PAYE28014 - Employer records: modified PAYE schemes: employees seconded abroad - EP Appendix 7B arrangements: NICs Settlement Return (Action Guide)
To deal with the receipt of a NICs Settlement Return (NSR) follow steps 1 - 16 below. The Guide is presented as follows
Steps 1 - 5
Steps 6 - 8
The NSR shows an additional amount of NIC due
Steps 9 - 15
The NSR shows a refund of NICs
Step 16
The NSR balances or is a nil return
Initial action
On receipt of an NSR
1. Ensure a P35 has been received under the employer’s main PAYE reference
2. Process any payment in accordance with PAYE50015
3. Use the e-Filestore to check that the figures in columns D to F on the NSR agree with the P14 NIC figures (Excel 77KB) submitted with the P35 under the employer’s main PAYE reference
4. Is there a discrepancy at step 3?
- If yes, go to step 5
- If no
- Go to step 6 if the NSR shows an additional amount of NIC due
- Go to step 9 if the NSR shows a refund of NICs
- Go to step 16 if the NSR balances or is a nil return
5. Return the NSR to the employer asking to explain the discrepancy
The NSR shows an additional amount of NIC due
6. Is the amount entered in Column E of the NSR greater than zero?
- If yes, go to step 7
- If no, go to step 8
7. Process the ‘Total NIC settlement amount’ shown on the NSR under the EP Appendix 7B employer reference
8. Take the following action
- Process the ‘Total NIC settlement amount’ shown on the NSR under the EP Appendix 7B employer reference
- Send a copy of the NSR to NICO (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
- Issue letter 1 (Word 28KB) to the employer or employer’s representative
The NSR shows a refund of NICs
9. Is the refund of Class 1 secondary and / or primary NICs on earnings above the UEL?
- If yes, go to step 10
- If no, go to step 13
10. Is the refund due to the employer because
- The NICs was paid by the employer under social security equalisation and without recovery from the employee, or
- They are supported by mandates authorising refunds to be made to the employer?
- If yes, go to step 11
- If no, go to step 12
11. Take the following action
- Process the NSR as an additional complete P35 at Return Status Indicator (RSI) 2 with 0 (zero) forms P14 under the employer’s main PAYE employer reference
- Use either EBS function Cancel One Year Only (COYO) or Amend Employer Indicators to set COYO indicator on the EP Appendix 7B employer reference
12. Take the following action
- Send a copy of the NSR to NICO to make the refund(s) to the employee(s) (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
- Process the NSR as an additional complete P35 at Return Status Indicator (RSI) 2 with 0 (zero) forms P14 under the employer’s main PAYE reference to refund to the employer the secondary NICs shown on column M
- Use either EBS function Cancel One Year Only (COYO) or Amend Employer Indicators to set COYO indicator on the EP Appendix 7B employer reference
- Issue letter 2 (Word 23KB) to the employer or employer’s representative
13. Is the refund of primary NICs between the LEL and UEL and above the UEL due to the employer because
- The NICs was paid by the employer under social security equalisation and without recovery from the employee, or
- They are supported by mandates authorising s to be made to the employer?
- If yes, go to step 14
- If no, go to step 15
14. Take the following action
- Process the NIC refund shown on the NSR under the employer’s main PAYE reference
- Use either EBS function Cancel One Year Only (COYO) or Amend Employer Indicators to set COYO indicator on the EP Appendix 7B employer reference
- Pass a copy of the NSR to NICO to update the employees NIC record (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
- Issue letter 1 (Word 28KB) to the employer or employer’s representative
15. Take the following action
- Pass a copy of the NSR to NICO to make the refunds to the employees (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
- Process the NSR as an additional complete P35 at Return Status Indicator (RSI) 2 with 0 (zero) forms P14 under the employer’s main PAYE reference to refund to the employer the secondary NICs shown on column M
- Use either EBS function Cancel One Year Only (COYO) or Amend Employer Indicators to set COYO indicator on the EP Appendix 7B employer reference
- Issue letter 3 (Word 24KB) to the employer or employer’s representative
The NSR balances or is a nil return
16. Take the following action
- Use either EBS function Cancel One Year Only (COYO) or Amend Employer Indicators to set COYO indicator on the EP Appendix 7B employer reference
- If the NSR shows the primary NICs between the LEL and UEL has altered for any of the employees send a copy of it to NICO to update the employees NIC record (This content has been withheld because of exemptions in the Freedom of Information Act 2000)