SAM121310 | Returns: individuals returns: capture of returns issued in error

On receipt of a return which has been issued in error the return must be logged, although it may be blank and unsigned. A return will have been issued in error in various circumstances.

The taxpayer died before the beginning of the return year

This will normally be where the taxpayer has died between the automatic selection process taking place and the date of bulk issue of returns in April.

The taxpayer received two returns

This will occur where there are two SA records held for the taxpayer. One of the returns must be completed and the SA record of the uncompleted return will be made dormant.

A limited company received a return

This will only occur where a record has been incorrectly set up. An SA record is only required for a company where the company is a member of a partnership.

Information was held by the Department at the time the return was issued that the taxpayer did not meet the SA criteria

This will occur where, at the date of the annual selection of returns, we held information that the customer did not meet the SA criteria. This only applies where

• Contact is made by 31 January following issue of the return

• The customer has specifically drawn our attention to their circumstances before selection took place. Completion of the CY-1 return is not sufficient notification, unless this was captured prior to the date of the annual selection of returns and for some reason we did not act on the information at that time

The case had ceased or been made dormant before the beginning of the year

This will normally be where the taxpayer’s SA record was updated between the automatic selection of returns process taking place and the date of bulk issue of returns in April.

Employees meeting automatic ‘refinement’ criteria

This will occurwhere individuals, who would have been removed from SA had their returns been captured before the annual selection of returns process, will no longer need to complete a return for the following year. In these cases the following must all apply

• Contact must be made by 31 January following issue of the return

• The ‘Potential Removal Case’ signal must be held on the SA record

• There must be no changes in the taxpayer’s circumstances that now require an SA return to be completed

Note: It may be that no signal is held on the SA record because PAYE / SA links have not been properly established. If this is the case, you should not spend time attempting to ascertain if the SA guidelines are no longer met and should inform the taxpayer that the return needs to be completed. You will need to properly establish PAYE / SA links to ensure subsequent returns are subject to the automatic refinement process.

Pensioners and low income taxpayers

This will occurwhere individuals, who would have been removed from SA had their returns been captured before the annual selection of returns process, will no longer need to complete a return for the following year. In these cases the following must all apply

• Contact must be made by 31 January following issue of the return

• The taxpayer must be in receipt of an income of £7500 or less, or in receipt of retirement pension

• There must be no changes in the taxpayer’s circumstances that now require an SA return to be completed

Note: Where appropriate, you will need to action any entry on the Pensioner and Low Income Review List.

In all cases the return issued in error must be dealt with by following the Action Guide ‘Capture of returns issued in error’ (SAM121311).