Reclaiming Tax is handled via the
‘Reports, Reclaim Tax Paid on Investments’ screen and the
‘Investments, Tax to be reclaimed’ screen.
For SIPPs the claims are made globally
across all SIPPs and so the main screen to use is the ‘Reports’
screen. The ‘Investments, Tax to be reclaimed’ screen is just for
viewing and inputting records for one SIPP only.
For SSASs, the claims are made for each
scheme individually and so the main screen to use is the ‘Investments,
Tax to be reclaimed’ screen. The other screen is just to input records
across all schemes and to see which schemes have claims yet to be made.
Various features explained below may not
be visible in different situations depending on whether you are dealing with
SSASs or SIPPs and which version of the screen you are using.
There are 2 grids on the screens. The
first grid shows a list of all claims that have been made with a summary of the
dates and the total amounts. The second grid shows a list of all payments that
have either been included within a claim or are waiting to be claimed.
New
To enter details of reclaimable tax that
has been deducted from investments, click the New button. A new screen will
allow you to enter all the necessary details. Once that screen is closed the new
entry will be added to the lower grid. Details can be amended in a similar way
(using the Amend button or double clicking the record), but not once a record
has been included in a claim. If the tax entered is not 20% of the gross amount
a warning will be shown.
Filter
The grids can be filtered using the Filter
button. The tax records can be filtered to only show the records relating to a
chosen scheme.
Independently, the tax records can be
filtered on:
·
To show
unclaimed records only
·
To show
claimed records only and link the 2 grids so that changing the record in the
claims grid will change the tax records displayed in the lower grid
·
To show
claimed and unclaimed records with no link between the 2 grids
Excel
The Excel button sends all of the tax
records to Excel. The records included depend on the filters that you have
previously set.
Make R63N Claim
HMRC provide guidance on when claims can
be made for tax suffered within the current tax year (‘in year’
claims). These claims have to be made on the R63N form and have to include a
schedule. If you click the ‘Make R63N claim’ button, the necessary
schedule will be produced in Excel. It will include all records relating to the
current tax year that have not already been claimed. If the data is not
complete, the spreadsheet will indicate which records need extra data. If the tax is different from 20% of the
gross amount, the calculated percentage will be shown in the Tax Rate column to
highlight the records that need checking. The scheme name is also showwn for
indentification purposes. The Tax Rate and Scheme Name columns are shown on the
right so that it is easy to print the required range for the schedule to be
sent to HMRC.
If the data is complete, you will be asked
if you want to proceed with the claim. If you do so, a new claim record will be
created in the top grid. A claim number will be allocated automatically and
this claim number will be added to all of the tax records that are included in
claim. No bank transactions are created at this stage.
Delete Claim
If you make a mistake, you can delete the
claim, without deleting the individual tax records. You can then produce the
claim again but all unclaimed records will be included when you re-run the
claim. It is important that you do not enter any new tax records in between
making and deleting the claim, unless you want to add them to the amended
claim.
Allocate Tax
When you receive the payment from HMRC you
can use the ‘Allocate Tax’ button to create all the necessary
transactions. A screen will appear explaining what will happen and allowing you
to produce a report before processing the records. The report will produce a
list of all schemes that have reclaimed tax showing the total amount claimed
for each scheme. There may be many tax records for a scheme within the claim
but these are added together to show one total amount for the scheme. The main
bank accounts, sort codes and account numbers are also shown. This report is
useful for SIPPs but for SSASs there will be just one scheme.
The screen will allow to enter the amount
of interest that HMRC have paid with the total claim – for SIPPs, HMRC
will not break this amount down between the members. The report will allocate
the interest between the SIPPs and show the total of the tax plus interest for
each SIPP. The total of amount interest paid by HMRC is stored in the Claim
record. The interest can be increased by the extra pence received due to
rounding (see below).
If you decide to process the records then
the date received will be added to the Claim record (displayed in the top grid
on the main screen). For each scheme, one bank transaction will be created in
its main bank account. That transaction will be posted and imported, so that it
can be viewed in ‘Investments, Tax Reclaims Received’. The amount
includes the share of the interest. The interest included is added to the bank
transaction comments field and stored in the ‘Investments, Tax Reclaims
Received’ field.
Rounding
The total amount to be claimed is rounded
up to the nearest pound (and the gross amounts are rounded down). For SSASs
Omni will create a bank transaction for the rounded amount. For SIPPs the
amount reclaimed for each individual SIPP member is not rounded. There will be
some pence left over (due to the rounding of the total) which can either be
ignored or added to the interest to be allocate between the members.
Reverse Allocation
It is not recommended that you reverse the
allocation but, if you do, all of the bank transactions created when the tax
was allocated will be deleted. The date received will also be deleted from the
claim.
SA970
After the end of the tax year, an SA970
annual return is submitted. This can include a final claim for any amounts not
claimed during the tax year. It summarises all claims made for that tax year.
Omni collates the information to be shown on the SA970.
User rights
If you have the user rights to reclaim
tax, you will be able to process the claims. Otherwise you will be told you can
only produce reports.