SAM121141 - Returns: individuals returns: voluntary (unsolicited) returns: individuals (Action Guide)

If you receive an unsolicited return or information which purports to be a return, follow steps 1 - 19 below. For details of how to access the SA functions, select ‘Index Of Functions’ on the left of the screen.

This guide is presented as follows

Where a return is received for an out of date year - (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
Where a return involves a nominee identified as a ‘high-risk’ agent - (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
Where a return meets the criteria for referral elsewhere - (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
All other cases - Steps 12 - 19

Where a return is received for an out of date year

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

Where a return involves a nominee identified as a ‘high-risk’ agent

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

Where a return meets the criteria for referral elsewhere

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

All other cases

12.  Set up or re-activate an SA taxpayer record if you think the case is appropriate to SA in the normal way. If the case includes employment, pension or social security and the liability can be dealt with through NPS or simple assessment, then do so once clarified with the taxpayer/agent. If the SA criteria is fulfilled, the case should be reactivated or a record set up and the return processed within SA. For information on setting up a taxpayer record see section ‘Set Up Taxpayer’ (SAM100000 onwards); for information on re-activating a dormant record see section ‘Maintain Taxpayer Record’ (SAM101000 onwards)

Note: Where the voluntary return includes self employment, follow the guidance at SAM100020 to notify the Central Agent Authorisation Team (CAAT), so Class 2 NIC issues can be addressed

13.  Consider whether there has been a potential Failure to Notify chargeability and, if so

  • Use function ADD / AMEND ANNUAL COMPLIANCE DETAILS to set the Mandatory Review signal (category ‘FTN’) on the SA record

14.  Where the information received purports to be a return but which is not in the proper form and which lacks a proper declaration, write to the taxpayer (copy to the agent where the information has come from the agent), explaining

  • The information given cannot be treated as constituting a return since it falls short of the requirements, and
  • That you are enclosing an official return for completion, then
  • Use function RECORD DATE OF CLERICAL ISSUE to record the date of issue of the return. The date recorded should be the same as the date on your letter

15.  Where the voluntary return is in the proper form, use function LOG RETURN to record the date of receipt on the SA record

16.  A notice to file a return is treated as having been given on the date a voluntary return is received by HMRC. The filing date is

  • For a paper return: 31 October following the end of the tax year unless the return is received after 31 July following the end of the tax year in which case the filing date is 3 months after the date it was received
  • For an online return: 31 January following the end of the end of the tax year unless the return is received after 31 October following the end of the tax year in which case the filing date is 3 months after the date it was received

17.  Use function CAPTURE RETURN to capture the return details

18.  If the return is received after 31 January and failure to notify does not apply, notify the Review Interest Network Officer (RINO) that the relevant date for payments should be deferred

Note: Deferring the relevant date for payment will prevent interest being charged from the original due date. However, it will not prevent a late payment penalty being charged

When a due date is deferred, the Time To Pay (TTP) signal should also be set to prevent the imposition of the late payment penalty. The TTP start date should be set to the day before the existing late payment penalty trigger date and the TTP end date set to 30 days after the deferred due date for interest purposes

Note: If failure to notify applies, the due date for payment will remain as 31 January and payments on account for the following year will also remain as 31 January

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