PAYE90037 - taxpayer end of year: taxpayer underpayments: stranded underpayments list - check address (Action Guide)


Note: The steps set out in this action guide must be carried out by an Assistant Officer.

To carry out the Assistant Officer duties required when reviewing the list of stranded underpayments, consider steps 1 - 14. The guide is presented as follows

Initial reviewSteps 1 - 9
Address searchStep 10 - 13
RemissionStep 14


For details of how to access any of the COP functions use the [Index Of Functions] button on the left of the screen.

Initial review

  1. Use COP Function TD and the Taxpayer Business Service (TBS) Function AMEND TAXPAYER ADDRESS to check if you have an address in the United Kingdom to which correspondence can be sent
  • If an address in the United Kingdom is held go to step 2
  • If an address in the United Kingdom is not held go to step 9
  1. Send ‘Direct Voluntary Payment’ letter available from Forms and Letters in the Excel SEES menu to the taxpayer / agent, explaining why it is no longer possible to collect the underpayment through PAYE and asking for a voluntary payment to settle the liability
  • Follow steps 1 – 2 in PAYE90011 (‘Issue A Payslip For Payment Of Tax’) - to send a payslip with the letter
  • Use SEES notes paster to make the ENOTE ‘Direct voluntary payment requested’ to record the issue of the request for a direct voluntary payment and payslip
  1. If the underpayment is for CY-1, keep the papers on BF until either 31 January or 6 weeks after the issue of your letter, whichever is the later

  2. If the underpayment is for CY-2 or earlier, keep the papers on BF until 6 weeks after the issue of your letter

  3. If you have received a form P211(Z) / P209 acknowledging receipt of only part payment of the underpayment
  • Follow steps 3 - 21 in PAYE90011 to deal with the form P211(Z) / P209, before taking the following action
  • If the balance of tax unpaid is less than £2,000
  • Record the payment of tax
  • Use ENOTE ‘Voluntary payment received in part’ from the SEES notes paster to record that part payment has been received and to also note that the balance of the underpayment will be requested from the taxpayer / agent
  • Write to the taxpayer / agent acknowledging receipt of the payment and explain that the balance of the underpayment will be need to be paid
  • If the balance is not subsequently repaid go to step 14
  • If the balance of tax unpaid is £2,000 or more and you are part of an integrated COP / SA team, set up an SA record (or re-open any dormant SA record) for one year only and issue an income tax return for the year in question, following the instructions in the ‘Records’ business area of the SA Manual
  • Use SEES notes paster to make the ENOTE ‘Underpayment Exceeds £2000’,and the SA note ‘SA return sent to’ to record the SA reference and that an SA tax return has been issued
  • Mark the entry on the list of stranded underpayments ‘Part payment received (amount), SA return issued [date]’
  • If the balance of tax unpaid is £2,000 or more and you are not part of an integrated COP / SA team
  • Refer the underpayment to the SA team
  • Use SEES notes paster to make the ENOTE ‘Underpayment referred to SA' to note that an SA return has been issued
  • Write to the taxpayer / agent explaining your actions and that the SA return will be issued shortly
  1. Keep the case on BF until the SA team confirm the SA reference and issue of the income tax return

  2. If you have received a form P211(Z) acknowledging receipt of payment in full of the underpayment
  • Follow steps 3 - 21 in PAYE90011 to deal with the form P211(Z) / P209, before taking the following action
  • Record the payment of tax
  • Note the list of stranded underpayments that a payment in full has been received
  • Use ENOTE ‘Voluntary payment received’ from the SEES notes paster to record your actions and collection reference number
  • Write to the taxpayer / agent confirming receipt of payment in full of the underpayment of tax
  1. If you have not received a form P211(Z) acknowledging receipt of the payment by the appropriate BF date
  • If you are part of an integrated COP / SA team set up an SA record (or re- open any dormant SA record) for one year only and issue an income tax return for the year in question, following the instructions in ‘Records’ business area of the SA Manual
  • Use SEES notes paster to make the ENOTE ‘Underpayment Exceeds £2000’,and the SA note ‘SA return sent to’ to record the SA reference and that an SA tax return has been issued
  • Mark the entry on the list of stranded underpayments ‘SA return issued [date]’
  • If you are not part of an integrated COP / SA team refer the underpayment to the SA team
  • Use SEES notes paster to make the ENOTE ‘Underpayment referred to SA' to note that an SA return has been issued
  • Keep the case on BF until the SA team confirm the SA reference and issue of the income tax return
  1. If the address is abroad
  • If you are part of an integrated COP / SA team set up an SA record (or re- open any dormant SA record) for one year only and issue an income tax return for the year in question, following the instructions in the ‘Records’ business area of the SA Manual
  • Write to the agent / taxpayer explaining that the tax is now due and payable, confirm the SA reference and that the income tax return has been issued
  • Use SEES notes paster to make the SA note ‘SA return sent to’ to record the SA reference and that an SA return has been issued
  • Mark the entry on the list of stranded underpayments ‘SA return issued [date]’
  • If you are not part of an integrated SA team
  • Refer the underpayment to the SA team
  • Mark the entry on the list of stranded underpayments ‘SA team [date]’
  • Use SEES notes paster to make the ENOTE ‘Underpayment referred to SA' to note that an SA tax return has been issued
  • BF the case until the SA team confirm the SA reference and issue of the income tax return
  • Otherwise go to step 10

Address search

  1. Make enquiries to try and find a current address
  • Use the following to identify the new address if possible
  • e-Services Filestore
  • Available telephone directories and Royal Mail guides
  • PAYE browser
  • Voters List (if held in the office)

If a new address is found update the taxpayer’s record following the guidance at PAYE104065 and go back to step 1. Otherwise go to step 11

  1. Issue form MS120 to the last known employer
  • Use ENOTE ‘MS120 issued’ from the SEES notes paster to note the issue of the form
  1. BF the case for 6 weeks
  2. If the MS120 has been returned
  • With a new address
  • Update the address
  • Cleanse ENOTES
  • Go back to step 1
  • Without a new address go to step 14

Remission

  1. If the record has been reviewed following steps 1 - 13 and the stranded underpayment cannot be recovered, follow the steps in PAYE90031
  • Mark the entry on the list of stranded underpayments ‘passed to Officer for remission [date]’

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