SolvedCOM71094 | Enquiries: CTSA enquiries: closing an enquiry non-contract settlement helpcard for caseworkers
From HM Revenue & Customs · COTAX Manual
If you are a caseworker and are ready to ask a COTAX operator to close an enquiry in a non-contract settlement case, consider steps 1 - 11 below. The guide is presented as follows.
| Action | Steps |
|---|---|
| General guidance | Step 1 |
| Initial actions | Steps 2 - 6 |
| The conclusion of the enquiry does not lead to an amendment of the self assessment | Steps 7 - 8 |
| There is a jeopardy amendment on the AP | Step 9 |
| The return was made for the wrong period | Step 10 |
| Action needed on Caseflow | Step 11 |
General guidance
1. You must:
give the COTAX operator clear and full instructions on the entries required on the closure notice
advise them of any other action they need to take
Initial actions
2. Does the conclusion of your enquiry mean the self assessment figures need to be amended?
If yes, go to step 3.
If no, go to step 7.
3. Is there a jeopardy amendment on the Accounting Period (AP)?
If yes, go to step 9.
If no, go to step 4.
4. Have you decided that the return under enquiry has been made for the wrong period?
If yes, go to step 10.
If no, go to step 5.
5. Was a taxpayer amendment received during the course of the enquiry?
If yes and it was received within the time limit for the company to amend its return, make sure the amendment is included in the figures you give to the COTAX operator in step 6.
If no taxpayer amendment was received or it was received outside the time limit so it cannot be actioned, go to step 6.
6. Give the COTAX operator full details of the figures to include in the closure notice and the actions they must take as a consequence of the closure. Show:
the entries to be amended and the amounts to be included
the amount of CT chargeable you expect to be calculated as a result of the amendments
whether the revenue amendment will affect any penalties and if so, whether the operator should allow them to be issued automatically
The conclusion of the enquiry does not lead to an amendment of the self assessment
7. Do not ask the COTAX operator to issue a closure notice through COTAX as the wording on the output is incorrect in this situation.
8. Arrange for a manual closure notice to be issued. See EM3871 for full guidance on issuing a manual closure notice in these circumstances. The closure notice must:
say that you have completed your enquiry
state your conclusions, taking into account any deferred taxpayer amendment
amend the return to give effect to the conclusions stated in the notice
There is a jeopardy amendment on the AP
9. An enquiry cannot be concluded by the issue of a jeopardy amendment even if the figures in the closure notice will be exactly the same as in the jeopardy amendment:
if there is no appeal against the jeopardy amendment, instruct the COTAX operator to issue a closure notice with revenue amendment as normal
if there is an appeal against the jeopardy amendment, your instructions must tell the COTAX operator how the appeal is to be determined
The return was made for the wrong period
10. Ask the COTAX operator to amend the company’s Accounting Period (AP) record, giving them the following information:
the AP to be superseded
start and end dates for the required APs
the return to be unlogged
the AP onto which the return should be logged and captured
give the COTAX operator any further advice they need to successfully carry out these actions then go to step 6
Action needed on Caseflow
11. If your office uses Caseflow, the enquiry must be closed on the appropriate system:
if the COTAX operator has access to the appropriate system, tell them what entries they need to make
if the COTAX operator does not have access to Caseflow, make the appropriate entries
For further guidance, see: