Where a request is made to allocate surplus allowances to a spouse following the review of CESA work list W054, guidance from Step 2 should be followed.
On receipt of the review form follow steps 1 - 9 below. The guide is presented as follows
| 1. |
If all the items on the form have not been completed or the form is not signed |
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- Return the form to the individual asking them to fully complete the form and sign it
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- Create a manual entry in Contact History to record the action taken, PAYE105016
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| 2. |
If all the items on the form have been completed |
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- Log receipt of review form on Bulk Logging Targeted Review Form screen (PAYE79060)
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- Update IABD for the year of the form (using Form Type ‘575T’) and submit to trigger EOY reconciliation
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| 3. |
If reconciliation proceeds, and a transfer of surplus allowances is requested, establish the amount of unused allowances available for transfer for the earlier year and make a note of these |
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- Update IABD for CY/CY+1 with estimated income details based on the earlier years form (using Form Type ‘Other Form’) and submit to trigger a tax code calculation. The revised amount of unused allowances available for transfer will be automatically calculated by Coding and updated on IABD. Make a note of these amounts for CY/CY+1
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- Update the spouse / civil partner’s IABD record with the transferred allowances for the earlier year and submit to trigger an EOY reconciliation
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- Update the spouse / civil partner’s IABD record for CY/CY+1 with the transferred allowances (using Form Type ‘Other Form’) and submit to trigger a tax code calculation
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- In the scenario that the husband has a primary and secondary record, see PAYE130025
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| 4. |
If reconciliation proceeds, and transfer is not requested |
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- Update IABD for CY/CY+1 (using Form Type ‘Other Form’) and submit to trigger a tax code calculation
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- Update the spouse / civil partner’s CY/CY+1 code to remove any provisionally transferred surplus allowance
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| 5. |
If reconciliation cannot proceed, and a transfer of surplus allowances is requested follow ‘Create a work item (Action Guide)’ at PAYE110081 - create manual work item 238 selecting the reason ‘EOY Reconciliation’ from the drop down menu |
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- Note the work item with the year for which surplus allowances still need to be established and transferred to the spouse / civil partners record, and that the 575 has been captured
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- BF the work item for 3 months
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- Update IABD for CY/CY+1 (using Form Type ‘Other Form’) and submit to trigger a tax code calculation. The revised amount of unused allowances available for transfer will be automatically calculated by Coding and updated on IABD
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- Update the spouse / civil partner’s IABD record with the new amount of unused allowances for transfer and submit to trigger a tax code calculation
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| 6. |
If reconciliation cannot proceed and the individual / civil partner does not want the transfer of unused allowances to continue |
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- Update the spouse / civil partner’s IABD record for the earlier year and interim years up to CY and submit to trigger an EOY Reconciliation
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- Update the spouse / civil partner’s IABD record for CY/CY+1 to remove any amounts transferred (using Form Type ‘Other Form’) and submit to trigger a tax code calculation. There should be no surplus allowance in the code
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| 7. |
If the form 575T is not returned or the individual and spouse / civil partner are NNL see the guidance at PAYE79090 |
