PAYE21022 - Employer records: maintain employer record: cancelled one year only (COYO) 2008 onwards (Action Guide)

To clear a year on an employer record cancelled one year only, follow steps 1 - 32 below. The Guide is presented as follows

Initial action	Steps 1 - 7
PSC schemes	Step 8
P Scheme Type	Step 9
Updating the employer record	Step 10
EBS shows year not live	Steps 11 - 13
Employer record has moved	Steps 14 - 16
Year already cleared	Step 17
Large employer	Step 18
Incentive appeals	Steps 19 - 21
Filed online indicator set	Step 22
Final review	Steps 23 - 31
Final action	Step 32

For details of how to access any of the Employer Business Service functions use the [Index of Functions] button on the left of the screen

Initial action

1.	Ensure that no return is appropriate
	If you do not hold a return
	Review the papers held
	Consider whether a determination under Regulation 80 is appropriate
	A check must be made to establish whether any payments have been allocated against the employer record for the year
2.	Use Function VIEW BROCS Format 3 (Postings Summary) to identify any payments made by the employer / contractor in the tax year relating to the return
	If payments are shown on BROCS - make a note of the amounts and the dates of payment, - go to step 3
	If there are no payments shown on BROCS - go to step 7
	Where you find that payments have been allocated to the year
3.	Use Function VIEW BROCS Format 9 to check whether the Class 1A NIC signal is set
	If the signal is set - go to step 7
	If the signal is not set, telephone the employer / contractor immediately - go to step 4
	Note: Where you are dealing with COYO between 6 and 30 April you must check BROCS for both CY-1 and CY-2. This is because CLIA signals are not updated on BROCS for CY-1 until mid to late April.
	Nil Return
4.	If you have received a nil return
	Ask the employer to explain why the amount was paid and not entered on the return Or
	Ask the employer to explain why the amount was paid and they have told you that a return is not due
	Note: For a PSC scheme, ask the employer to confirm that the money paid relates to subcontractor payments. Where this is the case, go to step 8.
5.	Use the information supplied by the employer to decide whether the payment has been allocated correctly or not
	If the payment has been allocated incorrectly
	Arrange for BROCS to remove the payment from that year and to reallocate this correctly. For more information see subject ‘Overpayments and reallocations’ PAYE47075 - go to step 7
	If the payment has been allocated correctly
	Advise the employer that they must submit a complete return
	If you hold a return go to step 6
	Otherwise
	Use Employer Notes to confirm that a return is due for the year and take no further action
	Incomplete return
6.	Send the return back to the employer / contractor requesting a complete return. For more information see the Action Guide menu ‘Checks prior to recording receipt of a return’ PAYE40016
7.	Use Function VIEW BROCS to check whether the CLASS 1A NIC EMP signal is held on the employer record
	If this signal is held you must follow the instructions in the Action Guide ‘Nil returns - 2005 onwards’ PAYE43031 to process a nil return
	Otherwise go to step 9

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PSC schemes

8.	Where the employer has confirmed that a P35 is not required
	Use Function AMEND EMPLOYER TRADE AND SCHEME to update the scheme type to XP as in the Action Guide at PAYE27035
	Review and update the scheme type for subsequent years

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P Scheme Type

9.	Where the employer has confirmed that a P35 is not required go to step 10

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Updating the employer record

10.	Use Function CANCEL SCHEMES ONE YEAR ONLY or Function AMEND EMPLOYER INDICATORS to clear the year cancelled one year only (COYO)
	If there are no exceptions you will have successfully cleared the year ‘cancelled one year only’
	If the year is not live go to step 11
	If the employer record has moved go to step 14
	If the year has already been cleared go to step 17
	If the employer record relates to a large employer go to step 18
	If an error message relating to incentive appeals is displayed go to step 19

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EBS shows year not live

	If any of the following apply you will be unable to clear a year cancelled one year only
	The employer record is cancelled
	The start date is later than the year on the return
	The employer record is dormant
	The employer record is ceased
11.	Review the papers and check that the correct year was entered
12.	If the correct year was not entered
	Use Function CANCEL SCHEMES ONE YEAR ONLY or Function AMEND EMPLOYER INDICATORS again to update the employer record as cancelled one year only (COYO) against the correct year
13.	If the correct year was entered
	No further action is required as the year is already cleared

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Employer record has moved

	This action must be taken when you have been unable to clear a year cancelled one year only because the employer record has moved. This could be where the employer record has been
	Transferred
	Merged Or
	Succeeded
14.	Use Function AMEND or VIEW EMPLOYER SCHEME HISTORY to view the new employer reference
15.	If the new employer reference remains in your responsible Organisation Unit
	Use Function CANCEL SCHEMES ONE YEAR ONLY or Function AMEND EMPLOYER INDICATORS again to record the year on the employer record as cancelled one year only (COYO)
	Otherwise
16.	Send the correspondence to the new office immediately

