SAM121430 - Returns: individuals returns: credibility check

When a return is initially captured and results in a large overpayment or large liability, the capture operator will be required to carry out a ‘Credibility Check’ to review the tax position to determine whether any return entries have been incorrectly captured.

A warning message is displayed whenever ‘Full Capture’ is selected and the relevant limits are exceeded. Certain actions are required in order to reconcile why the large overpayment or liability has arisen.

You may identify that the figures submitted on the return in respect of Pay, Tax, Benefits, accounting information (FIN 1, CAL 7 and CAL 8) or in the additional information box differs from those held on our systems. Where you identify such a case you can correct the by following guidance for `Repairing obvious errors’ at SAM121530.

Checks required

Initially, a check should be made to ensure that the information entered is the same as that shown on the return. Also, any differences should be reconciled where the taxpayer or agent has provided their own calculation in boxes 1 and 2 of the Tax Calculation Summary page TCS 1 on the core return, or in supplementary information.

If those actions do not reveal any capture errors have been made (using the information contained within the return), the calculation should be checked and an attempt should be made to reconcile why the large liability or overpayment arises.

Where an unexpected under or overpayment is shown, you should review the information held on our systems and use it to correct the appropriate return boxes. Note: Whenever a correction of this nature has been made, the customer and the agent if a valid 64-8 is held, must be notified in writing using SEES letter SA806. For further information, refer to the Action Guide for Paper Return Validation and Data Capture.

Note: Excessive time should not be spent on reconciliation where the answer is not easily identifiable. No contact should be made with the taxpayer or agent, and no other action taken which may prejudice any potential Section 9A enquiry.

Results of the check

Where the figure can be reconciled and the tax position is considered satisfactory, the [Checks Completed] button should be selected, the subsequent confirmation screen should be noted, and capture of the return should be completed.

Note: You are not expected to check every entry on the return against the information held on our systems. Where a comparison with the information held on our systems does not explain the result of the calculation, and the answer is not easily identifiable, you should not spend excessive time on reconciliation. No contact should be made with the taxpayer or agent, and no other action taken which may prejudice any potential Section 9A enquiry.

Note: The [Checks Completed] button will not be available until the calculation has been viewed by selecting the [View Calculation] button. This also applies where changes are made following the warning and full capture is again attempted.

Where the figure cannot be reconciled and the tax position is not considered satisfactory, the [Check Return] button should be selected, the return should be part-captured, and the case should be referred to your line manager.

Line manager’s review

If, following the review, the figure can be reconciled and the tax position is considered satisfactory, the line manager should select the [Checks Completed] button, the subsequent confirmation screen should be noted, and capture of the return should be completed.

If, following the review, the figure still cannot be reconciled and the tax position is not considered satisfactory, the line manager should select the [Checks Completed] button, the subsequent confirmation screen should be noted, and capture of the return should be completed.

Recording of the check

Once the ‘Credibility Check’ has been completed and the return has been fully captured, the Pay Identity number (PID) of the individual completing capture of the return is recorded on the Summary Information screen, within function VIEW RETURN. This acts as a signal to confirm that the check has been completed. The PID may be that of the initial processor or line manager, dependent on how the check is completed.

Where the check is not required because amounts do not exceed the relevant limits, the Summary Information screen signal for the check will remain blank.