PAYE93085 - taxpayer end of year: reviewing liability at year end: open case reason - failed tax table liability test

The computer system will review the 5 April pay and tax posted to the COP record for a year and compare the figures with the last tax code issued (whether this was operated or not). The figure shown on open list entries as either the under or overpayment is the difference between the computer system calculation and the tax shown on the P14, plus any potential underpayment arising in the year. Where the under or overpayment is within the tolerances the year is cleared ‘Z’ in COP Function CS, by the computer system.

These cases should be reviewed as early as possible to ensure that

• Any repayments are made more quickly
• Any underpayment caused by the employer under-deduction of PAYE is sought from the employer in the first instance, and
• Any other underpayments are notified quickly so that they can be included in the tax code for the earliest possible year

When carrying out the review you should include

• All relevant pay / tax information (particularly where there are periods of employment where a week 1 / month 1 code was operated)
• P11D information, and so on

You should obtain any P14 details through eOpen List, e-Services Filestore or the PAYE Browser.

You will also need to check ENOTES to see if there is any relevant P11D information, or if any relevant papers are held in the DR before you apply the tolerances. The tolerances also apply to any potential underpayment (PUP) and you should consider any knock on effects to review the tax code for CY or CY+1.

If the review reveals an underpayment of any amount that has arisen because the employer failed to deduct sufficient tax (perhaps by not using the correct code) follow the instructions that can be found in the following subjects

• PAYE92060 ‘Revision Of Employers Returns’
• PAYE92050 ‘PAYE Errors Unit’
• PAYE92065 ‘Under-deductions - Action Required In Service Teams’

If the review results in an underpayment that is outside the tolerances you should consider whether the Revenue Delay Provisions (ESC A19) apply, see EP6600 onwards for more information about ESC A19. If they do not apply you should collect the underpayment through the tax code taking care to ensure that it does not become stranded.

If the underpayment is more than £2000 you should follow the instructions at PAYE90025.