Basis period

Batch function

Batch process

Batch update

BLA

BROCS

Budget payment plan

Business address

Business name

BY

BY order

C

Cancelled repayments

Capacity

Capacity address

Capacity role

Cash payments

Certificates of Tax Deposit

CESA

CFC

Change of address by A&PS

CHAPS

Charge

Charge amendment

Charge origin

Charge type

Check later

Cheque codeline

Cheque data