PAYE92035 - taxpayer end of year: posting P14 to taxpayer record: overview of responsibilities at the end of the tax year
Detailed information about what an employer does at the end
of the tax year and the various forms that they are obliged to
complete can be found within the ‘Employer Returns’
business area of this manual.
The following is a very brief summary, to provide an
overview, of the various people involved in the end of year
process.
The remainder of this subject is presented as follows
Banking Operations
Employer section
Department for Work and Pensions (DWP)
PAYE Errors Unit, Shipley (PEU)
Debt Management offices
Banking Operations
Banking Operations issue Annual Return forms (P35 and so on) to employers. Employers then submit their end of year PAYE return to the relevant processing office, or use electronic filing.
Employer section
The Employer section logs receipt of returns, and where forms P14 have been submitted on paper, send the relevant parts to National Insurance Contributions Office (NICO) for processing. Forms P14 will be processed by NICO and passed to the External Routing Interface Component (ERIC), along with electronically filed forms P14, from where they are passed on to taxes computer systems and National Insurance Recording System (NIRS).
Department for Work and Pensions (DWP)
The DWP submits P14 details for taxpayers who are still claiming Job Seekers Allowance (JSA) payments at 5 April, and these details are fed directly into COP, see PAYE92030 for more information.
PAYE Errors Unit, Shipley (PEU)
The PEU will consider all employer requests for a direction
under regulation 72(5) condition A of the PAYE Regulations 2003 and
in addition, will handle employer appeals if a direction is refused
and the taxpayer appeals if a direction is made.
An employer being pursued for payment of a PAYE
under-deduction, often discovered at End of Year, may ask for a
direction to be made if the employer believes reasonable care was
taken to comply with the Regulations and the under-deduction arose
through an error made in good faith (the ‘honest
mistake’).
A year cannot be cleared A, Z or T until the PEU deals with a
request and reports back to the Service Team.
Debt Management offices
Debt Management offices will eventually take over pursuit of any PAYE under-deductions for which the employer is liable, provided
- A direction under regulation 72(5) is not (or is no longer) in point, and
- An under-deduction remains unpaid
