PAYE92020 - taxpayer end of year: posting P14 to taxpayer record: initial review
Following the posting of the P14 details the COP computer system
will carry out the initial review.
The remainder of this subject is presented as follows
Tax table test
Sub source records
Main source records
Action when
year has been cleared
Tax table test
COP will use the pay shown on the P14 and the latest code on the taxpayer record (whether operated or not) and calculate the tax that should have been deducted. The cumulative basis is always used. This figure is then compared with the tax shown on the P14 together with any potential underpayment arising for CY-1.
Sub source records
In April 2007 all sub source records for 2006-07were
automatically cleared ‘T’ with blank pay and tax and
any new sub source records set up after that will also be cleared
at the monthly refreshes.
P231 printouts will not be produced for 2006-07 onwards.
Any cases where allowances have been allocated to the sub
source will be reviewed at the Initial Assessing stage and the main
source code will be adjusted to include those allowances that were
previously allocated to the sub source.
Main source records
If there is a difference between the tax due and the sum of tax
paid (taking into account any potential underpayment for CY-1) then
the record is left open for the year of review if the result is
outside the tolerances.
If there is an SA link, the record should be cleared SA.
If the result is within the tolerances, further checks are
made as follows. If any of the following apply the year is left
open for clerical review
- POTA or POTAC signals are set for the year
- MREV signal is set
- The record is an Inspector case
- There is a cancelled item for the year of review which has not been corrected
- For the year before the year of review there is a cancelled item which has not been corrected
- FT is the latest code on the record for the year of review
- The amount of underpayment coded for the year is greater than the amount of underpayment brought forward at 6 April
- The record shows that there is an overpayment at 6 April
- A working sheet has been prepared for the year of review
- There are no coding details on the record for the year of review
- The HRS signal is set, the record was set up in a previous year and the latest code on the record for the year of review is 0T or 0T Week 1 / Month 1
- The HRS signal is set and the record was set up after the end of the year of review
- The latest code for the year of review is BR or is prefixed D
- No tax is shown on the P14 and the SUB signal is set on the record
Where none of the above facts apply, the year is cleared either
- N, where no tax is shown on the P14, or
- Z, where tax is shown on the P14
Action when year has been cleared
Once the year has been cleared N, Z, T or SA as appropriate the taxpayer’s record is updated, and this can be seen in COP Function Clearance Summary (CS) as follows
- LAST YEAR CLEARED is updated wherever possible. This will usually be the year of review, but if earlier years remain uncleared (open) then LAST YEAR CLEARED will always show the year prior to the earliest open year (this cannot be earlier than CY-7)
- HOW CLEARED is updated to show N, Z, T or SA
- The office number is completed with the office numeral of the current employment (where the record is held at the time the year is cleared)
- Details of any underpayment at 5 April are completed, preceded by a minus sign
- Where there is no underpayment brought forward to the year of review, and no potential underpayment arose during the year, the entry is 0.00
- Where there is an underpayment brought forward to the year of review, or a potential underpayment arose during the year the entry is
-
- The amount of the underpayment brought forward plus
- The potential underpayment less
- Any underpayment included in the tax code for the year of review
