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HMRC internal manual

PAYE Manual

Employer records: maintain employer record: EOY return and forms P14 - reviewing CY-1 errors

An employer-related file ‘Employers making mistakes on EOY returns’ should be held in the PAYE Employer Office to record all instances where you identify an error on the employer annual return, or forms P14 submitted by the employer for the previous tax year.

The following details should be recorded on the file

  • Employer ref
  • Failure reason
  • Size of employer S / M / L

    • S - less than 10 employees
    • M - 10 - 1,000 employees
    • L - more than 1,000 employees
  • Returned to employer Y / N
  • Action on review (to be filled in when estab file is reviewed)

Note: From June 2006 most of the current information contained in the establishment files should be transferred to electronic storage as part of the Better Management of Electronic Information (BMoEI) initiative.

To ensure the employer is aware of the mistakes made on the submitted forms P14 and to avoid similar mistakes arising in the future, a review of the employer-related electronic file must be made each year before the 28 March.

A current version of the Letter re P14 Errors CY-1 (Word 27KB) should be issued to each employer on the list, providing them with the following

  • Details of the errors made on last years return / forms P14
  • Advice on the correct procedures for the completion and submission of the return for the coming year end as detailed in the Employer Help Book E10 ‘Finishing the tax year up to 5 April’

When the review is completed a new stencil ‘Errors Found on EOY Returns’ should be prepared for the coming tax year end.

Misaligned forms P14

If an employer contacts you with any queries about misalignment and you are in any doubt, ask the employer to send a sample of their forms P14. On receipt, fax the samples to NICO (This content has been withheld because of exemptions in the Freedom of Information Act 2000) to confirm whether the forms are acceptable.

Cases taken up by PAYE sections

It is possible that the PAYE section may take up an enquiry with an employer over the completion of forms P14.

When reviewing the employer-related electronic file if you do come across an open enquiry for the same employer you should not deal with the query yourself. You should refer the case back to the PAYE section to take up both points at the same time. The PAYE section should update the employer-related electronic file accordingly once both points have been settled or the case has been referred for further action by another section, for example, Employer Compliance or the Debt Management Office.