PAYE46091 - Employer returns: employer return post capture: regulation 80 determinations (Action Guide)

Note: From 6 April 2004 the Income Tax (Pay As You Earn) Regulations 2003 replaced the Income Tax (Employments) Regulations 1993. The following text refers to the new Regulation numbers however, some forms and functions refer to the old Regulation number.

When you have been advised on a form P380A that a Regulation 80 determination has been made, follow steps 1 - 24 below. The Guide is presented as follows

Choosing your action Step 1
All tax figures on form P35 are greater than those on form P380A Step 2
All tax figures on form P35 are less than those on form P380A Step 3
Mixture of tax figure discrepancies exist Steps 4 - 6
Reports to the PAYE section Steps 7 - 10
PAYE section replies Steps 11 - 22
Transferring payments Steps 23 - 24

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.

Choosing your action

1. Compare the figures of tax on form P35 with the corresponding figures on form P380A
 
  • If all of the tax figures are identical go to step 20
     
    Otherwise
 
  • If all tax figures on form P35 are more than the figures shown on form P380A go to step 2
 
  • If all tax figures on form P35 are less than the figures on form P380A go to step 3
 
  • If there is a mixture of tax figure discrepancies between the form P35 and form P380A go to step 4

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All tax figures on form P35 are greater than those on form P380A

2. Use Function VIEW BROCS (Format 3) to compare the details of any payments held on the BROCS record with the totals of tax and NIC shown on form P380A
 
  • If some of the tax due on form P380A is stood over go to step 7
 
  • If the tax due on form P380A is all collectible go to step 20

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All tax figures on form P35 are less than those on form P380A

3. Use Function VIEW BROCS (Format 3 - Postings Summary) to compare the details of any payments held on the BROCS record with the totals of tax and NIC shown on form P35
 
  • If all of the tax due on form P35 has been paid go to step 17
 
  • If some of the tax due on form P35 remains unpaid you must
 
 
    • Retain a copy of this memo with the papers
 
    • Go to step 18

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Mixture of tax figure discrepancies exist

  Where tax figure discrepancies exist on the P380A but are not all either greater or less than the tax figures on the P35 you must
4. Use Function VIEW BROCS (Format 3 - Postings Summary) to compare the details of any payments held on the BROCS record with the totals of tax and NIC shown on form P35
 
  • If all of the tax due on form P35 has been paid go to step 5
 
  • If some of the tax due on form P35 remains unpaid go to step 6
5. Telephone the relevant Banking Operations site and ask them to advise you of the details of any payments held on the BROCS record in respect of the totals of tax shown on form P380A
 
  • If all of the tax due on form P380A remains unpaid go to step 11
 
  • If some of the tax due on form P380A is stood over
 
 
    • Retain a copy of the draft letter with your papers
 
    • Go to step 7
6. Telephone the relevant Banking Operations site and ask them to advise you of the details of any payments held on the BROCS record in respect of the totals of tax shown on form P380A
 
  • If all of the tax due on form P380A remains unpaid
 
 
    • Retain a copy of the memo with the papers
 
    • Go to step 18
 
  • If some of the tax due on form P380A is stood over
 
 
    • Retain a copy of the memo with your papers
 
    • Go to step 7

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Reports to the PAYE section

7. Forward a report to the relevant PAYE section and retain a copy with your papers. Your report must include
 
  • What has been received
 
  • For each employee on both form P35 and form P380A
 
    • Their name
 
    • The figure of tax on form P35 (or attach a copy of form P35)
8. Request the PAYE section to confirm when the Regulation 80 tax is fully discharged, partly discharged or released for collection
 
  • Use Function AMEND EMPLOYER INDICATORS to set the POST indicator
 
  • BF your papers for the PAYE section's reply
9. Check if any employees shown on form P35 are not included on form P380A
 
  • If there are none go to step 11
 
  • For any employee not included on form P380A
 
    • Amend form P35 in green ink to delete the entries relating to the employees not included and reduce all relevant totals accordingly
 
