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HMRC internal manual

Compliance Operational Guidance

Supporting Guidance: employer compliance: guidance by subject: open year inaccuracies: how to make an open year adjustment

Note: These instructions only apply

  • for employers for the period up to 5 April 2013 - see COG906525 for returns due after 6 April 2013
  • for contractors for the period up to 5 April 2007 - see COG910150 for returns due after 6 April 2007.

Where an open year pay record has been understated the employer should amend the related computer record or DWS

  • at the last payment date for the current year when a payment has been made
  • at the final payment date for other open years.

You should advise the employer to

  • lightly strike through the entry of ‘total payments’, and any incorrect entries in respect of NIC, Statutory Payments (but so they can still be read)
  • amend the gross pay figure to include the omitted pay
  • compute the revised cumulative tax due and enter this above the figure recorded in the ‘total tax due to date’ columns
  • correct any wrong entries in respect of NIC and Statutory Payments
  • pay over any additional monies with the next monthly remittance
  • if appropriate refer the employer to the paragraph relating to ‘mistakes and how to correct them’ in the

    • Employers Further Guide to PAYE/NIC (CWG2)
    • Statutory Payments leaflets (E14 - E16).