PAYE42026 - employer returns: capture employer return – up to 2004: NIL returns - up to 2004 (Action Guide)
Note: This Action Guide should be used for tax
years up to 2003/04 only.
To carry out checks on a NIL return follow steps 1 - 13
below. The Guide is presented as follows
| Initial action | Step 1 |
| Forms P35 with forms P14 | Step 2 |
| Payment check | Steps 3 - 6 |
| Incomplete returns | Steps 7 - 8 |
| Tax credits | Steps 9 - 10 |
| Capture return | Step 11 |
| Penalty review | Step 12 |
| Final review | Step 13 |
For details of how to access any of the Employer Business
Service functions use the [Index of Functions] button on the left
of the screen
Initial action
- Review the items received
- Go to step 2 if you have received a P35 with forms P14
- Go to step 3 if you have received
- A CIS36 / SC35 where there are no tax deduction details entered on the form
- P35 only where there are no deduction details entered on the reverse of the form
- P35 only where the deduction details on the reverse of the form show NIL
- Confirmation from the employer by telephone or letter that no tax or NI deductions have been made or tax credits paid
Forms P35 with forms P14
- Review each P14. Are there any entries in the earnings column
1a
- If not go to step 3
- If so
- Use Function VIEW EOY RETURNS HISTORY to check that the return has been recorded as received
- Proceed to review the return for capture. Follow PAYE42031
Payment check
A check must be made to establish whether any payments have been allocated against the employer record for the year of the return or are likely to be made (Class 1A NIC charge)
- Use Function VIEW BROCS (Postings Summary) to identify any
payments made by the employer / contractor in the tax year relating
to the return
- Where payments are shown on BROCS
- Make a note of the amounts and the dates of payment
And then
- Go to step 4
- Where there are no payments on BROCS and there is no Class 1A NIC signal present
- Make a note on the return ‘nil’ in green ink
And then
- Go to step 9
- Where you have found that payments have been allocated to the
year and the Class 1A NIC signal
- Is set go to step 9 to continue your review
- Is not set you must telephone the employer / contractor immediately
- Go to step 5
- Ask them to explain why the amount was paid and not entered on
the return
- Use the information to decide whether
- The payment has been allocated incorrectly. If so arrange for BROCS to remove the payment from that year and to reallocate it correctly. Further information is available at PAYE47075. Then go to step 9
Or
- The payment was allocated correctly. If so the return must be considered to be incomplete, go to step 7
Incomplete returns
- Use Function AMEND / DELETE EOY RETURNS RECEIPT to delete the
date of receipt. Further guidance is available at
PAYE41011
- Send the return back to the employer / contractor requesting a complete return. Further guidance is given at PAYE40016
Tax credits
A check
must be made to establish whether any Tax Credits
have been authorised or funding payments made to the employer for
the year of the return. For tax years up to 2002 these are in the
TCS system and for years 2003 onwards they are in the NTC system.
Note: These checks do not apply when the employer
record scheme type is XP
- Use TCS or NTC Function VIEW PAYMENT VIA EMPLOYER DETAILS to
identify
- Funding issued
- Tax credits
And then
- Go to step 10 where any amount is identified
Otherwise
- Go to step 11
- Make a note of any details shown and investigate the discrepancy. Follow PAYE53011
Capture return
- Use Function CAPTURE EOY RETURN DETAILS to capture the 'nil' return
Penalty review
- After a nil return is captured you must consider the penalty
position. If the return was either recorded as received or captured
- Before the Interim Penalty issue date (20th September) no further action is required
Or
- After the Interim Penalty issue date a penalty may have been issued. Send the following information to the Penalty Officer to consider discharging the penalty
- Year of the nil return
- Employer name
- Employer reference number
Final review
- When a nil return has been processed it is essential that you
consider the following
- Making the employer record dormant – see PAYE21056 for further information
Or
- Ceasing the employer record – see PAYE21031 for further information
