PAYE90035 - taxpayer end of year: taxpayer underpayments: stranded underpayments

Stranded Underpayments are underpayments that cannot be cleared by coding and for which other instructions do not provide a means of collection.

A stranded underpayment includes any potential underpayment that cannot be effectively cleared by coding because the taxpayer has

• Ceased employment
• Died
• Gone unknown
• Removed abroad

Uncleared / stranded underpayments list

The computer reviews and prepares lists of stranded underpayments towards the end of each tax year. These identify taxpayers, unemployed since at least the previous 5 April, whose records show an underpayment at that date. The lists are controlled by the Officer responsible for the office balance. You must review all stranded underpayments on the lists, including JSA cases.

If you receive a list stating ‘The review of taxpayers records has revealed that there are no relevant cases in your district’ put it in the Stranded Underpayments establishment file and take no further action.

Where there are relevant cases you will receive lists headed

• ‘Stranded underpayments (year) list of cases for remission without further review’ or
• ‘Stranded underpayments (year) and cases listed under category B are within the limit for remission by the district. Remaining cases listed under category C require Enforcement office authorisation before remission’

Refer to the Action Guides on ‘Stranded Underpayments’ at PAYE90036 for instructions on how to deal with these.

Possible duplicate record

If the stranded underpayment was notified on a list to the current office, it means for that record, COP sees that office as still having responsibility. The records will need to be merged, and the new office should look at both records and decide which is the most complete. They will then either have to delete their own record and transfer this one, or ask the stranded underpayment office to delete theirs and send on the printout.