PAYE91026 - Reconcile individual: overpayments: form P45 review (Action Guide)

Code does not agree

Steps 1 - 6

Discrepancy between P45 parts or tax tables

Steps 7 - 15

Original parts of P45 found after repayment made

Steps 39 - 41

1.

Check if the code on the individual record agrees with the code on the P45

• If both codes are the same go to step 7

• If there is a difference between the codes, but you can account for the difference (for example, by an authorised Budget increase) go to step 7

• If there is a difference between the codes that cannot be easily accounted for

• • Write to the employer and request that they confirm that the code operated and the total pay and tax from the previous 6 April are as shown on the P45

2.

Create a manual work item (see PAYE110080) to BF item for 6 weeks

• 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

3.

If you have received a reply by the BF date and do not suspect the employer of gross neglect

• Go to step 7

4.

If you suspect the employer of gross neglect

• Report the case on e-form - standard form 41A to Debt Management and Banking (DMB)

• Go to step 7

5.

If you have not received a reply by the BF date send a reminder to the employer and go back to step 2

6.

When you have received a report from DMB, make any repayment and supplement, following action guides ‘Making a Repayment’ at PAYE91036 or ‘Unemployment Repayments’ at PAYE94061 

• Include on the R37 an explanation and use amended figures as if shown on the form P45 in the first place

7.

Compare the tax deducted on the P45 with the tax deducted in accordance with the tax tables

• If tax is under-deducted (This text has been withheld because of exemptions in the Freedom of Information Act 2000) and you do not suspect gross neglect by the employer, go to step 8

• If tax is over-deducted (This text has been withheld because of exemptions in the Freedom of Information Act 2000), go to step 8

• If tax under-deducted / over-deducted exceeds these limits go to step 8

8.

Compare the P45 part 1 details with the P45 parts 2 and 3 that the individual has sent in

• If there are parts missing go to step 16

9.

If there is no discrepancy between the figures on P45 part 1 and P45 parts 2 and 3 and the tax tables comparison in steps 7 and 8 gave a difference of

• Tax under-deducted (This text has been withheld because of exemptions in the Freedom of Information Act 2000) or

• Tax over-deducted (This text has been withheld because of exemptions in the Freedom of Information Act 2000) 

Follow action guides ‘Making A Repayment’ at PAYE91036 or ‘Unemployment Repayments’ at PAYE94061 

10.

If there is no discrepancy between the figures on P45 part 1 and P45 parts 2 and 3 and the tax tables comparison in steps 7 and 8 gave a difference of tax under-deducted (This text has been withheld because of exemptions in the Freedom of Information Act 2000) or tax over-deducted (This text has been withheld because of exemptions in the Freedom of Information Act 2000) 

• Report the case on e-form - standard form 41A to DMB

• When you have received a report from DMB

• • Make any repayment due, following action guides ‘Making A Repayment’ at PAYE91036, or ‘Unemployment Repayment’ at PAYE94061 

• • Include on the R37 an explanation, using the amended figures as if these had been shown on the P45 in the first place

11.

If there is a discrepancy between the figures on P45 part 1 and P45 parts 2 and 3 and it appears that free pay or some other incorrect figure has replaced gross pay on the P45

• Write to the customer and tell them what has happened

• Write to the employer and ask them to

• • Explain the discrepancy

• • Give the correct figures

• • Try to avoid the mistake again

• Give contact details for your local Business Support Team if the employer needs any help with their payroll responsibilities

12.

Create a manual work item (see PAYE110080) to BF item for 6 weeks

• 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

13.

If the details are provided by the employer by the BF date

• Enter the correct gross pay and tax deducted on parts 2 and 3 of the P45 (do this above or at the side of the incorrect figures)

• Enter the correct pay and tax deducted on NPS, PAYE62046 refers

• File the employer’s explanation with the repayment papers

• 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

14.

If the details are not received by the BF date send the employer a reminder and go back to step 6

Take the following action where you find any original parts of form P45 after repayment has been made

39.

If you find P45 part 1

• Compare it with the information submitted

• • If there is no discrepancy cancel the form and attach it to the repayment papers

• • If there is any discrepancy, investigate this in line with procedures set out in this action guide

40.

If you find P45 parts 2 and 3

• Compare them with the P45 part 1

• • If there is no discrepancy cancel the form and attach it to the repayment papers

• • If there is any discrepancy, investigate this in line with procedures set out in this action guide

41.

In deceased cases when you have seen all 4 parts of the P45 have been received and all 4 parts agree and part 1 details are recorded on the system you can destroy all 4 parts of the P45.

You must

• Use the following note ‘All Parts of the P45 from PAYE ref XXX/XXXX have been received and checked. P45 part (1) leaving details captured agree with leaving details shown on Parts 2 and 3'. All parts of the P45 scrapped’