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

Form R40

This form is issued annually if the R40 signal is set on the taxpayer’s COP record.

Note: After the annual issue of form R40, the R40 signal is deleted from the record. It is important to reset the signal if, when examining the R40, it is clear that the case is still appropriate to remain within COP and a repayment can reasonably be expected for the following year.

Form 575T

This form is issued annually where

• MAT was present in the CY-1 coding

Or

• The 575 HUS signal (previously RTNHUS) is set on the record

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 (COMM)

• Any of the following deductions in amounts between £150 and £5625

• Any of the following deductions in amounts between £499 and £2501

• Any of the following are present

• Any of the following adjustments between £150 and £2501 (£150 and £501 up to 2003/04)

• Any of the following adjustments between £150 and £4501

Is issued in any year where

• Retirement Annuity Payments (RAR)

And

• EXP or PSUB were present in the SA return for CY-2

And

• EXP are in the CY-1 code

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 taxpayer only completes a form P810 every third year. You should certainly arrange for the annual issue of the P810 by using Function RI to enter ‘P810’ in the Review Form Required field and ‘P’ in the second field in the following cases

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

Or

• Gift Aid payments exceed £5000 (net)

Or

• There are four or more separate items for which form P810 information is needed

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 taxpayer or their agent.

Instructions on issuing form P87 and subsequent action to take can be found at PAYE80000 onwards.

Pensioner cases

In any case where either NIBACT or NIBEST is present on the COP record, no account will be taken of the upper limit. For example if a taxpayer has OCCP of £3,500 in their code and NIBACT is on the record a form P810 will be issued.

We issue the P810 to try and deal with the pensioners tax affairs without the need for them to complete a SA return. In many cases this will result in the issue of a K code. You will need to check that the K code you intend to use will not exceed the 50% K code limit. Further information is available at PAYE14050.