PAYE80032 - PAYE operation: review of claims and deductions: gift aid (Action Guide)

Where a form P810 is received showing an entry for Gift Aid and there is an increase or one off payment of £2500 or more follow steps 1 - 8 below, as appropriate. This guide is presented as follows

Initial action Steps 1 - 3
No reply cases Step 4
Reply received Steps 5 - 8

Initial action

1. Write to the customer and ask for evidence of payment. Explain that the information is needed to support the claim and if we receive no reply the claim will not be allowed
2. BF the case (PAYE105501) for 8 weeks
3. Do not amend the code

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No reply cases

4. If there is no reply
 
  • Do not allow the claim
 
  • Use note ‘P810 Info not returned’ available from SEES Office Clerical Assistant to record in Contact History that the claim has not been allowed
 
  • Review CY-1 and issue a tax calculation where appropriate, do not include Gift Aid in the calculation. The tax calculation should include the customer service message ‘P810 - No reply’ available from SEES Office Clerical Assistant
 
  • Review the code for CY and CY+1, without the CHR coding entry

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Reply received

5. If you are satisfied with the evidence provided
 
  • Review liability for CY-1
 
    • If a tax calculation is required, you should include the customer service note ‘P810 claim agreed as’ available from SEES Office Clerical Assistant
 
    • If a tax calculation is not required, write to the customer and thank them for their co-operation and advise them that no change is required to their figures
 
  • Amend the CY / CY+1 codes
 
  • Use note ‘P810 claim agreed as’ available from SEES Office Clerical Assistant to record in Contact History agreement of the expenses, and the amount of the expenses
6. If a reply is received by the BF date and you disagree with the information provided
 
  • Delete or amend the incorrect item in the calculation
 
  • Write to the customer and advise them
 
    • Of the revised taxable amount (include an explanation to show how you arrived at the amount) and your intention to issue an informal calculation for CY-1 and to amend the CY coding
 
And that
 
    • These will be issued in 30 days unless you hear from them further. You should also advise the customer that if they disagree, it will be necessary to issue a tax return. HMRC may then consider opening an enquiry into the completed return to challenge the figures disagreed with. If we do that they will be able to appeal against our conclusions and any additional tax that became due
 
 
  • Use SEES Office Clerical Assistant note ‘P810 claim not allowed / revised amount’ to record in Contact History details of the revised amount
7. If the customer does not respond by the BF date assume agreement and
 
  • Issue an informal calculation for CY-1
 
  • Amend the CY / CY+1 codes
 
  • Calculate the tax adjustment in favour of HMRC or the customer and record this for inclusion on the monthly LOMR report ‘Claims / Non SA Enquiries’
 
  • Use note ‘P810 claim not allowed / revised amount’ available from SEES Office Clerical Assistant to record in Contact History that you are not allowing the claim
8. If the customer disagrees
 
  • Write to the customer to explain that a Self Assessment return will be issued as this gives the customer the avenue to appeal
 
  • Set up the case in ITSA (or reactivate any dormant ITSA record) and issue a return for CY-1
 
  • Make a note in Contact History ‘Non return - P810 Gift Aid query’ and note action taken
 
  • Do not amend the code

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