PAYE91016 - Reconcile individual: overpayments: early repayments (Action Guide)

Obtaining evidence

Steps 1 - 11

Review of evidence

Steps 12 - 17

Take the following action to obtain evidence of pay and tax before making a repayment. Forms P60 and P14 are all acceptable evidence

1.

Review the claim for repayment and any attached documents, do not make enquiries if there is a gap in employment history of 10 weeks or more

2.

If form(s) P60 are enclosed go to step 16

3.

If form(s) P60 are not enclosed

• Use e-Services Filestore to check if P14 details are available

• If the P14 information is on e-Services Filestore go to step 16

• If the P14 information is not held go to step 4

4.

Write to the customer

• Explain that you do not hold their end of year pay and tax details for the year of claim and without this information their claim may be delayed

• Ask them for the original form(s) P60, using form P36B

• Put the claim papers away in the District Record (DR)

• Make a note in Contact History with details of the action taken

• Make a note in Contact History with the details of where the claim papers are held

5.

If you receive form(s) P60, go to step 16

6.

If you have not received form(s) P60 or the individual has replied on form P36B that the P60 is not available

• Use e-Services Filestore to check if the P14 details are now held

• If the P14 information is on e-Services Filestore go to step 16

• If P14 information is not held go to step 7

7.

If the individual has still not responded to form P36B or the P60 was previously unavailable, send a further request for form P60, with another form P36B to the individual

• Make a note in Contact History with the details of the action taken

• Make a note in Contact History with the details of where the claim papers are held

8.

If you receive form P60 go to step 12

9.

If you have not received form P60

• Use e-Services Filestore to check if the P14 details are now held

• If the P14 information is on e-Services Filestore go to step 12

• If P14 information is not held go to step 14

10.

If the individual has provided other evidence, for example a payslip for month 12 showing cumulative pay and tax

• Refer the case to a Higher Officer, explaining that P14 information is not available and you have been unable to obtain the P60 or other acceptable evidence from the employer. Attach the other evidence that the individual gave you and ask whether any repayment may be made on this evidence

• If the Higher Officer confirms that a repayment may be made, review the pay and tax in line with step 16

• If the Higher Officer decides that the evidence is not reliable go to step 15

11.

If the deadline for the employer to submit their P35 return has now passed, discuss the penalty position with a Higher Officer as we have an indication of tax deduction. The Higher Officer may want to consider penalty action if the scheme is not already on the potential action list from DMB

Before repayment, review the evidence supplied

12.

If the evidence is form P60, consider the following

• If form P60 does not appear to be on authorised stationary or is a photocopy

• Write to the individual explaining this and that you will not be able to consider the repayment without the original (or duplicate) form P60, or one on approved stationary

• If it appears that any part of form P60 has been altered, refer it to a Higher Officer

13.

If the evidence is P14, a letter on headed paper or form P60, consider the following

• Compare the entry on the evidence of total tax deducted with the tax actually deductible, based on the total pay on the evidence and the latest tax code for the year

14.

If the employer has deducted the correct amount of tax follow the Action Guide at PAYE91036 

15.

If it appears that the employer has deducted the wrong amount of tax

• Where the amount is more than £10 too much, write to the employer and ask them to explain the difference

• If the wrong figures have been used, write to the employer and ask them to take steps to avoid such errors in future

• Where the tax is too little, use e-Services Filestore to check if there is an additional form P14 for the year

• If there is an additional form P14, review this P14 in conjunction with the other evidence held from the beginning of step 13 of this action guide

• If an additional form P14 is not held, write to the employer and ask them to explain the difference. Consider whether a Regulation 80 determination may be needed - see PAYE54000 onwards

16.

In any event, repay on the basis of the pay and the tax actually deducted following the Action Guide at PAYE91036 

• Input the P14 or P60 details as a P60 to trigger the reconciliation. This should be done in the corresponding Employments screen. You should enter pounds and pence for both the pay and the tax figures. If the pay figure does not show pence you should enter ‘.00’ after the pay figure

• If the employment is not shown on the Employments Summary screen, PAYE61052 advises how to insert the employment

• Once reconciliation has been triggered follow the guidance at PAYE93040 which covers the reasons for overpayment

17.

Where the employer has made a tax refund and the P60 shows a minus tax figure, this should be entered into the employment screen as follows

• Insert the P60 tax figure for the employment where the refund has been made as tax in this employment 0.00

• Insert the P60 tax figure for the employment where the tax was deducted entering the amount originally deducted minus the amount repaid by thesubsequent employer

• Make a Contact History note of the actual tax figures