PAYE79010 - PAYE operation: targeted review forms: basis of issue of review forms

Information is available on the following subjects

Form R40
Form 575T
Form P810
Form P87
Pensioner cases

Only one type of targeted review form can be issued per case (except for 575 TO HUSBAND cases where the individual and spouse / civil partner can get separate forms or 575 issued manually to civil partners).

The bulk issue tick boxes on the targeted review forms issue screen can be selected numerous times but only one form will be issued and it will be the one with the highest priority. An R40 has priority over a 575 which has priority over a P810.

Form R40

This form is issued annually if the R40 check box is set on the individual’s record.

The bulk issue tick box is selected on the Issue Targeted Review Form screen.

When you have selected [submit] the tick box will not be visible so you must make a manual Contact History note see PAYE105016.

Note: After the annual issue of form R40, the R40 check box is removed automatically from the record. It is important to reset the R40 bulk issue check box in the Issue Targeted Review Forms screen if, when examining the R40, it is clear that a repayment can reasonably be expected for the following year.

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Form 575T

This form is issued annually where

• Married allowance transferred was present in the CY-1 coding

• The 575T/575HUS is noted as being required on the record

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Form P810

This form is issued every third year if the CY or CY-1 coding contains

• Any of the following deductions in amounts between £150 and £2501
• Commission
• Other Income (Earned)
• Other Income (Not earned)
• Property Income
• Untaxed Interest
• Other Earnings
• Part Time Earnings
• Tips
• The following deduction in an amount between £150 and £5625
• Higher Rate Adjustment for taxed investment income
• Either of the following deductions in an amount between £499 and £2501
• Other Occupational Pension
• Personal Pension Annuity
• The following is present
• Loan Interest
• The following adjustment in an amount between £150 and £2501
• Job Expenses

• Professional Subscriptions

• Either of the following adjustments in an amount between £150 and £4501
• Gift Aid Payments Relief
• Personal Pension Relief

This form is issued in any year where

• Retirement Annuity Payments
• Were present in the CY-1 code

• The Allowance Cessation Date is in CY

• Expenses were present in the SA return for CY-2
• In excess of £150

• The case is no longer in SA

• Expenses are in the CY-1 code
• Between £1000 and £2501(a form P87 is also issued with the P810)

Note: If a form P810 is not sent back, another form will be issued automatically the following year provided the coding selection criteria are still present. This overrides the 3 year rule mentioned above.

The 3 year rule may be overridden if you consider that tax may be at risk if the individual only completes a form P810 every third year.

The P810 annual frequency indicator will be set where any of the following apply for the tax year

• The total tax savings and investment income is in excess of £5000 (net)

• Gift Aid payments exceed £5000 (net)

• There are four or more separate items on the individual’s record which have an amount which would normally trigger a P810 under the three year system rule.

For guidance about potential cases for SA see PAYE13140.

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Form P87

There are certain circumstances, dependent upon the type and amount of the expense claimed, where it will be necessary to issue form P87 to the individual or their agent

• Expenses are in the CY-1 code
• Between £1000 and £2501

However the system can only issue the P87 as an insert with another targeted review form, usually the P810.

Where you try to issue a P87 form without any other form the following error message will be displayed

For online issue the form needed to accompany the P87 is a P810.

If a manual P87 is required, you can print and issue the version available in the forms section of the Customer Adviser Guide.

Action to take on receipt of a P87 can be found at PAYE80000 onwards.

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Pensioner cases

In any case where either state pension / benefits is present on the individual’s record, no account will be taken of the upper limit. For example if an individual has occupational pension of £3,500 in their code and state pension / benefits is present on their record a form P810 will be issued.

We issue the P810 to try and deal with the pensioner’s tax affairs without the need for them to complete a SA return.