PAYE71020 - PAYE operation: aspects of PAYE operation – taxpayer: coding: lost deduction documents


You may be told by the Employer Unit that the employer has lost deductions working sheets, code notifications and / or other records, for example, in a fire or theft.

Where you are told that the employer has enough information to prepare duplicate records

  • Use COP Function CD to issue a duplicate form P6 for each employee whose records have been lost

Where you are told that the employer does not have enough information to prepare duplicate records

  • Use COP Function CD to amend each live employee's code to Week 1 / Month 1 basis, but do not calculate any potential underpayment
  • Remind the employer that the Employer Help Books E10 - E13 cover codes on Week 1 / Month 1 basis

Employee on week 1 / month 1 as result of loss of records

Employees on a Week 1 / Month 1 basis code as a result of the loss of records may ask

  • That a cumulative code be used for the rest of the year

Or

  • For a repayment on the grounds of unemployment or final cessation of work

If so

  • Ask the Debt Management Office to obtain details of pay and tax and tell you how the figures were obtained

If the Debt Management Office is unable to help

  • Ask the employee for details of earnings and tax deducted for the period from 6 April to the date on which the employer records were lost
  • If necessary estimate earnings, bearing in mind the
  • Employee's previous rates of pay
  • Possibility of overtime, bonus payments and the like
  • Level of earnings after the lost records taking into account any change in circumstances, such as possible damage to the employer's business premises
  • Amount of the employer's previous monthly remittances to Banking Operations. Consider this only where a few employees are affected

And

  • Any other information available from the employer

Before you restore a code to a cumulative basis, ask the Debt Management Office to verify, as far as it can, the accuracy of the estimated pay and tax figures for the period from 6 April to the date on which the employer's records were lost.