PAYE96240 - Reconcile individual: reconciling CY-6 to CY-2: reconciling multiple years - re reconciling years

Note: Multiple year reconciliations will only be triggered automatically by the system for years 2008-09 and later, see PAYE96201.

Where a year that was previously part of a multiple year reconciliation needs to be re reconciled, all years covered in the original reconciliation onwards, starting with the year now being re reconciled, will be reviewed. Whether or not the new reconciliation follows the multiple year or single year processing rules will depend on the year being re reconciled, that is, in a case where the original multiple reconciliation covered 3 or more years

• And the year being re-reconciled leaves 2 or more subsequent years requiring re reconciliation, the years concerned will be included in a new multiple year reconciliation. For example, in a case where the original multiple year reconciliation covered CY-4 to CY-1 and CY-3 is being re reconciled, a new multiple year reconciliation covering years CY-3 to CY-1 will be undertaken

• Where the year being re reconciled is the last one included in the original multiple year reconciliation, the year concerned will follow single processing rules. For example, in a case where the original multiple year reconciliation covered CY-4 to CY-1 and CY-1 is being re reconciled, single year processing covering CY-1 only will be undertaken

In a case where the re-reconciliation is automatically triggered by the system, for example on receipt of a P14 or ‘Earlier Year Update’ (EYU), where it is

• Possible to re reconcile all relevant years (CY-3 to CY-1 in the example above) all relevant tax calculations will be issued automatically and the customers PAYE Service Reconciliation and Accounting records will be updated with details of the calculations issued
• Not possible for the system to automatically re reconcile the case

• • As the system identifies more than 5 reasons as to why the customer is over / underpaid, work item 300 (PAYE93057) will be created to allow the case to be reviewed manually
  • Because something has changed preventing all relevant years to be included in a re reconciliation, work item 315 (see SPD WI315) will be created to allow the case to reviewed manually

In a case where the re reconciliation is triggered online, for example by input of a P60 and

• It is still possible to undertake a multiple year re reconciliation, you will be presented with the Multiple Years Reconciliation screen showing the years to be covered in the re reconciliation to allow you to review the years concerned
• It is no longer possible to re reconcile the appropriate years, you will be presented with the message ‘The system cannot re-reconcile the same tax years as previously reconciled. Further investigation is required’. Follow SPD WI315 to resolve matters

In a case where a multi-year re reconciliation takes place, and the final years status taking into account tax already refunded is now ‘Reconciled - Balanced’, the status of the earlier years may ‘Reconcile - Overpaid’ repaying tax which has already been repaid through the later year. Where this situation is identified see SPD 32.