PAYE90038 - taxpayer end of year: taxpayer underpayments: stranded underpayments list - direct voluntary payment requested (Action Guide)


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

To carry out the Assistant Officer duties required when reviewing the list of stranded underpayments, consider steps 1 - 10. The guide is presented as follows

Initial reviewSteps 1 - 2
New source of income or addressStep 3
Taxpayer unemployed or permanently retiredSteps 4 - 7
Part paymentSteps 8 - 10


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. Review the list 6 weeks after the request for a Direct Voluntary Payment was issued

  2. If you have received a form P209 / P211(Z) acknowledging receipt of full payment by the appropriate BF date, mark the entry on the list of stranded underpayments ‘Paid [date]’

Follow PAYE90011 for other action required on the record

New source of income or address

  1. If the taxpayer / agent has replied with details of a current source of income or new address use the Taxpayer Business Service (TBS) Function VIEW TAXPAYER SUMMARY DETAILS to identify the office now dealing with the taxpayer’s main source
  • Send the following e-form - standard 41A to that office

‘A stranded underpayment [amount] arises here at [date to which underpayments calculated]. TBS indicates you may have records for the same taxpayer. Please confirm that you now hold the taxpayer’s main record and the stranded underpayment will be included in the tax code.’

  • Make a note of this against the entry on the list of stranded underpayments ‘e-form to [office] [date]’. You need not retain a copy
  • When a reply is received note the list of stranded underpayments with the new office and reference

Taxpayer unemployed or permanently retired

  1. If the taxpayer / agent has replied that the taxpayer is unemployed or permanently retired
  • Establish if the RTN NSI or RTN INV signal is set
  • If either of the signals are set go to step 6
  • If these signals are not set go to step 5
  1. Check if there is a non PAYE source of income that has been coded or included in earlier year’s Informal Calculations
  • If a non PAYE source of income is not indicated refer the papers to an experienced Officer for a review of capital resources
  • If a non PAYE source of income is indicated go to step 6
  1. 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
  • 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]’
  1. If you are not part of an integrated COP / 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
  • Write to the taxpayer / agent explaining your actions and that the SA return will be issued shortly
  • Keep the case on BF until the SA team confirm the SA reference and issue of the income tax return

Part payment

  1. If only a part payment has been made or no payment has been received
  • Follow steps 3 to 21 in PAYE90011 for other action required on the record regarding P209 / P211(Z)
  • Go to step 9
  1. If you have received a form P211(Z) / P209 acknowledging receipt of only part payment of the underpayment
  • Follow steps 3 to 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 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 they should repay the balance
  • If the balance is not subsequently repaid see PAYE90037 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 ‘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 tax 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

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