Self Assessment Manual

SAM31052 - Compliance: enquiry work: discovery: recording and settling ITSA discovery check cases

Overview

CQI Workbench is no longer in use. All compliance work, including Income Tax Self Assessment (ITSA) discovery assessments, must now be recorded and managed in Caseflow or other relevant case management systems.

This Action Guide explains:

• how to set up a record on Caseflow or other relevant case management system, where you are making investigations under the discovery provisions
• the actions you must take on SA systems when recording and settling ITSA discovery cases managed in Caseflow

When you are creating or settling an ITSA Discovery record, follow steps 1 - 10 below. The guide is presented as follows:

Setting up the ITSA Discovery record - Steps 1 - 4
Settling the case - Steps 5 - 8

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

Setting up the ITSA Discovery risk

1.  Recording the discovery risk in Caseflow

You must record all ITSA discovery work in Caseflow, including:

• creation of the case (where required)
• creation or update of the relevant complaince risk
• recording discovery-related activity, adjustments and correspondance

Detailed guidance for creating, working, settling and closing ITSA complaince checks is available on the Customer Compliance Guidance Hub. 

2.  Use SA function AMEND TAXPAYER SIGNALS to enter ‘Y’ in the No Repayment field.

If the discovery relates to a partnership, you must set the No Repayment signal on each partner's SA record.

3.  Use SA function MAINTAIN RESPONSIBLE OFFICE to enter 'N' in the Automatic Move field.

For partnership cases, apply this to each partner's record.

4.  Use SA function MAINTAIN SA NOTES to both:

• indicate the year(s) for which discovery action is being taken
• provide a brief reason

Note: Discovery cases do not display an "Enquiry Case" message in common SA functions. 

Settling the case

Once either:

• a contract has been agreed
• the appeal period following issue of discovery assessments has ended
• any appeal has been determined

5.  Complete settlement activity by following the relevant Settlement and Closure guidance on the Customer Compliance Guidance Hub.

6.  After settlement, use SA function AMEND TAXPAYER SIGNALS to change the No Repayment field to 'N', unless a valid reason exists to inhibit automatic repayment.

7.  If the discovery involved a challenge to the original status claimed, even where the outcome is unchanged:

• use VIEW TAXPAYER DESIGNATORY DETAILS
• enter 'Y' or 'N' in the Residence box as appropriate

Record the date the UK domicile decision was made in the Date Domicile Set. 

8.  Use SA function MAINTAIN RESPONSIBLE OFFICE to change the Automatic Move field to 'Y', unless a reason exists to inhibit automatic moves.