PAYE96280 - Reconcile individual: reconciling CY-6 to CY-2: reconciling multiple years - years to 2007-08 inclusive
Note: You will need to be aware of the instructions at PAYE96250 before you include CY-6 and / or CY-5 in a multiple year reconciliation.
Where you are required to review a year up to and including 2007-08 (for example on receipt of a customer enquiry or when dealing with work item 037 (PAYE93061)) and all years concerned have already been reconciled through the PAYE Service, the customers records should be up to date and where required you can amend / add details to the calculations already issued and trigger a re reconciliation of the year(s) concerned.
However, as a result of the way in which information was migrated to the PAYE Service from COP, where you are called upon to review a year prior to and including 2007-08 and it has not already been reconciled through the PAYE Service, you will need to review and where necessary rebuild the customer’s PAYE Service records for the year(s) you are reviewing (and for all subsequent years up to and including 2007-08) before you trigger them to be reconciled. The records you need to review and whether they will need to be rebuilt prior to reconciliation being triggered, will be dependant upon your findings whilst reviewing the case as a whole but items you will need to consider and be aware of may include some or all of the following
- Employments - do we hold details of all relevant employments and if so does the PAYE Service hold the appropriate pay and tax details (each year) for them?
- JSA claims - where claimed, are full details of the amounts claimed held?
- Incapacity Benefits / Occupational Pensions - are any amounts coded out to be included in the tax calculations?
- P11D benefits - where there are entries in IABD can they be accepted as being correct or do they require updating?
- Expenses, untaxed interest and other IABD items - where there are entries in IABD can they be accepted as being correct or do they need updating?
- State Pensions - where State Pension details are present in IABD you will need to update the customer’s record to ensure that they carried in to the appropriate tax calculation(s). For cases where the customer has reached state pension age and no State Pension details are held in IABD, you will have to consider whether or not you need to include them for the year concerned and subsequent years
- Contact History and COP History notes - are there any notes on the customer’s record relevant to the year(s) being reviewed (for example details of employments not already held on the PAYE Service)?
Further details as to how you should deal with these items where they are found to be appropriate to the case being reviewed are given below.
Note: You will need to update all relevant areas of the customer’s records (both those indicated below and any others found during your review) before you trigger reconciliation.
The rest of this subject is set out as follows
For years up to and including 2007-08, known employment details were migrated from COP to the Employment screens within the PAYE Service and details of the pay and tax relevant to them display in the P14 SUMMARY / END OF YEAR RECORD SUMMARY screen. However, this screen reflects the details held on the NIRS database only and the details concerned will not be included in an end of year reconciliation calculation until they are posted on to the customer’s PAYE Service record, that is, until they appear in the PAY AND TAX SUMMARY screen within the customer’s record. You will need to be aware of this when reviewing the customer’s record and where pay and tax details for a known employment do not display in the PAY AND TAX SUMMARY screen for the year you will need to proceed as follows to capture them into the PAYE Service
- Make a note of the employment reference and pay and tax details displayed in the P14 SUMMARY / END OF YEAR RECORD SUMMARY screen
- Capture the pay and tax concerned as a P60 (PAYE61186)
Where your review of the cases (for example customer correspondence and / or Contact History notes) shows the customer had other employments to those already held on record, you will need to create the employment(s) concerned and capture the pay and tax relevant to them onto the PAYE Service. To do
- Using the customer’s NINO and any other information known, use TBS to trace details the employments
- Make a note of the employment references
- Use the TBS information obtained along with the customer’s NINO, access e- Services Filestore to obtain details of the pay and tax (each year) for each employment
- Create the employments on to the customer’s record (PAYE61052)
- Capture the Pay and Tax for each employment as a P60 (PAYE61186) onto the customer’s record
Where your review of the case indicates that the customer had a period in which they were in receipt of JSA and details of their claim are not held on their record, that is the P14U and / or a P45 (1) was not received, you will need to update the record (each year) to account for the amount(s) concerned. To do this, where the JSA claim
Was still live at the end of the given tax year (that is, 5 April)
- Ask the customer for sight of the relevant P60U
- On receipt
- Create the JSA ‘employment(s)’ onto the customer’s record
- Capture the P60U details against the employment(s) concerned
Was not live at the end of the given tax year
- Use the SEES ‘JSA Ready Reckoner’ calculator to estimate the JSA received
- Create the JSA ‘employment(s)’ onto the customer’s record
- Insert the estimated JSA details as P45-1U details against the relevant employment source(s)
Incapacity benefits / occupational pensions
Where your review of a case shows that the customer has coded incapacity benefits and / or an occupational pension in years up to and including 2007-08, the amount(s) concerned will not automatically be included in a tax calculation for the year by way of the fact the details are in IABD. The PAYE Service requires ‘employment’ and P14 details for the income concerned to be included within a calculation and for the purposes of rebuilding a customer’s record where either source of income is known to exist and an associated employment / P14 is not already held, you will need to proceed as follows
- Create the employment(s) onto the customer’s record
- For incapacity benefit cases only, use the information held to search e-Services Filestore for P14 details
- Capture the known income as a P60 against the relevant employment
For incapacity benefit cases, in the event that you are unable to trace a P14, you should use the claim information held along with the ‘SEES Benefits calculator’ to estimate the amount to be captured as a P60.
