PAYE53012 - employer returns: employer return work lists: post capture – 2007-08 onwards (Action Guide)


To deal with work items relating to captured annual returns, for years 2007-08 onwards, included on the ‘Post Capture’ Work List follow steps 1 – 31 below.

To deal with a work item on the ‘CIS Deductions Advisory (years 2002-03 to 2003-04) or ‘Post Capture’ Work Lists (years 2004-05 to 2006-07) see Action Guide PAYE53011.

This guide is presented as follows


Initial actionStep 1
CIS deductions sufferedSteps 2 - 3
Problems obtaining the CIS dataSteps 4 - 6
Making the CIS compareStep 7
CIS figure and return disagreeSteps 8 - 12
Tax credit funding discrepanciesSteps 13 - 15
Review funding authorisedSteps 16 -21
Tax credits paidSteps 22 - 29
Deleting the work itemStep 30 - 31


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

The ‘Post Capture’ Work List contains work items for every captured return where one or more of the following applies

There is a positive monetary amount in the CIS Deductions Suffered field

There is a tax credit funding discrepancy

There is a tax credits paid discrepancy

Notes:

  • When taking action to deal with a work item on this Work List, you must ensure that all post capture checks are worked at the same time
  • You must also ensure that you have considered each reason why the work item has been created on the Work List before you delete the work item
  1. Access Function WORKLISTS and select
  • Worklist Type ‘Post Capture’ from the drop down menu
  • Your Organisation Unit number from the drop down menu and highlight the work item(s) you want to make ‘Working’
  • Select the [OK] button
  • When asked ‘Do you wish to work the selected item(s)?’
  • Select the [Yes] button

CIS deductions suffered

  1. Use Function VIEW EOY RETURNS HISTORY to ensure that you have received and processed all appropriate returns, and return parts
  • If you have received all appropriate returns, or return parts go to step 3

Otherwise

  • Await receipt of the outstanding returns, or return parts, before proceeding with that work item, unless you are dealing with a provisional employer repayment request, in which cases see PAYE47106
  1. Compare the CIS Deductions Suffered amount on the captured return(s) with the ‘deductions figure’ held on the CISR system.
  • To do this
  • Open CISR using ‘My Workplace’ and
  • Select the ‘Employers’ folder under ‘Corporate Services’
  • Select one of the following user roles as appropriate: 'CISR View Only', ‘CISR Processor’, or 'CISR Process Manager'
  • You will have now reached the ‘Identify Customer’ window
  • Enter the employer’s reference in the ‘Emp Ref’ field
  • Select ‘Internal Enquiry’ in the ‘Contact’ field and press ‘OK’
  • Go to step 7
  • Otherwise, if you encounter problems when entering the employer reference into CISR, which may affect you making the CIS compare, go to step 4

Note: If there has been a merger or succession, add together the ‘deductions figures’ from the CISR system for both the old and the new employer references

Problems obtaining the CIS data

  1. If you are unable to obtain the employer’s CIS details using the employer reference, enter the Unique Taxpayer Reference (UTR) for the employer, which can be obtained from the following sources
  • Use Function VIEW EMPLOYER NOTES and check the employer record pad to review the information recorded (especially form P510)
  • Corporation Tax (CT) section or file
  • CIS section
  • If you have been able to establish the company UTR, and this is not held on the employer’s EBS record, use EBS Function AMEND LIMITED COMPANY & DIRECTOR DETAILS to update the employer record.
  • Go to step 7

Note: When entering a company UTR the office number should be entered in field one. If you do not know the office number for the taxpayer a default of 001 should be entered

  1. If you are
  • Unable to find the UTR

Or

  • The Accounts Office reference is not found or recognised on CISR
  • Contact the employer and request the UTR
  • Where the employer does not know the UTR, request
  • Their company registration number (CRN)

