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SAM123140 | Returns: trust returns: voluntary returns: trusts

From HM Revenue & Customs · Self Assessment Manual

Voluntary returns are returns received from trustees or agents where HMRC have not given a notice to the customer to make the return. HMRC’s long standing policy of treating them as statutory returns has been put beyond doubt as from 12 February 2019 new law was introduced which has retrospective and prospective effect. All voluntary returns should now be treated as having been made in response to a notice to file which was given to the person on the same date the return was received by HMRC.

In the case of a return for an out of date year

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All other cases

In all cases you should set up an SA record in a new case, or reactivate the record in a dormant case, where you receive a voluntary return or information which purports to be a return. For information on setting up a trust record see section ‘Set Up Taxpayer’ in business area ‘Records’; for information on re-activating a dormant record see section ‘Maintain Taxpayer Record’ in business area ‘Records’.

You should then consider whether there has been a potential Failure to Notify chargeability and if so, use function ADD / AMEND ANNUAL COMPLIANCE DETAILS to set the Mandatory Review signal (category ‘FTN’) on the SA record.

If the information received purports to be a return but which is not in the proper form and which lacks a proper declaration you should

  • Write to the trustee, (send a copy to the agent where the information has come from the agent) explaining that the information given cannot be treated as constituting a return since it falls short of the requirements

Note: Where a voluntary return is signed by someone on behalf of the taxpayer (for example, Power of Attorney), also seek confirmation of authority if there are any doubts

  • Enclose an official return for completion

And

  • Record the date of issue of the return using function RECORD DATE OF CLERICAL ISSUE. The date recorded should be the same as the date on your letter

If the voluntary return is in the proper form you should log the return to record the date of receipt.

You should then capture the return details using TSS.

If Failure to Notify applies, the due date for payment will remain as 31 January following the end of the tax year and payments on account for the following year will also remain as 31 January and 31 July.

If the return is received after 31 January, and Failure to Notify does not apply, notify the Review Interest Network Officer (RINO) that the relevant date for payments (balancing charge and payments on account), and the late penalty trigger date, should be deferred. This is because deferring the due date for payment will prevent interest being charged from the original due date of 31 January following the end of the tax year. However, it will not prevent a late payment penalty being charged. You should defer the late penalty trigger date to 30 days after the deferred relevant date. As there is no computer functionality for this purpose, you must use the Time to Pay (TTP) functionality and set the TTP start and end dates accordingly.

If Failure to Notify applies, the due date for payment will remain as 31 January and payments on account for the following year will also remain as 31 January and 31 July.

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Last date for S9A enquiry

A notice is treated as having been given on the date HMRC receive the voluntary return. A voluntary return will therefore always be made and delivered to HMRC on or before the filing date. The last date for enquiry into a voluntary return is the end of the 12 month period commencing on the day the return was delivered.

For example

  • Return received - 21 November 2017

  • 12 months period commences - 21 November 2017

  • 12 month period end - 21 November 2018

  • Last date for enquiry - 21 November 2018

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