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HMRC internal manual

Debt Management and Banking Manual

From
HM Revenue & Customs
Updated
, see all updates

Debt and return pursuit: PAYE: introduction to PAYE: annual returns: part returns

If the employer submits their return in parts (that is P35 and P14s separate, or P35 and some P14s followed by a further P14 submission), each part will be subject to QS1 and QS2 with any failing (except for paper submissions failing QS2) being returned to the employer or submitter.

Those parts that pass QS2 but fail QS3 will be passed to CEPT for investigation. When the remainder of the return is received and processed, ChRIS will apply QS3 checks for the whole return and any failures will send the P35 back to the submitter for correction. The P14s will be retained.

When a return part has been outstanding for more than 30 days, a work item will be created for the Central Exception Processing Team (CEPT) action.

CEPT will either obtain the outstanding part or move the return parts out of ChRIS, obtain a print of what the employer sent and decide what action is needed for the return to be processed correctly.

When all errors have been corrected, CEPT will capture the return on EBS as a paper return but the E-FILED signal will be set on EBS to show that the return was originally filed online.

This ensures that any tax-free payment is awarded to small employers, and that medium and large employers are not incorrectly charged a non-online filing penalty.

P35 submission (online or paper) with some or no P14s

Once a paper P35 is captured on EBS, or an online P35 only (or with part of the P14s) submission is processed by ChRIS:

  • the P35 is treated as an advance (unconfirmed) copy
  • the Tax/NIC figures are sent to BROCS appearing as 228 figures.

The 228 figure can be viewed using BROCS function VIEW TAXPAYER DATA (format 3) POSTINGS SUMMARY (VTP-PS-ASN/ year specified). IDMS in-year and/or return work items are cancelled at this stage and replaced with an overpayment/underpayment or return work item as appropriate.

P14s only submitted (no P35)

When paper or online P14s are received and there’s no P35 to link to, these will be held in ChRIS for 30 days. If after 30 days there is still no P35 submitted CEPT will receive an exception work item to pursue the P35.

There is no signal on either BROCS or IDMS to show that the P14s have been received. If confirmation is needed then you would have to check the tracking tool to see what had been received.

CEPT will generally start their pursuit work before DMB start their return campaign so there should not be any occasions when their work overlaps with DMB’s.