And

  • The date they became a limited company
  • Use COTAX Function TRCT (Trace Taxpayer) to obtain the UTR based on the information supplied by the employer
  • Use EBS Function AMEND LIMITED COMPANY & DIRECTOR DETAILS to update the employer’s EBS record with the UTR
  • Go to step 7
  1. Where you establish that the employer was not a limited company for the year of the claim, do not continue to make the compare at this stage
  • Contact the employer and advise them that, based on the information you hold, they were not a limited company for the year of the claim and as such they are not eligible to make a claim for CIS Deductions Suffered on their P35. Inform them that you will be arranging for their P35 to be adjusted accordingly
  • BF your papers for 4 weeks for a reply
  • If you receive a reply which states that the employer was in fact an eligible limited company refer the matter to the EBS Helpdesk for advice, otherwise
  • If no reply is received at the BF date or the employer confirms that the claim was made in error
  • Prepare a pro-forma additional return to reduce the amount of CIS Deductions Suffered to nil
  • For tax years 2004-05 onwards, use Function RECORD RETURN RECEIPT to record receipt of a pro-forma complete return and ensure you select the RSI2 radio button
  • For all years, use Function CAPTURE EOY RETURN DETAILS to capture a pro- forma additional return to reduce the amount of CIS Deductions Suffered to ‘nil’
  • Go to step 30

Making the CIS compare

  1. From the CIS Main menu window, select the subcontractor registration ‘As Company’ and then ‘View Customer’ from the menu options at the bottom of the window
  • Select ‘Designatory Details’ from the ‘Registration Details’ window
  • Select ‘Payment Details’ from the ‘Company Details’ window
  • This will display the total payments made to date to the employer, the cost of any materials supplied and the total deductions made to date
  • Use the ‘Filter’ facility to sort the payments relating to the tax year requested, these will then be displayed in the list box below. See CISR90210 for more information
  • Compare the figure of deductions displayed in the CISR window with the amount of CIS Deductions Suffered captured from the P35
  • If the figures agree (This text has been withheld because of exemptions in the Freedom of Information Act 2000)
  • Accept the claim in full and go to step 30
  • Otherwise, go to step 8

CIS figure and return disagree

  1. Your next action will depend upon whether the amount held on CISR is greater than the amount shown in the 'CIS Deductions Suffered' box
  • If the amount held on CISR is greater than the amount shown in the 'CIS Deductions Suffered' box
  • Accept the claim made on the P35
  • Go to step 30
  • If the amount shown in the 'CIS Deductions Suffered' box is greater than the amount held on CISR (This text has been withheld because of exemptions in the Freedom of Information Act 2000)
  • Accept the claim made on the P35
  • Go to step 30
  • Otherwise, go to step 9
  1. If the amount shown in the 'CIS Deductions Suffered' box is greater than the amount held on CISR (This text has been withheld because of exemptions in the Freedom of Information Act 2000)you must
  • Contact the employer and ask them to submit all relevant payment and deduction statements for the year to substantiate the claim for CIS Deductions Suffered made on their P35

Note: This contact must be made at the same time as contact is made to resolve any other discrepancies. Do not contact the employer on separate occasions to deal with each aspect you are reviewing

  • On receipt of the payment and deductions statements, go to step 10
  • If the employer is unable to provide payment and deduction statements or other evidence to substantiate their claim, or
  • Does not reply
  • Go to step 11
  1. Compare the tax deducted on the payment and deduction statement in CISR with the total CIS Deductions Suffered amount shown on the P35
  • If the figures agree (This text has been withheld because of exemptions in the Freedom of Information Act 2000)
  • Allow the claim in full
  • Go to step 30
  • Otherwise, attempt to identify the missing payments on CISR by comparing
  • The list of deductions shown on CISR, for the relevant tax year, with
  • The payment and deduction statements received from the employer
  • If after identifying the missing payments on CISR, the figures still disagree and the total of the payment and deduction statements does not cover the discrepancy, go to step 11,
  • Otherwise, where the total of the payment and deduction statement does cover the discrepancy
  • Allow the claim in full
  • Go to step 30
  1. Contact the contractor's processing office and request them to review the contractor’s EOY total figures
  • If the figures have been verified, go to step 30
  • Otherwise go to step 12
  1. You will only be able to give credit for the amount that has been verified
  • Contact the employer again and advised them that
  • Unless they can provide evidence to substantiate the missing deductions on CISR, you will only be able to give credit for the verified amount and will need to adjust the CIS Deductions Suffered amount, shown on their P35, accordingly
  • Where the employer supplies further evidence
  • Allow the claim either in full or to the extent that the deduction(s) has been verified
  • Refer the matter to the contractor’s CIS Processing team to consider whether an amended contractor's return is required
  • When the contractor’s record has been updated, go back to step 7 to make the compare again
  • Where the employer does not supply further evidence
  • Use Function RECORD RETURN RECEIPT to record receipt of a pro-forma complete return and ensure you select the RSI2 radio button
  • Use CAPTURE EOY RETURN DETAILS to capture a pro-forma additional return to reduce the CIS Deductions Suffered figure to the amount verified on CISR
  • Go to step 30

