PAYE94020 - Reconcile individual: in-year reconciliation: special circumstances
Before making a repayment, you should check whether any of the following apply and follow the guidance as appropriate.
This subject is presented as follows
Jobseeker’s / Employment Support Allowance received
Statutory Maternity Pay received
Old age or incapacity
Admission to university or other educational establishment
Individual is in prison
Individual has died
Personal / domestic employees
Job Release Schemes
Employment related benefits included in the code
Jobseeker’s / Employment Support Allowance received
Although an individual cannot routinely claim an in-year repayment of tax whilst claiming Jobseeker’s or Employment Support Allowance, repayments can be made in the following circumstances
- Trivial Commutation cases (PAYE94046)
- Where the customer has received a redundancy payment that has been subjected to higher rate tax deductions (PAYE94055)
Statutory Maternity Pay received
An employer who pays Statutory Maternity Pay (SMP) after issuing form P45 has to deduct tax at the basic rate. In some cases the recipient may be entitled to repayment of some or all of this tax. As SMP can be paid for up to 26 weeks in the year in which the employment ceased and the following year, both need to be reviewed.
Old age or incapacity
Information and action guides regarding pensioners can be found at PAYE76000 onwards.
Admission to university or other educational establishment
Where a person
- Leaves work to go to university or another educational establishment
And
- Claims a cessation repayment
A repayment can be made in the usual way where the individual
- Receives full-time instruction at a university, college or other educational establishment
And
- Is unlikely to take up further employment before 6 April next
Individual is in prison
Repayment can be made where the individual is in prison or Young Offenders Institution. For action required on the payable order follow the action guide at PAYE94021 steps 20 - 23.
Individual has died
Repayment can be made where a claim is received on the form R27 issued to the personal representative. Where an individual has been within PAYE or making annual R40 claims, then any repayment due should be made from the PAYE Service as appropriate. See PAYE103017.
The capacitor information on the R27 must be recorded on the system before you attempt to trigger reconciliation.
You must also remove the Manual Correspondence signal before you attempt to trigger reconciliation.
Personal / domestic employees
Employers who have personal / domestic employees operate the simplified PAYE scheme and do not issue a form P45 if the employee leaves. The employer will instead send in a P12 working sheet when they have paid the employee for the last time. You will be sent a P12R from the Employers Section.
Treat this as a form P45, enter the details in the Maintain Employment screen and make the repayment in the usual way.
Job Release Schemes
Never make a cessation repayment to an individual within the job release scheme.
Employment related benefits included in the code
Estimated benefit figures can be used for in-year repayments where benefits are included in the code and the benefits do not fluctuate greatly from year to year. Where an in-year cessation repayment is requested you should apportion the benefit details to the date of leaving; with the exception of medical benefit which should only be apportioned if you have information that it should be. This will relieve the burden on employers as you will only need to contact the employer if the benefits fluctuate greatly from year to year.
