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).