CTM92680 - CTSA: quarterly instalments: 'quarterly instalment payer' (QIP) signal

COTAX recognises a case as a QIP (or a potential QIP) by the presence of a 鈥楺IP鈥� signal, set at accounting period level.

The signal may be set to Large 鈥楲鈥�, Very Large 鈥榁鈥�, Not QIP 鈥楴鈥� or potential 鈥楶鈥�. In outline:

  • COTAX changes the signal to 鈥楲鈥�, 鈥榁鈥� or 鈥楴鈥� automatically when a return is captured, by reference to the presence or absence of an entry in the 鈥榪uarterly instalment payments鈥� boxes on the return form.
  • COTAX validates the information captured from the return to ensure that cases which appear to be QIPs cases, but which do not have the 鈥楲鈥� or 鈥榁鈥� signals set, are placed on the work list quarterly payer review list (QPRW). It also does this for cases where the 鈥楲鈥� or 鈥榁鈥� signals have been set but which do not appear to be QIP cases, see CTM92690.
  • COTAX carries the 鈥榗urrent鈥� value of a 鈥楴鈥� signal forward to the next accounting period. If the signal is 鈥楲鈥� or 鈥榁鈥� then COTAX sets the value in the next accounting period as 鈥楶鈥�.
  • Officers can change the value of the signal:
  • using function MAPS (maintain accounting period signals), or
  • when making a Revenue determination or making or amending an assessment in functions PRED (prepare revenue determination) or RAMA (record/amend assessment).

For example, when you are making a Revenue determination in the absence of a return, set the signal to 鈥楲鈥�, 鈥榁鈥� or 鈥楴鈥�. See CTM95370 about making a determination of the dates on which tax is payable, and the on-line COTAX Manual (COM), subject 鈥楻evenue determinations鈥� in the Assessing business area for the COTAX guidance.

COTAX issues instalment payslips (see CTM92550) for the current accounting period if the signal is set to 鈥楲鈥� , 鈥榁鈥� or 鈥楶鈥�.

  • It is the value of the signal, and nothing else, which determines whether or not COTAX treats the case for interest purposes as a QIP case. If cases on the COTAX Quarterly Payer Review List (QPRW) are not properly checked, incorrect credit or debit interest could arise.
  • When an accounting period is superseded the 鈥楺IP鈥� signal is normally carried forward to the superseding accounting period.

See the COTAX Manual (COM), business area Pursuit for fuller information on the 鈥楺IP鈥� signal.