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Year already cleared

	This action must be taken when you have attempted to clear a year cancelled one year only where
	The cancelled one year only (COYO) indicator is already set
	A return has already been received and a charge has been processed
17.	Review the papers and check that the correct year was entered
	Use Function CANCEL SCHEMES ONE YEAR ONLY or Function AMEND EMPLOYER INDICATORS again to update the employer record as cancelled one year only (COYO) against the correct year
	If the correct year was entered no further action is required as the year is already cleared

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Large employer

	This action must be taken if you have attempted to clear a year cancelled one year only and the employer record has more than 1000 employments attached to it.
18.	Review the papers held to establish if it was appropriate to attempt to cancel the year one year only
	If this was not the correct action you must take alternative action to clear the year, for example obtaining a completed return or ceasing the employer record Otherwise
	Select the [Confirm] button to initiate the computer check

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Incentive appeals

19.	Take the following action if you are presented with the following error message
	‘There is an Open Incentive Appeal for the year’ go to step 20 Or
	‘There is an Upheld Incentive Appeal for the year’ go to step 21
20.	B/F the papers for 14 days until the outcome of the incentive appeal is known
	If the appeal is either withdrawn or denied use either of the following functions to record that the employer record for that year is cancelled one year only (COYO)
	Function CANCEL SCHEME ONE YEAR ONLY
	Or
	Function AMEND EMPLOYER INDICATORS
	If the appeal is upheld go to step 21
21.	The record cannot be cancelled one year only

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Filed online indicator set

22.	If you are presented with the following error message the record cannot be cancelled one year only
	‘A return has been Filed Online for the year’
	No further action is required as the year has already been cleared

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Final review

23.	Use Function VIEW EMPLOYEES
	Select 'Linked Employees'
	Where there are more than 10 employees - go to step 24
24.	For each employer record that has live employee records attached send an email to the relevant PAYE section's WAM to advise them of the year for which you are setting the COYO indicator
	When a year has been cleared by setting ‘cancelled one year only’ or processing a nil return, it is essential that you ascertain the situation for the current year
25.	Use Function View EMPLOYER SCHEME HISTORY to check whether a Cessation Date is held
	Where a Cessation Date is recorded, no further action required - Go to Step 32 Or
	Check if any of the following are held on the employer record
	Use Function VIEW BROCS, format 3 to check if any payments have been received for the current year
	Use Function VIEW BROCS, format 9 to check whether the CLASS 1A NIC indicator is held
	Or
	Use Function VIEW EMPLOYEES co check whether any of the live employees displayed have a Commencement Date later than 06/04/CY
	If any of the above are held on the employer record, no further action is required - Go to Step 32 Otherwise
	Go to Step 26
26.	Contact the employer
	If you contact the employer by telephone - go to step 27 Or
	If you unable contact the employer by telephone - go to step 28
27.	Where you contact the employer by telephone
	If, for the current year, the employer makes any of the following - go to step 32
	Making payments to directors / employees that are at or above the lower earnings limit
	Making payments to any directors / employees who have another job / income
	Providing expenses and / or benefits to directors / employees
	Or
	Making payments to subcontractors
	If the employer is not making any of the above - go to step 31
28.	Where you are unable contact the employer by telephone
	Issue review letter 1 (Word 126KB) together with review stencil (Word 32KB) to the employer
	Use Function AMEND EMPLOYER INDICATORS to set the POST indicator
	BF papers for 30 days - go to step 30
29.	When the employer returns the stencil your next action will depend on the answers provided
	Where the employer confirms that the business has ceased
	Use Function AMEND EMPLOYER SCHEME HISTORY to enter the actual cessation date if this falls within CY
	Or
	31 March CY-1 if the actual cessation date is prior to 31/03/CY-1
	Note: Where the scheme type is PSC or XP you must enter a ‘Date Notified’, which is the date you received the information or select one of the following check boxes
	‘Date Not Known’ - where you do not know the date you received the information
	Or
	‘Date Not Applicable’ - where the update is being made from information not received from the employer
	Where the employer confirms that no payments are being made or benefits / expenses provided
	Use Function AMEND EMPLOYER SCHEME HISTORY to enter 31/03/CY-1 as the cessation date Issue review letter 3 (Word 130KB)
	Where the employer confirms that payments are being made or benefits/expenses provided
	Use Function AMEND EMPLOYER TRADE & SCHEME DETAILS to check that the scheme type held for CY is correct and update if necessary
30.	At BF date
	If the employer has returned the stencil no further action is required Or
	If the employer has not returned the stencil - go to step 31
31.	Use Function VIEW EMPLOYEES, - LIVE EMPLOYEES
	Where there are live employees
	Forward a request to the PAYE section to enter a cessation date of 31/03/CY-1
	BF papers for 30 days to check that there are now no live employees
	Where there are no live employees
	Use Function AMEND EMPLOYER SCHEME HISTORY to enter 31/03/CY-1 as the cessation date
	Note: Where the scheme type is PSC or XP you must enter a ‘Date Notified’, which is the date you received the information or select one of the following check boxes
	‘Date Not Known’ - where you do not know the date you received the information Or
	‘Date Not Applicable’ - where the update is being made from information not received from the employer
	Use Function AMEND EMPLOYER INDICATORS to remove the POST indicator
	And
	Issue review letter 2 (Word 130KB) to the employer