ECH22565 - Yield Recording: Referral to Other Business Areas

Personal Return Compliance

Where an underpayment is identified in relation to P11D items and

• the criteria at ECH17035 is met or
• the employer declines to pay the tax on behalf of individuals who receive a Self- Assessment return

The ECO should

• refer the underpayment to PRC via RISK. Full details of the tax underpaid and Class 1 or Class 1A underpayment being pursued by EC should be provided.
• calculate a current year adjustment in accordance with ECH9045 where appropriate (see ECH22540)
• claim the amount of tax referred as ‘refer for S9A enquiry’ on ECS
• claim the amount of the current year adjustment on ECS
• consider penalties for incorrect or failure to submit forms P11D / P11D(b) ( ECH21030, ECH21045, ECH21026, ECH21041)

Note

PRC acceptance is not required before yield can be claimed

(This text has been withheld because of exemptions in the Freedom of Information Act 2000).

PAYE Processing

Where the employer refuses to pay the tax on behalf of individuals who do not receive a Self- Assessment return the ECO should

• refer the underpayment to DP
• calculate a current year adjustment in accordance with ECH9045 where appropriate (see ECH22540)
• claim the amount referred as ‘refer to other section / area’ on ECS
• claim the amount of the current year adjustment on ECS
• consider penalties ( ECH21030, ECH21045, ECH21026, ECH21041)

Accounts Inspector (Not Team)

Where irregularities are identified which have CT implications the ECO should

• liaise with the Large / Medium Business Team (LBT / MBT) at an early stage

Where the Accounts Inspector agrees that EC should continue with the review the ECO should

• claim the yield as normal

Where the LBT / MBT indicate that they wish to embark on a joint working venture the ECO or ECTM should

• agree a basis for sharing yield

Where the LBT / MBT advise that they intend to open an enquiry and include the EC element in their settlement the ECO should

• prepare a computation to include tax, NICs, interest and a potential penalty where appropriate
• claim the amount of the computation as ‘referral to Accounts Inspector’ on ECS

It must be evident from the file how amount of yield claimed has been calculated.