PAYE93151 - taxpayer end of year: reviewing liability at year end: use of estimated figures (Action Guide)


When a base calculation has been made to decide whether a year may be cleared without issuing an informal tax calculation consider steps 1 - 13 below. The guide is presented as follows

Repayment dueSteps 1 – 7
Repayment not dueSteps 8 - 13


For details of how to action any of the COP Functions use the [Index of Functions] button on the left of the screen.

Repayment due

  1. Following the base calculation is a repayment due?

  • Yes - go to step 2
  • No - go to step 8
  1. Do you have all the information required to issue the repayment?

  • Yes - follow the instructions for ‘Making a repayment’ at PAYE91051
  • No - go to step 3
  1. Check whether missing P14 details are held on efile store

  • If they are held follow the instructions in ‘Making a repayment (Action Guide)’ at PAYE91051
  • If they are not held, go to step 4
  1. Where you do not have all the information required you should

  • Write to the taxpayer
  • Explain why you think a repayment is due (do not promise a repayment at this stage)
  • Ask them for the information that you require to complete the review of their liability for the year. Explain that without accurate figures a repayment can not be made
  • Use ENOTE ‘Informal Calculation - Estimated’ from SEES notes paster to record the details and action taken
  • BF the case for 6 weeks
  1. Has the information requested in step 4 been received by the 6 week BF date?

  • Yes - go to step 6
  • No - go to step 7
  1. Information received and

Tax calculation required and repayment is due as the overpayment is more than the tolerance

  • Follow the instructions in subject ‘Making a Repayment’ at PAYE91051

Or

Repayment is not due and any underpayment is within the tolerance

  • Use COP Function CS to clear the year ‘Z’
  • Remove the ENOTE ‘Informal calculation - estimated’ using COP Function NO
  • Use ENOTE ‘Informal Calculation - No repayment due’ from SEES notes paster to record that a repayment is not due and that the year has been cleared ‘Z’
  • Tell the taxpayer that a repayment is not due
  1. Is the outstanding information for JSA

  • Yes – estimate the amount of JSA. You must however, remember that where an estimated amount of JSAP is appropriate and is used in informal tax calculations issued to taxpayers, the explanation must clearly state that the amount is estimated and that the situation will be reviewed if accurate figures are provided
  • No - use COP Function CS to clear the year ’Z’ and use ENOTE ‘Informal Calculation - Estimated no reply’ from SEES notes paster to advise that no response has been received and the year has been cleared ‘Z’

Repayment not due

  1. Following the base calculation, is there an underpayment in excess of the tolerance?

  • No - use COP Function CS to clear the year ‘Z’
  • Yes - go to step 9
  1. Do you have all the relevant information to complete the review of the liability for the year?

  • Yes - issue the informal calculation using the correct figures held / provided
  • No – go to step 10
  1. Check whether missing P14 details are held on efile store

  • If they are held issue the informal calculation using the correct figures held / provided
  • If they are not held, go to step 11
  1. Where further information is required you should

  • Write to the taxpayer
  • Explain why you think that there is an underpayment for the year
  • Ask them for the information that you require to complete the review of their liability for the year. Explain that if they do not reply then you will issue the informal tax calculation making use of the estimated figures, and explain the procedures for collecting any resulting underpayment as outlined at PAYE90000 onwards
  • Use ENOTE ‘Informal Calculation - estimated’ from SEES notes paster to record your actions
  • BF the case for 6 weeks
  1. Has the information requested in step 11 been received by the BF date?

  • Yes - use COP Function AS to issue an informal tax calculation based upon the information now provided
  • No – go to step 13
  1. Use COP Function AS to issue an informal tax calculation based upon the estimated figures

  • Include a relevant explanation of the underpayment / collection
  • Use ENOTE ‘Informal Calculation - estimated no reply’ from SEES notes paster to record that a reply has not been received and that an informal calculation has been issued

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