PAYE92035 - Reconcile individual: posting P14 to individual 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 (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 including the National Insurance and PAYE Service (NPS).
Department for Work and Pensions (DWP)
The DWP submits P14 details for individuals who are still claiming Job Seekers Allowance (JSA) payments at 5 April. See PAYE78100 for more information.
PAYE Errors Unit (PEU)
The PEU will consider all employer requests for a direction under Regulation 72(5) Condition A of the PAYE Regulations 2003 and will handle employer appeals if a direction is refused or if the individual 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’).
For further information regarding directions made by the PEU see ‘PAYE errors unit (PEU)’ at PAYE92050.
Debt Management offices
Debt Management offices are responsible for collection of PAYE under-deductions due from the employer or for any PAYE tax determined under Regulation 80.