    • Prepare a pro forma form P35 but only mark it 'additional' if the form itself is an additional P35
10. Capture the pro forma return. Follow the appropriate Action Guide, see
  'Capturing annual return - up to 2004' PAYE42011 
  'Capturing annual returns - 2005 onwards' PAYE43011 
 
  • Use Function AMEND EMPLOYER INDICATORS to set the INHIBIT UP/OP indicator on the employer record
 
  • Complete a form P29 and send this to the appropriate Debt Management Office

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PAYE section replies

  Your next action depends on the PAYE section's reply
 
  • If the Regulation 80 tax for the employees shown on form P35 has all been discharged go to step 15
 
  • If the Regulation 80 tax for the employees shown on form P35 has not all been discharged your next action will depend on the following
 
    • If all the tax figures on form P35 are greater than the figures on form P380A and some of the tax due on form P380A has been stood over go to step 20
 
    • If some of the tax figures on form P35 are less than (but some others exceed) the figures on form P380A, some of the tax due on form P35 is unpaid but some of the tax due on form P380A has been stood over go to step 17
 
    • If some of the tax figures on form P35 are less than (but some others exceed) the figures on form P380A, all of the tax due on form P35 is paid but some of the tax due on form P380A has been stood over go to step 11
11. Your action depends on any payment made
 
  • If all of the tax due shown on form P35 has been paid
 
 
    • Retain a copy of the letter with the papers
 
    • Go to step 12
 
  • If some of the tax due shown on form P35 is unpaid
 
 
    • Retain a copy of the memo with your papers
 
    • Go to step 12
12. Compare the tax figures on form P35 with those for each employee shown on form P380A and amend the figures on form P35 and both copies of form P14 as follows
 
  • If they exceed the figures shown on form P380A
 
    • Reduce them by the excess 
 
    • Write '£(amount shown on form P380A) included in Regulation 80 determination'
 
    • Amend the total tax due on form P35 accordingly
 
  • If they are equal to or less than the figures shown on form P380A
 
    • Reduce them to NIL 
 
    • Write 'Tax included in Regulation 80 determination'
 
    • Amend the total tax due on form P35 accordingly
13. If you have already made a report to the PAYE section go to step 21
  Otherwise
  Send a report to the PAYE section and retain a copy with your papers. Your report must include
 
  • What has been received
 
  • For each employee on both form P35 and form P380A
 
    • Their name
 
    • The figure of tax on form P35 before the amendment (or attach a copy of form P35)
 
  • A request to advise the employer if the Regulation 80 determination is to be adjusted
14. Go to step 21
15. Check if form P35 shows NIC for employees included on form P380A
 
  • If it does not
 
    • Go to step 16
 

Otherwise
 
  • For each employee included on form P380A
 
    • Amend the NIC figures on form P35 and both copies of form P14 to 'NIL'
 
    • Amend the total NIC due on form P35 to the reduced total
 
    • Photocopy the copies of all P14s amended for NIC
 
 
    • In the space above the employee's names on the letter enter 'The employer has paid (£amount / nil) for the NIC shown on these forms P14.' and 'I am arranging for transfer of this amount to your office' (if applicable)
16. Process the original / amended return. Follow the appropriate Action Guide, see
  'Capturing annual return - up to 2004' PAYE42011 
  'Capturing annual returns - 2005 onwards' PAYE43011 
 
  • Use Function AMEND EMPLOYER INDICATORS to set the INHIBIT UP/OP indicator on the employer record
 
  • Complete form P29 and send this to the relevant Debt Management Office
 
  • Go to step 23
17. Your next action depends on the amounts of tax shown on forms P35 and P380A
 
  • If none of the tax figures on form P35 exceed the figures on form P380A, and all the tax due on form P35 has been paid
 
