PAYE95055 - Reconcile individual: HMRC delay: ESC A19: information from the employer
If HMRC has failed to make proper and timely use of information received from an employer which affects a taxpayers coding and results in arrears, then ESC A19 should be considered. The following forms are the main employer forms which would affect a tax code.
The remainder of this subject is presented as follows
Form P45
Form P46
Form P46 (Pen)
Form P46 (Car)
Form P11D
Other Information
Form P45
Upon receipt of a form P45 indicating a new employment, HMRC should update the taxpayer’s record with the new employer details and make a decision to amend the code or allow the new employer continue with the code on the P45.
Form P46
Upon receipt of a form P46 indicating a new employment, HMRC should update or create a taxpayer record with the new employer details and review the information provided by the employer. HMRC should make a decision to amend the code reported or allow the new employer continue with the code on the P46 if it is the expected code for use.
Form P46 (Pen)
A form P46 (Pen) is used to notify HMRC that an employer is paying an occupational pension to a former employee or a Pension payer is making relevant pension payments to a recipient. As in a P46 case, HMRC should review the P46 (Pen) and make a decision to amend or continue with the code reported.
Form P46 (Car)
HMRC should update or amend a taxpayer’s code upon receipt of form P46 (Car). This will ensure that the taxpayer starts paying tax on the car without incurring a substantial underpayment after the tax year end.
Form P11D
HMRC updates or amends the current year tax code when a form P11D is captured.
The measure of the underpayment that may be considered is
- For cases where a previous year P11D has been captured, but the latest P11D has not been captured, the difference between the amount coded out and the forecast figure within the Employer Compliance System (ECS)
Or
- For new cases where a P11D has been received for the first time but not captured - the whole of the taxable benefit which was not included in the tax code for the year of receipt of the P11D
Other Information
Any other information which shows evidence of employer contact or correspondence which would affect a taxpayer’s code, received during the tax year can also be considered.
But, this does not include receipt of forms P35 or P14 which are employer end of year returns. This is because there is no process to amend a tax code or issue a tax code upon receipt of a P14, especially where the employer has failed to inform HMRC that the employment commenced.
If you cannot trace information from the employer that affects the taxpayer's coding, follow the line at PAYE95050.
