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SAM101042 | Records: maintain taxpayer record: criteria for auto removal of cases from SA using CY-1 return

From HM Revenue & Customs · Self Assessment Manual

When a CY-1 Return is captured, the computer system will identify cases suitable for removal from SA. It will do this by comparing the CY-1 tax return with the specified criteria set out below.

Where the taxpayer is eligible for removal from SA, and an overpayment is due, if there are entries in either box 7 (State Pension) or Box 10 (Pensions other than state pension) and there is also an entry in Box 1 (Taxed UK Interest), exit letter SA251(pen) (an exit letter specifically worded to advise how to claim future repayments on bank/building society interest) will be issued.

Include in review

Those taxpayers completing the core return and

  • Any Self Employment pages and/or Partnership pages, and/or IFP pages as long as they all have a ceased date

  • Capital Gains pages where total proceeds (boxes C18/CG19 plus CG25 + CG31) are less than £200,000

Exclude from removal where

  • Any supplementary page completed (apart from the Employment pages, Self Employment and Partnership, IFP, CG)

  • Where High Income Child Benefit Charge is applicable

  • Individuals making entries in the following box numbers

Employment pages

* Box 6 page E1 and E2 (Director of a company) unless there is an entry in box 6.1 for all instances
* Box 7 page E1 and E2 (Director of a company and it was a close company)

Additional Information pages

* Box 3 on page Ai 2 (Community Investment Tax Relief)
* Box 5 on page Ai 2 (Qualifying Loan Interest payable in the year) amount exceeds £50,000
* Box 11 on page Ai 2 (Seafarers Earnings Deduction)
* Box 12 on page Ai 2 (Foreign earnings not taxable in the UK)
* Boxes 7 to 20 on page Ai4 (Pension & Savings Tax Charges section)

For tax years up to 05/04/16

Core return

  • Where income exceeds £2500 for any (separately unless stated) of the following box entries

    • Box 2 of the Income section page TR 3 (Untaxed UK interest)

    • Box 17 of the Income section page TR 3 (Other taxable income - amount before tax

  • Where gross income exceeds £10,000 for the total of all following box number entries

    • Box 1 of the Income section page TR 3 (Taxed UK Interest (Grossed up))

    • Box 3 of the Income section page TR3 (Dividends from UK Companies (Grossed up))

    • Box 4 of the Income section page TR3 (Other Dividends (Grossed up))

    • Box 3 of the Other UK income section of the Additional information page Ai 1 (Interest from gilt edged and other UK securities, deeply discounted securities and accrued income profits)

    • Box 12 of the Other UK income section of the Additional information page Ai 1 (Stock dividends from UK companies (Grossed up))

    • Box 13 of the Other UK income section of the Additional information page Ai 1 (Non-qualifying distributions and loans written off - taxable amount)

  • The total of the following reliefs exceed £40,000 in the following box number entries

    • Box 1 to box 4, page TR4 (Paying into registered pension schemes and overseas pension schemes)

    • Box 8 of the UK pensions, annuities and other state benefits received section page TR3

    • Box 3 of the Finishing your return section, page TR6, is ticked

From 06/04/2016

Where income exceeds £2500 for the following box entry

  • Box 17 of the Income section page TR 3 (Other taxable income - amount before tax

Where gross income exceeds £10,000 for the total of all following box number entries

  • Box 1 of the Income section page TR 3 (Taxed UK Interest (Grossed up))

  • Box 2 of the Income section page TR3 (Untaxed Interest)

  • Box 3 of the Income section page TR3 (Untaxed foreign Interest)

Where gross income exceeds £10,000 for the total of all following box number entries

  • Box 4 of the Income section page TR3 (Dividends from UK companies (Grossed up))

  • Box 5 of the Income section page TR3 (Other Dividends (Grossed up))

  • Box 6 of the Income section page TR3 (Foreign Dividends)

  • Box 3 of the Other UK income section of the Additional information page Ai 1 (Interest from gilt edged and other UK securities, deeply discounted securities and accrued income profits)

  • Box 12 of the Other UK income section of the Additional information page Ai 1 (Stock dividends from UK companies (Grossed up))

  • Box 13 of the Other UK income section of the Additional information page Ai 1 (Bonus issues of securities and redeemable shares and close company loans written off or released)

The total of the following reliefs exceed £40,000 in the following box number entries

  • Box 1 to box 4, page TR4 (Paying into registered pension schemes and overseas pension schemes)

  • Box 8 of the UK pensions, annuities and other state benefits received section page TR3

Box 3 of the Finishing your return section page TR6, is selectedEmployment pages

Employment pages

  • Where income exceeds £2500 for the following box entry

    • Box 3 (Payments not on P60 etc. - tips and other payments)

    • Box 19 (Professional Fees & Subscriptions)

  • Where the total of box number entries 17*, 18\* and 20** exceeds £2500

*17 (Travel and subsistence costs)

**18 (Fixed deductions for expenses)

***20 (Other expenses and capital allowances)

  • Anyone with total income exceeding £100,000

  • Anyone in Complex Personal Return or Ex-Pat Organisation Unit