SAM125160 - Returns: returns work lists: w049 short tax return rejections

A work item is created and entered on the ‘Short Tax Return Rejections’ work list when full capture of a Short Tax Return (SA200) by Automated Data Capture (ADC) has not been possible because

  • A return contains errors and fails the validation checks in ADC

Or

  • A return requires a ‘Credibility Check’ (formerly ‘Sanity Check’) to be carried out

Or

  • PAYE underpayments figures are missing from automatically populated boxes

The reason for entry will be shown on the list as one of the following

  • ‘Return contains error messages’
  • ‘Sanity Check’
  • ‘PAYE underpayments figures missing’

Work items can be filtered and sorted by reference to the ‘Reason for Rejection’.

The ‘Short Tax Return Rejections’ work list is allocated to the Clerical Processing Officer in the office with processing responsibility. This work list is for immediate action.

Note: Work list entries not dealt with by the time limit (4 years after the end of the tax year, for example for 2011-2012 this will be 5 April 2016), cannot be deleted from the list after the time limit has passed. The use of function CREATE RETURN CHARGE to record the return charge will not clear the work item. Therefore, where the time limit is imminent, you must ensure that you work the work list entries for that year before that date or the entry will remain on the work list permanently.

To assist in the review of the work item, a part captured return and a scanned image will be available for all work items on the work list.

The remainder of this subject is presented as follows

Part captured return

Although the work list item will remain, the part captured version of the return from the work list will only be available for 60 days. After 60 days it will be deleted and you will have to recapture all the information from the scanned image. There will be no prompt to indicate that the part captured return will be deleted.

However, the work list can be filtered on ‘Entry Date’ to identify any cases where this may happen. Work items will also be created on the ‘Returns Not Captured’ work list for any returns not captured after 45 days.

Scanned image

The scanned image created for a case on the work list which has not been worked within 60 days, will cease to be available once the return has been captured through LDC. Prior to capture, you should therefore

  • Print a copy of the scanned image
  • Re-log and batch the printed copy of the scanned image so that a batch identifier is created for this printed version of the scanned image

Following capture, you should retain the printed copy of the scanned image together with other returns in the same batch.

Note: If this procedure is not followed, you will be unable to subsequently view the scanned image after capture through LDC. In order to deal with subsequent customer contact it may therefore be necessary to obtain the original paper version of the return; this should be avoided wherever possible.

The work item is automatically deleted when you

  • Fully capture the return in Local Data Capture (LDC)

Or

  • Enter the liability using function CREATE RETURN CHARGE

Or

  • Unlog the return

While carrying out the review of the work item you should also, in relevant cases

  • Review the indicators on the PAYE record
  • Check the amount of tax already refunded for the year of the return (box 12.7)
  • Check the amount of National Insurance Benefits
  • Check that either box 11.1 (claim for full Married Couple’s Allowance) or box 11.2 (allocation of minimum amount) has been completed. The taxpayer should make an entry in only one of these boxes
  • Check that a BACS repayment can be made using the information given (unless box 12.6C has already been ticked during part capture to indicate that any repayment will automatically be issued to the taxpayer)

And

  • Update the code, where required, using all relevant information the taxpayer has supplied on the return

Return contains error messages

Certain messages which direct you to the relevant box or boxes for correction are displayed when you select the [Calculation] button within function CAPTURE RETURN. Deal with each error message in turn and fully capture the return.

In other cases, where some information received from ADC has been corrupted, the error message displayed will be ‘You must view the Short Return image before correcting this error’. In these cases you must compare every box on the scanned image with boxes on the part-captured return and make corrections, not repairs, and fully capture the return.

Credibility Check. (Formerly known as ‘Sanity Check’)

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

You should view the part captured return and follow the PT OPs Action Guide W049- Short Tax Return Rejection for action to take to deal with the worklist entry. Further information is available on this item in subject ‘Credibility Check’ (SAM121430).

PAYE underpayments figures missing

During the ADC process, where a return includes employment or non-state pension details, boxes 2.6A and 2.6B will normally be automatically populated by figures extracted from PAYE. Where the information held on PAYE is 0 (zero), then the computer will show 0 (zero) in the relevant box.

An entry will be made on the ‘Short Tax Return Rejections’ work list if

  • An underpayment has been included in the code for the return year or a later year but the computer has not been able to extract the amount from PAYE

Or

  • A record is not held in the database of these underpayments. Note: This would suggest the SA signal is not set on the PAYE record and should be checked when reviewing the case

In both cases you should check the taxpayer’s record so that the underpayment is taken into account in the calculation, and also ensure that the correct PAYE/SA link is in place.