Where P11D benefits are shown in IABD for any year up to and including 2007-08, the amounts concerned will reflect the amounts included in a calculation already done on the PAYE Service or, the figures migrated to it from COP. Where the figures were migrated from COP they were migrated in the following order of preference
- Where a tax calculation was undertaken on COP; the amounts in IABD will reflect the benefits in the calculation, otherwise
- Where forms P11D were received and captured, the amounts will reflect the benefits on the forms P11D, otherwise
- Where present in IABD, the amounts will be the benefits coded in the year
You will need to be aware of this when reviewing years up to and including 2007-08 and unless you are required to specifically review the benefits in IABD (for example as a result of a customer enquiry) or, the result of your general review of the case indicates that they are incorrect, you should proceed as follows
- Where the year concerned was ‘Reconciled - Balanced’, ‘Reconciled - Underpaid’ or ‘Reconciled - Overpaid’ at the time the customer’s record was migrated from COP, accept the benefits in IABD as being correct
- Where the year concerned was manually reconciled on the PAYE Service between June 2009 and April 2010 and a SEES tax calculation was issued to the customer, before you trigger reconciliation for the appropriate year(s) you should proceed as follows
- Make a note of the DR storage reference at which the tax calculation is held
- Request the DR papers / tax calculation
- On receipt, manually update the benefits in IABD for the year(s) concerned
For cases where you need to review the benefit figures within IABD on receipt of a customer enquiry or, as a result of your general review of the case, before you trigger reconciliation for the appropriate year(s) you will need to proceed as follows
- Make a note of the reference(s) the P11D benefits refer to
- If required, access e-Services Filestore to obtain details of the benefits returned on the P11D(s)
Note: For all years up to and including 2007-08, once you have determined the benefits to be included in the customer’s liability, you will need to capture / recapture the amounts concerned into IABD as form type ‘P11D (MANUAL)’. This applies to both new benefit amounts and those already in the customer’s record (migrated from COP) that need to be included when determining their tax liability for the year.
Expenses, untaxed interest and other IABD items
As with P11D benefits detailed above, for years up to and including 2007-08, unless your review of the case (for example COP history notes) indicates otherwise or, you are reviewing the items concerned as a result of a customer enquiry, you can accept the figures already recorded in IABD as being correct. There may be occasions (due to the way in which information was migrated from COP) where Income, Allowances and / or Benefits recorded in IABD that need to be included in determining the customers liability are not accounted for when the appropriate reconciliation / tax calculation is triggered. Where this applies, to include the details in the calculation, you will need to recapture the figure(s) concerned into IABD and retrigger the reconciliation.
In other cases, that is where the figures in IABD are found / known to be incorrect you should use the information available (for example details provided by the customer) to update IABD for the relevant year(s).
Where your review of the case shows that the customer was in receipt of a State Pension in respect of any year being reviewed and details of it are already held in IABD and / or coding you will need to proceed as follows, each year, to ensure that the amount(s) concerned are included in the appropriate tax calculation
- Access the ‘IABD’ PENSIONS DETAILS screen for the year(s) concerned
- In the Frequency of Payment drop down menu, select ‘ANNUALLY’
- Select (that is check) the ‘Actual National Insurance Benefit’ checkbox
If no State Pension details are present in IABD, and the customer is over state pension age for any of the years being reviewed, unless you hold details to show that they have deferred receipt of the pension, you should follow the guidance at PAYE93036.
Contact History notes
Where Contact History and / or COP History notes are held on a customer’s record (for example notes regarding benefits and employments) you will need to consider them and where necessary update the PAYE Service to account for them.