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Example 2

A company with an established tax history makes up its accounts to 31 December annually. It has had one associated company for many years. Its first Accounting Period (AP) was from 01/01/2019 to 31/12/2019. COTAX sets the Quarterly Payer signal to ‘No� as it does not regard the company as a ‘Potential� Quarterly Payer.

In July 2021:

• the AP ended 31/12/2019 appears on the Determination Required No Return List (DRNR) Work List as the company has still not delivered its return
• the Technical Caseworker reviews the company’s record and previous history and uses function RAMA (Record/Amend Assessment) to:
  • estimate the company’s profits at £800,000
  • change the Quarterly Payer signal from ‘Noâ€� to ‘Yesâ€� as the company’s estimated profits exceed the upper limit of £750,000 (£1,500,000 reduced by 1 plus 1, the number of associated companies)
  • confirm the Quarterly Payer status as ‘Yesâ€� and completes the making of the Revenue Determination with function RAMA
    
• the Technical Caseworker uses function MAPS (Maintain AP Signals) to review the Quarterly Payer signal for APs later than the AP ended 31/12/2019
  

By July 2021, COTAX has:

• created further APs for:
  • 01/01/2020 to 31/12/2020
  • 01/01/2021 to 31/12/2021

• Set the Quarterly Payer signal to ‘Noâ€� for each AP based on the value of the signal for the previous AP
  

And, therefore not issued instalment payslips for either AP.
The Technical Caseworker amends the Quarterly Payer signal for both APs to ‘Potential�. Doing that starts the automatic issue of payslips for future quarterly payments.