PAYE96315 - Reconcile individual: simple assessment: multiple year reconciliation process

From November 2019 the multiple year reconciliation process will include the creation and inclusion of Simple Assessment years. 

Note: Simple Assessment is only appropriate to tax years 2016-17 onwards.

The system will check the cumulative result of all years included in a multiple year reconciliation, including voluntary payments, overpayments and outstanding debts where appropriate.

Calculating the cumulative result

NPS will continue the multiple year reconciliation processing depending on the result of the cumulative calculation:

  • Where the cumulative result is Balanced or Overpaid, no Simple Assessment years will be created. Years will continue to reconcile in line with PAYE Processing.
  • Where the cumulative result is Underpaid and the underpayment can be coded, no Simple Assessment years will be created. Years will continue to reconcile in line with PAYE Processing.
  • Where the cumulative result is Underpaid the system will review each year in isolation to identify:
  • Unreconciled Self Assessment years
  • Years Overpaid or Balanced in isolation
  • Years reconciled underpaid in isolation – (these will be Simple Assessment years)

New Self Assessment years

Any new or existing years that are recognised as Self Assessment will be Reconciled – SA.

Creation of a Simple Assessment year

NPS will identify any new Simple Assessment years. Where an underpayment has been coded out and carried forward into a Simple Assessment year, when the tax paid is more than the carried forward amount, the system will include the carried forward amount against the tax paid (PAYE96325).

When the tax paid is less than the amount coded out it will be returned to the originating year and will be collected by Simple Assessment (PAYE96325).

Where the new Simple Assessment year includes an In Year Adjustment which was not from an earlier year the In Year Adjustment will be cancelled in line with PAYE processing.

If all years from CY-1 to CY-4 include a carried forward amount from an earlier year the system will review CY-5 and CY-6. Any reconciliation or re-reconciliation including updates to CY-5 and CY-6 will have specific rules for inclusion in a multiple year reconciliation (PAYE96330).

Where a first time reconciliation, results in Simple Assessment, any coded out ‘outstanding debts’ in the Simple Assessment year will be cancelled. Where a re-reconciliation results in a Simple Assessment, any coded out outstanding debts will be treated as tax already paid as per current PAYE processing rules.

Where a year is reconciled underpaid Simple Assessment year the Accounting/ Financial Details screens will show the underpaid amount as ‘collected’ and ‘sent to ETMP’.

The ‘Multiple Year Reconciliation Summary’ screen and the ‘Reconciliation Summary’ screen will display a ‘Y’ in the Simple Assessment field, for any reconciled underpaid Simple Assessment years. The Simple Assessment field will be blank for any years which are not Simple Assessment.