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SAM123221 | Returns: trust returns: calculating trust liability (Action Guide)

From HM Revenue & Customs · Self Assessment Manual

To calculate the trust liability follow steps 1 - 15 below. This guide is presented as follows

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

Initial action

1. Check for any changes to the name and address of the main trustee on the return

2. Use Technical Support System (TSS) to enter the return details. The SA Pension or SA Trust programmes on TSS are allocated by the Local Administrator and accessed through Single Point Security

Note: Ensure that you enter the main trustee’s amended name and / or address where applicable

3. Put the return on one side to await the output from TSS

Action on receipt of output to taxpayer

4. Separate the ACTION REQUIRED FOLLOWING DATA CAPTURE printout and put it to one side

5. Attach the letter and the other printouts for each trust for each return

6. Issue the documents to the trustee

Action on receipt of ACTION REQUIRED FOLLOWING DATA CAPTURE printout

7. If the printout indicates that a repayment request has been made use function VIEW STATEMENT to establish

  • Whether the taxpayer’s SA record shows a credit balance. If not write to the trustee explaining why a repayment is not due

  • Whether any charges are due within the next 45 days. If so, and these reduce / eliminate the repayment claimed, contact the trustee and explain why a (full) repayment is not appropriate at this time

  • When payment was processed (posting date). If this falls within the last 14 days the payment is an uncleared payment. B/F the file until the 14 day period has elapsed and review the claim again

8. Use function ISSUE REPAYMENT FROM OVERPAID BALANCE to make the repayment to the trustee, agent or nominee. Note: It is not possible to send a signature in box 18.12 by Internet; if boxes 18.8A to 18.11 have been completed, the submission by Internet can be accepted as the Trust’s authority to make repayment to an agent or nominee

9. If the printout indicates that changes are required to the SA record, for example a change of trustee name or address, refer to subject ‘Trustee detail changes’ (SAM123130) for more information

10. If the printout indicates that submission to HMRC (Trusts) is required because discretionary payments have been made to surviving settlor’s minor unmarried children

  • Consider submitting the return with the file to HMRC (Trusts)

11. If the printout indicates there is a claim to double taxation relief

  • Consider submitting the return with the file to the Centre for Non Residents

12. If the printout indicates that the return contained a claim to reduce payments on account refer to section ‘Claim to adjust payments on account’ in business area ‘Amend Payment’

Note: Claims to adjust are passed automatically from TSS to SA

13. If the printout indicates that the trust or period of administration has ceased

  • Use function AMEND TAXPAYER SIGNALS and enter the year of this return in the Last SA Return Required for Year Ending 5th April field

14. If the printout indicates that there is a trading loss brought back refer to subject ‘Prior Year Adjustments: Trust Returns’ (SAM123160)

15. File the printout with the return for future reference and to deal with any queries arising from any repairs made to the return