ECH22505 - Yield Recording: Introduction

This chapter provides guidance on recording the correct amount of yield for anyemployer compliance checks and broader coverage cases. It also provides anindication as to which yield is counted and which is discounted for the Board’sReport.

General Principles

Yield must be

• claimed with consistency and accuracy and
• supported by a clear audit trail

• A compliance check ( ECH22506) is where we proactively address an identified compliance risk and may be undertaken by a visit
• a non-visit for example a letter or telephone enquiry.

In LBS a compliance check is referred to as risk working.

The working of the case and yield arising from a compliance check should be recorded using the Employer Compliance System as

• a Full or Aspect review ( ECH7002)

Yield may also arise as a result of

• voluntary disclosure ( ECH22509), which should be recorded as an Employer Amendment ( ECH22510)
• Broader Coverage (BC) ( ECH22507), where we recover yield that is not as a result of a compliance check defined above. Such cases should be recorded as an Employer Amendment ( ECH22510)
• action that avoids the repaying of monies held by us where it is established that returns submitted are incorrect, for example
  
  
• • where an apparent overpayment exists on BROCS (ECH22630), or
  • where as a result of our challenge we refute the customers request for a repayment of tax and/or NICs (the original returns will remain correct).

Employer Amendments should not be entered as Group 1. This is reserved for RLLB cases where an assurance visit is undertaken ( ECH7470).

In all instances the correct settlement process must be followed ( ECH22000 onwards).

Certain yield counts towards the compliance results in the annual Board’s Report (external). Other yield, although counted for yield/cost targeting purposes (internal) is discounted in the Board’s Report.

The definition of open, closed and current years is at ECH9005. When working out the yield to be claimed you must establish the

• open years
• closed years and
• current year

as this will ensure accurate yield claims and will also assist you in understanding the guidance in the following pages.

See also ECH22540.

When calculating any underpayment you should

• take account of the time limits for recovery. ( ECH22130, ECH22131).

Interest and penalties must be sought in appropriate cases. Where (This text has been withheld because of exemptions in the Freedom of Information Act 2000)a decision is made not to seek penalties you should

• follow the guidance at ECH21120
• ensure that part 2 of Form 94(EC) is fully completed

Where difficulty is encountered in obtaining the expected offer you should

• contact TAA (Liverpool) (This text has been withheld because of exemptions in the Freedom of Information Act 2000)for advice ECH21130 or

make a referral to the local Authorising Officer ECH21550.