SAM125121 - Returns: returns work lists: w037 reduction of amount coded out (Action Guide)

Where there is an entry on the ‘Reduction of Amount Coded Out’ work list, follow steps 1 - 16 below.

For details of how to access any of the SA functions, select ‘Index Of Functions’ on the left of the screen.

This guide is presented as follows

In all cases Steps 1 - 4
If the amount has decreased Steps 5 - 10
If the amount has increased Steps 11 - 16

In all cases

1. In function WORK LIST CASES
 
  • Select the entry that you want to work
 
  • Select the [View] button. You will be taken to function SELECTED CASE to see all available details on the work item
 
  • Make a note of the details, if required
2. Use function VIEW STATEMENT to determine whether the Balancing Payment has increased or decreased
  Note: Where the work item was created because of a change to a potential underpayment, it may not be clear whether the result is an increase or a decrease.
3. If the amount has decreased follow steps 5 - 10 below
4. If the amount has increased follow steps 11 - 16 below

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If the amount has decreased

5. Check SA Notes to see if the balancing payment has been transferred back from NPS to SA (SAM140032 refers)
 
  • If so, the Sundry Charge must be reduced to Nil and then recreated in the lower amount. To do this follow steps 6 and 7, then step 10
 
  • If the balancing payment has not been transferred back to SA, follow step 8 onwards
 

Balancing payment transferred back from NPS to SA
6. View the statement on which the sundry charge appears and
 
  • View the line showing the sundry charge and note the ‘Charge Due Date’
 
  • Reduce the amount to Nil
 
  • Select Exit
7. Use function CREATE SUNDRY CHARGE in SA to
 
  • Enter the year of underpayment in the ‘Year ending 5 April’ field
 
  • Enter the ‘Charge Due Date’
 
  • Enter the ‘Charge Type - Net Underpayment’
 
  • Enter the reduced amount of the underpayment
 

Balancing payment remains on NPS
8. Update the PAYE Service ACCOUNTING function with the revised amount to be collected. Annual coding will pick up the details. For more information see the PAYE Manual, subject ‘Accounting: End of year: SA Underpayments’ (PAYE98005)
9. If annual coding has already taken place, use PAYE Service IABD (Income, Allowances, Benefits and Deductions) to amend the code for CY+1
10. Use SA function WORK LIST CASES or function SELECTED CASE to manually delete the work item. Select the [Del] button
  Note: If the PAYE Service ACCOUNTING function shows the underpayment has been cleared in full or part by a Voluntary Direct Payment (VDP), any amount of overpaid VDP must be transferred to the SA record. For more information see subject ‘Voluntary Direct Payments’ (SAM140040).

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If the amount has increased

 

If all of the following conditions are met
 
  • The amendment was received on or before 30 November and processed on or before 31 December
 
  • The balancing payment including the increase is £1999.99 or less
 
  • The return does not include a request not to code the amount
 
  • There is a live PAYE record
 
  • The whole of the underpayment can be collected in one year
11. Use function RECORD TRANSFER TO COP to transfer the further underpayment from the SA record
12. Update the PAYE Service ACCOUNTING function to record the total amount transferred (original amount plus increase)
13. If annual coding has already taken place, use PAYE Service function IABD (Income, Allowances, Benefits and Deductions) to amend the code for CY+1
14. Use function WORK LIST CASES or function SELECTED CASE to manually delete the work item. Select the [Del] button 
 

If any of the conditions above are not met
15. Follow step 16. The increase in the balancing payment will be collected via the SA statement
16. Use function WORK LIST CASES or function SELECTED CASE to manually delete the work item. Select the [Del] button

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