Tax credit funding discrepancies

Note: If an employer tells you that they have paid Working Tax Credit after 31 March 2006 and / or has carried forward TCF into 2006-07, you should advise the employer to contact the Employer Helpline on 0845 714 3143 (text phone 0845 602 1380).

You must first obtain certain information to resolve the funding discrepancy. When you have obtained the information

  1. Use EBS Function VIEW EOY RETURNS HISTORY to check if the Funding Discrepancy Indicator is set
  • If the indicator is set, go to step 14
  • If the indicator is not set go to step 30
  1. Compare the captured figure of tax credit funding authorised shown on EBS with the entry made on the P35
  • If the figures disagree go to step 15
  • If the figures agree go to step 16
  1. The amount you have captured is incorrect. You must
  • Process a correction return for a Net Adjustment amount ,which when added to the previously captured figure, will result in the consolidated position being equal to the funding figure entered on the return
  • At the top of the original return, note in green, the words ‘Correction return processed to correct keying error for TCF’
  • Where a discrepancy still exists go to step 16
  • Otherwise go to step 30

Review funding authorised

  1. Use NTC Function VIEW EMPLOYER ACCOUNT to establish the total funding figure received by the employer
  • (This text has been withheld because of exemptions in the Freedom of Information Act 2000)
  • (This text has been withheld because of exemptions in the Freedom of Information Act 2000)
  • (This text has been withheld because of exemptions in the Freedom of Information Act 2000)
  • (This text has been withheld because of exemptions in the Freedom of Information Act 2000)
  • (This text has been withheld because of exemptions in the Freedom of Information Act 2000)
  • (This text has been withheld because of exemptions in the Freedom of Information Act 2000)
  • (This text has been withheld because of exemptions in the Freedom of Information Act 2000)
  1. If you will need to investigate the discrepancy by contacting the employer
  • Advise the employer that there appears to be a discrepancy between the amount of funding they have entered on their return and the funding figure we hold
  • Ask the employer to check the final form TC712 received for the year and confirm the amount shown for ‘Total funding in tax year’

Note: Where there has been a merger or succession the ‘Total funding in tax year’ must include the amount shown on the TC712 for both the old and new employer references.

  • The next action will depend on the response from the employer
  • If the funding was allocated to a wrong employer reference go to step 18
  • If the funding should have agreed with the amount on NTC go to step 19
  • If the employer advises that some of the funding was not used go to step 20
  • If you are unable to resolve the discrepancy go to step 21
  1. If funding was allocated to a wrong employer reference
  • Establish if the employer references are connected (employer references are connected when they relate to the same employer, legal entity)
  • If the employer references are not connected
  • Ask the employer to pay back the amount of funding used against the wrong employer reference. If the employer is unwilling to do this go to step 21
  • If the employer references are connected and relate to the same employer
  • Send an email to ‘TCO-BDD,TAL-S1 (TCO Preston 6)’ with the title ‘ Movement of Employer Funding request PAYE53011’ and request that the relevant funding is reallocated against the correct employer reference. Note: It is essential that you use the correct email title to allow the TCO to identify these cases
  • When the funding has been reallocated go to step 30
  1. If you are able to agree that the amount entered onto the return should be the amount shown on NTC
  • Prepare a pro-forma additional return for a Net Adjustment amount ,which when added to the previously captured figure, will result in the consolidated position being equal to the funding figure shown on NTC
  • (This text has been withheld because of exemptions in the Freedom of Information Act 2000)
  • (This text has been withheld because of exemptions in the Freedom of Information Act 2000)
  • Go to step 30
  1. If the employer advises that some of the funding was not used in the year
  • If the year is 2003/04 or 2004/05 and the funding has been used in the following year
  • Send an email to ‘TCO-BDD,TAL-S1 (TCO Preston 6)’ with the title ‘ Movement of Employer Funding request PAYE53011’ and request that the unused funding is reallocated to the following year. Note: It is essential that you use the correct email title to allow the TCO to identify these cases
  • When the funding has been reallocated - go to step 30