 
    • Retain a copy of the letter with your papers
 
    • Go to step 18
 
  • If some of the tax figures on form P35 are less than (but some others exceed) the figures on form P380A, and some of the tax due on form P380A has been stood over
 
 
    • Retain a copy of the memo with your papers
 
    • Go to step 18
 

Check if any employees shown on form P35 are not included on form P380A
 
  • If there are none and
 
    • All of the tax due shown on form P35 has been paid make any amendments for NIC at step 21 then go to step 24. You do not need to forward a report to the PAYE section
 
    • Some of the tax shown on P35 is outstanding BF the original form P35 until the Debt Management Office replies then go to step 21
 
  • Otherwise, for any employee not included on form P380A
 
    • Amend form P35 to delete the entries relating to the employees not included and reduce all relevant totals accordingly
 
    • Prepare a pro forma form P35 but only mark it 'additional' if the form itself is an additional P35
18. Process the pro forma return. Follow the appropriate Action Guide, see
  'Capturing annual return - up to 2004' PAYE42011 
  'Capturing annual returns - 2005 onwards' PAYE43011 
 
  • Use Function AMEND EMPLOYER INDICATORS to set the INHIBIT UP/OP indicator on the employer record
 
  • If all of the tax due on the original form P35 has been paid make the amendments for NIC step 21 then go to step 24
 

Otherwise
19. For each employee shown on form P380A, in green ink, cross out with a single line the figure of tax deducted and enter above or beside it
 
  • On the original form P35 and both copies of each relevant form P14
 
    • The reduced total or 'NIL' as appropriate
 
    • '£(amount due shown on form P380A) included in Regulation 80 determination'
 
  • On form P35 the total tax due 
 
    • The reduced total or 'NIL' as appropriate
20. Where form P35 shows NIC for employees included on form P380A
 
  • For each employee included on form P380A
 
    • Amend the NIC figures on form P35 and both copies of form P14 to 'NIL'
 
    • Amend the total NIC due on form P35 to the reduced total
 
    • Photocopy the NICO copies of all P14s amended for NIC
 
 
    • In the space above the employee's names on the letter enter 'The employer has paid (£amount / nil) for the NIC shown on these forms P14.' and 'I am arranging for transfer of this amount to your office' (if applicable)
21. Process the amended return. Follow the appropriate Action Guide, see
  'Capturing annual return - up to 2004' PAYE42011 
  'Capturing annual returns - 2005 onwards' PAYE43011 
 
  • Use Function AMEND EMPLOYER INDICATORS to set the INHIBIT UP/OP indicator on the employer record
 
  • Complete form P29 and send this to the appropriate Debt Management Office
 
  • If some tax figures on the original form P35 exceeded (but none were less than) the P380A tax figures
     
    Or
 
  • The tax figures on form P35 and P380A originally matched, and none of the tax due shown on form P380A is stood over
 
    • Go to step 24
 
Otherwise
 
    • Go to step 23
22. If you have already forwarded a report to the PAYE section go to step 24
  Otherwise
  Forward a report to the PAYE section and retain a copy with your papers. Your report must include
 
  • What has been received
 
  • For each employee on both form P35 and form P380A
 
    • Their name
 
    • The figure of tax on form P35 (or attach a copy of form P35)
 
  • Request the PAYE section to advise the employer if the Regulation 80 determination is to be adjusted

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Transferring payments

23. If you need to transfer any existing payments to the Regulation 80 determination
 
  • Complete form P565
 
  • Forward a report to the Banking Operations Network Unit. Include
 
    • The amendments made to forms P35 and P14 (or attach a copy of form P35)
 
    • The amount transferred
24. You must satisfy charges in the following order
 
  • If the payments relate to tax
 
    • Tax due for employees not shown on form P380A
 
    • Tax due for employees shown on form P380A which exceeds the Regulation 80 tax due
 
    • Tax due shown on form P380A
 
  • If the payments relate to NIC
 
    • The NIC due for employees not shown on form P380A
 
    • The NIC due for employees shown on form P380A

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