SAM100221 - Records: set up taxpayer record: set up individual record (Action Guide)

When you want to set up an SA record for an individual (including a partner), consider the 21 steps below. The guide is presented as follows

Initial action - Steps 1 - 5
Setting up an SA record - Steps 6 - 13
Particular circumstances - Steps 14 - 21

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

Initial action

PAYE taxpayers only

1.  If you are considering bringing a PAYE taxpayer into SA

  • Establish whether the PAYE record holds
  • The SA indicator and Unique Taxpayer Reference (UTR) (live SA record exists)
  • A UTR only (a dormant SA record exists)
  • Neither the SA indicator nor a UTR (that PAYE record has not been linked to an SA record)
  • Reactivate the record if a dormant SA record exists, using function AMEND TAXPAYER SIGNALS. The Action Guide ‘Maintain taxpayer record: dormant records: re-activating a dormant record’ (SAM101093) gives detailed advice

The PAYE Service is notified at the point at which an SA record is set up for a customer (This automatic linking process can take up to 3 days). An SA start year is automatically added by converting the start date into the current year. Note: Particular attention should be given where an SA record is being set up for a year other than the current year. In these cases, the SA start year on NPS should be amended. To do this, follow the guidance at PAYE93032

  • Check Reconciliation Summery to see whether any of the years you are issuing a return for have been reconciled and, if so, follow the instructions at PAYE93005

Only when you are satisfied that an SA record does not exist should you set up a new record.

In all cases

2.  If the taxpayer has a new trading source, obtain completed form CWF1. SAM100130 tells you about the procedure or see SAM100135 / SAM100136 where form SA400 / SA401 / SA402 is completed or see SAM100131 where form SA1 is completed. All forms CWF1, SA400, SA401, SA402 and SA1 (apart from a few exceptions) are dealt with by the Central Agent Authorisation Team (CAAT)

3.  Check whether or not form 64-8 is held. If so, you will need this when setting up the SA record

4.  Establish whether an SA record already exists

  • If a UTR is shown, an SA record exists
  • If a PAYE record is displayed, view the PAYE record. If a UTR is shown, an SA record exists

5.  Use TBS function FIND TAXPAYER to trace the taxpayer’s national insurance number (NINO) and confirmation of other interested areas

Note: You must ensure all years are reconciled on NPS before the case is set up in SA. Where you find an SA record already exists, you must not set up a new record

Setting up an SA record

6.  Having satisfied yourself that an SA record does not exist, to set up the SA taxpayer record, use function SET UP INDIVIDUAL TAXPAYER. Entries to designatory fields must be made in UPPER CASE. The minimum information required is name, address, postcode and verified NINO. If there is a current PAYE primary source record, a link will be created automatically between the SA record and the PAYE record

Note: The SA record should be set up in the appropriate OUID. For further information, refer to the list of Current SA Processing OUID’s 

Note: records can be set up using role Clerical Processing Officer (CLPO)

7.  Consider whether a ‘Welcome’ letter should be issued to the taxpayer. If you wish to inhibit the automatic issue of the letter set the ‘SA Entry / Exit Letter Inhibited’ signal

8.  If there is a communication address, use the Set Up Communication screen within function SET UP INDIVIDUAL TAXPAYER before using function MAINTAIN RETURN PROFILE

9.  If there are capacity details, use the Set Up New Capacity screens within function SET UP INDIVIDUAL TAXPAYER before using function MAINTAIN RETURN PROFILE

Note: If you are adding the capacity details after the SA record has been set up, you must use TBS (Taxpayer Business Service) function AMEND CAPACITOR DETAILS to ensure the capacitor details flow across to SA.

10.  Use function MAINTAIN RETURN PROFILE to record the supplementary pages to be issued with the basic return

11.  Make an SA note in all cases to show the reason why the case is in SA

12.  If today’s date is after the automatic selection process for returns issue on 6 April next has run, or you need to issue a return for CY-1 (except in a Failure to Notify case at step 13)

  • Use function RECORD RETURN REQUEST to
  • Select the relevant year for automatic issue of a form SA316 (Notice to file)
  • Indicate whether or not Failure to Notify applies in a CY-1 return case

Note: In non-resident company landlord cases, you must issue form SA700 manually (see SAM100120)

More detailed advice on return issue is given in subject ‘New Commencement Cases’ (SAM120070)

13.  If the case is a failure to notify case the CWF1 / SA400 should be processed by CAAT and a copy of the CWF1 / SA400 sent to the FTN section of the HERT team

Particular circumstances

14.  Where there is an agent acting

  • Use function TAXPAYER NEW AGENT DETAILS to establish the national agent code and enter it on the taxpayer record
  • Advise the agent of the UTR allocated to the individual SA record by manually issuing a welcome letter (SA250) regardless of when the agent is added to the SA record
  • Check the National Insurance and PAYE Service (NPS) record and if there is an agent acting, enter the agent details on SA

15.  Where the individual is in receipt of income not classed as a trade, for example interest and income from land or property - including moor land, rental income or furnished lettings, make a note of the details of the source in ‘Free format Notes’ using function AMEND TAXPAYER SIGNALS

16.  Where the individual taxpayer has trading profits including profit from a profession or vocation (Note: This excludes a partnership trade source, which must be set up on the partnership record)

  • Use function SET UP TRADE, once for each trading source you want to set up. If the taxpayer has more than one trade / partner source, set up the main source first. Alternatively, where the SA record is not linked to PAYE, you can access function MAINTAIN SOURCES to nominate the main source
  • If the source is within the construction industry
  • Use function MAINTAIN COMPLIANCE SIGNALS to enter on the SA record the nature of the taxpayer’s involvement in the construction industry
  • Issue form P510 to the relevant PAYE office / section, if the business has employees

17.  Where the taxpayer has a partner source using information from SA401 / SA402

  • Use function SET UP PARTNER, once for each partner source you want to set up (this creates a link between the individual taxpayer record and the partnership records)
  • And where the SA record is not linked to PAYE
  • Use function MAINTAIN SOURCES to nominate the main source, if the taxpayer has more than one trade / partner source and you did not set up the main source first

18.  Where the taxpayer has asked for correspondence to be issued to an address different to his or her base address, for example the business address

  • Use function ADD/AMEND COMMUNICATION NAME AND ADDRESS

19.  Where the taxpayer is responsible for operating Class 1 NIC on a DC source of PAYE income, ask the Employers Section to

  • Open a Direct Collection (Employee Only NIC) scheme (DCNI)

20.  Where the record is for a non-resident company landlord set the Non-Resident Company Landlord signal to ensure that the return SA700 is issued automatically (see also step 12 above)

21.  Where the taxpayer has indicated the requirement for special output, set the relevant signal that is Audio, Braille or Large print. For Welsh Language cases only, contact HMRC Welsh Customer Service, HM Revenue & Customs, Thedford House, High Street, PORTHMADOG, LL49 9BF. Telephone 0300 200 1900 WAM BOX 906