SAM124021 - Returns: view and amend return: amended returns where allowances transferred to spouse or civil partner (Action Guide)

Follow steps 1 - 10 below in cases only where an amended Individual’s return is received and

  • There is a cross in the box which shows that the taxpayer wants to transfer surplus allowances

And

  • Exceptionally the surplus is reduced and will not be withdrawn from the spouse or civil partner

(For all other cases where the surplus is unchanged, or increased, or reduced and the difference will be withdrawn from the spouse or civil partner, a work item will be entered as TRANSFER OF ALLOWANCES on the ‘Returns Review’ Work List. See SAM125200.)

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

1. Abort function AMEND RETURN

2. Manually calculate the revised liability. Use the full tax calculator on SEES to do this

3. Prepare a manual Tax Calculation for issue in a Revenue Calculation case or where you have repaired a Self Calculating taxpayer’s return

4. Use function CREATE RETURN CHARGE to enter the revised liability on the taxpayer’s record

5. Issue the Tax Calculation to the taxpayer with a copy to the agent where form 64-8 is held

6. Make a prominent note on the return of the reason why you have used function CREATE RETURN CHARGE to deal with the amendment

Note: As you have used function CREATE RETURN CHARGE the amended return information will not be displayed in function VIEW RETURN. You can only view the revised liability in function CREATE RETURN CHARGE or VIEW STATEMENT

7. Update the return profile with details of any new supplementary pages that have been returned using function MAINTAIN RETURN PROFILE

8. Use function VIEW STATEMENT where a repayment has been claimed on the return to establish

  • Whether the taxpayer’s SA record shows a credit balance. If not write to the taxpayer and explain why a repayment is not due
  • Whether any charges are due within the next 45 days. If so, and these reduce / eliminate the repayment claimed, contact the taxpayer and explain why a (full) repayment is not appropriate at this time
  • When payment was processed (posting date). If this falls within the last 14 days the payment is an uncleared payment. B/F the papers until the 14 day period has elapsed and review the claim again

Note: Where the most recent payment is a transfer from OAS then repayment can be dealt with immediately

9. Use function ISSUE REPAYMENT FROM OVERPAID BALANCE to make the repayment to the taxpayer, agent or nominee

10. Check the amended return along with the SA record for any of the following 6 situations. Where the taxpayer has made a claim to reduce payments on account see section ‘Claim to adjust payments on account’ (SAM1000 onwards)

  • Select ‘Action 1’ and so on, in the right hand column to find out the actions you need to take in each situation
Situation Action
LU (Liability Unlikely) set on the record and as a result of the amendment Tax and / or Class 4 NIC liability arises (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
The amendment is of a date a business ceased not previously notified (box 7 on the Self Employment (full) supplementary page SEF1 or box 6 on the Self Employment (short) supplementary page SES1) (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
The amendment is of a date the taxpayer ceased to be a partner in a business not previously shown (box 4 on the Partnership (full) supplementary page PF1 and on the Partnership (short) supplementary page PS1) (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
An underpayment of less than £3000.00 arises and the taxpayer has not entered an ‘X’ in the box on the original or amended return to show that the underpayment is not to be coded (box 2 of the Finishing your Tax Return section of the core return page TR6) (This content has been withheld because of exemptions in the Freedom of Information Act 2000)