Note: If the year is 2005/06

  • Advise the employer that the funding can not be reallocated to 2006/07 and all the funding must be declared on the 2005/06 return
  • Prepare a pro-forma additional return for a Net Adjustment amount ,which when added to the previously captured figure, will result in the consolidated position being equal to the funding figure shown on NTC
  • (This text has been withheld because of exemptions in the Freedom of Information Act 2000)
  • (This text has been withheld because of exemptions in the Freedom of Information Act 2000)
  • Go to step 30
  1. If you have been unable to resolve the discrepancy because
  • The employer advises that the funding amount entered on the return was correct
  • The employer is unable to agree to a correction to their return, or
  • You have been unable to contact the employer after at least two attempts at different times on different days
  • Complete a tax credit recovery stencil and forward to the relevant Debt Management recovery office (DMB) to investigate

Note: If the work item relates to a case where an overpayment disposal instruction is required, you must wait for a response from DMB before proceeding with the overpayment disposal instruction.

Tax credits paid

On 9 February 2007, all Tax Credit Paid (TCP) entries on the Post Capture Work List were removed and archived. Any entries for TCP discrepancies generated after that date will continue to populate this Work List but, these new cases must only be reviewed where an employer overpayment arises. You must continue to work cases shown on the Work Lists under the categories ‘TCF’ and ‘CIS’.

Note: In all cases where you are required to investigate an apparent employer overpayment and the employer has paid tax credits, you must continue to reconcile any amounts of ‘TCP’ shown on the relevant P35, even though there may not be an entry for that employer record on the Post Capture Work List.

  1. Use EBS Function VIEW EOY RETURNS HISTORY to compare the captured figure of tax credit paid shown on EBS with the entry made on the P35
  • If the figures disagree go to step 23, or
  • If the figures agree go to step 24
  1. The amount you have captured is incorrect. You must
  • Process a correction return for a Net Adjustment amount ,which when added to the previously captured figure, will result in the consolidated position being equal to the tax credits paid figure entered on the return
  • At the top of the original return, note in green, the words ‘Correction return processed to correct keying error for TCP’
  • Where a discrepancy still exists go to step 24,
  • Otherwise go to step 30
  1. Use NTC Function VIEW PVE DETAILS FOR EMPLOYER to establish the total authorised PVE for the year
  • If the total authorised PVE figure agrees with the amount claimed on the P35, no further action is required in respect of this aspect
  • Go to step 30
  • (This text has been withheld because of exemptions in the Freedom of Information Act 2000)
  • (This text has been withheld because of exemptions in the Freedom of Information Act 2000)
  • (This text has been withheld because of exemptions in the Freedom of Information Act 2000)
  • (This text has been withheld because of exemptions in the Freedom of Information Act 2000)
  • (This text has been withheld because of exemptions in the Freedom of Information Act 2000)
  1. If you will need to investigate the discrepancy by contacting the employer
  • Advise the employer that there appears to be a discrepancy between the amount of tax credits paid entered on their P35 and the figure we hold
  • Ask the employer to confirm that the amount entered on their P35 agrees with the tax credit notifications received for that employer reference
  • If discrepancies are identified ask for details of those applicants involved (names, national insurance numbers and PAYE reference numbers quoted on those notifications)
  • Your next action will depend on the employers’ response
  1. If the employer advises the tax credits paid amount entered on the P35 was incorrect (and should have agreed with the total authorised PVE figure shown on NTC)
  • Agree any amendment to the P35 figure with the employer, when agreement is reached
  • Prepare a pro-forma additional return for a Net Adjustment amount ,which when added to the previously captured figure, will result in the consolidated position being equal to the PVE figure shown on NTC
  • (This text has been withheld because of exemptions in the Freedom of Information Act 2000)
  • (This text has been withheld because of exemptions in the Freedom of Information Act 2000)
  • Go to step 30
  1. If the employer advises you that
  • They have received incorrect tax credit notifications for their employer reference

And

  • The tax credits paid amount entered on the P35 incorrectly includes payments made to applicants held under another employer reference

You will need to amend both the

  • PVE figure shown on NTC, and
  • The tax credits paid amount entered on the P35
  • Agree any amendment to the P35 figure with the employer
  • Establish if the employer references are connected. Note: Employer references are connected when they relate to the same employer
  • If the employer references are unconnected or do not relate to the same employer
  • Send a form TC681 (available on LFC 2000) to the Employer Liaison Team (in the Tax Credit Office) advising them of the applicants to be removed from the employer reference
  • Prepare a pro-forma additional return for a Net Adjustment amount ,which when added to the previously captured figure, will result in the consolidated position being equal to the P35 amount agreed with the employer
  • (This text has been withheld because of exemptions in the Freedom of Information Act 2000)
  • (This text has been withheld because of exemptions in the Freedom of Information Act 2000)
  • Go to step 30
  • If the employer references are connected and relate to the same employer
  • Use NTC Function AMEND PVE DETAILS to move the PVE award for each applicant to the correct employer reference

Note: If, when attempting to move an applicant, the error message ‘Scheme type does not support PVE’ is displayed, you will need to take the following action

  • Use EBS Function AMEND EMPLOYER SCHEME DETAILS to change the scheme type
  • On the next working day, after the scheme type has changed, use NTC Function AMEND PVE DETAILS to move the PVE award for each affected applicant to the correct employer reference
  • Send a form TC681 (available on LFC 2000) to the Employer Liaison Team (in the Tax Credit Office) advising them of the applicants to be removed from the employer reference
  • Prepare a pro-forma additional return for a Net Adjustment amount ,which when added to the previously captured figure, will result in the consolidated position being equal to the amount agreed with the employer and the PVE figure shown on NTC
  • (This text has been withheld because of exemptions in the Freedom of Information Act 2000)
  • (This text has been withheld because of exemptions in the Freedom of Information Act 2000)
  • Go to step 30
  1. If the employer advises you that
  • The tax credits paid amount entered on the P35 was correct, and
  • NTC includes payments made to applicants held under another employer reference
  • Agree any amendment to the P35 figure with the employer
  • Establish if the employer references are connected. Note: Employer references are connected when they relate to the same employer
  • If the employer references are unconnected or do not relate to the same employer
  • Send a form TC681 (available on LFC 2000) to the Employer Liaison Team (in the Tax Credit Office) advising them of the applicants to be removed from the employer reference
  • Go to step 30
  • If the employer references are connected and relate to the same employer
  • Use NTC Function AMEND PVE DETAILS to move the PVE award for each applicant to the correct employer reference

Note: If, when attempting to move an applicant, the error message ‘Scheme type does not support PVE’ is displayed, you will need to take the following action

  • Use EBS Function AMEND EMPLOYER SCHEME DETAILS to change the scheme type
  • On the next working day, after the scheme type has changed, use NTC Function AMEND PVE DETAILS to move the PVE award for each affected applicant to the correct employer reference
  • Send a form TC681 (available on LFC 2000) to the Employer Liaison Team (in the Tax Credit Office) advising them of the applicants to be removed from the employer reference
  • Go to step 30
  1. If you are unable to reconcile the discrepancy with the employer or the employer does not respond to your enquiries
  • Consider preparing a pro-forma P35 to account for the Tax Credits paid, in accordance with Action Guide ‘Overpayment notification’ PAYE47061
  • Go to step 30

Deleting the work item

  1. When you have dealt with every aspect for which the work item was generated on the Work List, use the [Delete] button to delete the work item from the list

  2. Where there is an apparent employer overpayment for the work list item, continue to deal with this in accordance with the Action Guide ‘Overpayment Notification’ PAYE47061

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