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HMRC internal manual

PAYE Manual

From
HM Revenue & Customs
Updated
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Employer records: maintain employer record: machine listing (Action Guide)

If you are required to prepare a machine listing follow steps 1 - 13 below. The Guide is presented as follows

Step 1

Steps 2 - 4

Steps 5 - 8

Steps 9 - 13

For details of how to access any of the Employer Business Service functions, use PAYE057.

Initial action

  1. Before you begin to machine list take the following action
  • Make sure that the machine is cleared
  • Ensure all forms P14 are kept in the same order as the names listed on the return
  • Note the front of the return ‘Machined’ in green ink
  • Enter at the top of the machine list
    • The office number and employer reference
    • The reason for the machine listing

Machine listing from the forms P14 or NI only schedule

Your next action will depend on the type of machine listing you are required to do

  • If you have been asked to produce a total for tax deducted less tax refunded go to step 2
  • If you have been asked to produce a total for combined employees and employers Class 1 contributions payable by the employer go to step 4
  1. If you have been asked to produce a total for tax deducted less tax refunded use the following figures on the forms P14
  • In the box headed ‘This Employment’, or (if no figure held there)
  • The figure in the box headed ‘Total for the year’
  1. For each form P14
  • Add in a figure which does not have ‘R’ before it, and
  • Deduct a figure which has ‘R’ before it
  • Then go to step 5
  1. If you have been asked to produce a total for combined employees and employers Class 1 contributions payable by the employer use the following figures on the forms P14

For each form P14 or each name on the NI schedule

  • Add in the figure shown on each P14 in column 1e headed ‘Total of employee’s and employer’s contributions payable’ or against each name on the NI schedule

Action after machine listing

  1. Compare the machine list total with the corresponding entry on the return
  • If the figures agree use green ink to tick and initial the agreed total on the return or NI schedule. Go to step 13
  • If the figures do not agree go to step 6
  1. Compare the figures on the return, the machine list and forms P14 / NI schedule. Your next action depends on your findings
  • If the figures on the return agree the figures on the P14(s) / NI schedule but disagree the figures on the machine list, there has been an input error. Go to step 9
  • If the figures on the P14(s) / NI schedule agree the figures on the machine list but disagree the figures on the return go to step 7, or
  • You are unable to reach a conclusion without contacting the employer go to step 7
  1. Telephone the employer
  • Advise the employer what you have found and ask them to explain the discrepancy
  • If you are unable to contact the employer by telephone, write to the employer for the information
    • BF your papers for a reply
    • Use Function AMEND EMPLOYER INDICATORS to set the POST indicator on the employer record
  1. On receipt of a reply from the employer go to step 9, otherwise

If the employer has not replied at the BF review date

  • Use Function AMEND EMPLOYER INDICATORS to set the INSTIND(1) indicator for the year
  • Refer the case to the Debt Management Office to pursue
  • Keep the papers on BF for the Debt Management Office’s reply

Employer replies

Ensure that you have obtained all necessary information from the employer

Your next action will depend on what the employer has advised you

  • Where the employer advises you that the total on the return is correct, and supplies revised P14 / NI only schedule figures, which resolve the discrepancy, go to step 10
  • Where the employer advises you that they made an error on the return, and this resolves the discrepancy go to step 11
  • If you also need to amend any figures on the machine list go to step 9
  1. If there is a machine list error, on the machine list
  • Use green ink to note the amount needed to correct the incorrect figure beside the original figure (note + or - as appropriate)
  • Carry down the amount to the foot of the machine list
  • Add it to or deduct it from the original (or new) total. Note the new total below the previous total
  1. If the figures on the return are correct, on each relevant form(s) P14 or NI schedule
  • Use green ink to neatly strike through the incorrect figure(s) so that they can still be read
  • Enter the correct figure(s) above or beside them but in the same box
  • After making any necessary amendments to the machine list go to step 12
  1. If the figures on the return are incorrect, on the return, each relevant P14 or NI schedule
  • Use green ink to neatly strike through the incorrect figure(s), total(s) and subtotal(s) so that they can still be read
  • Enter the correct figure(s) and total(s) above or beside them
  • After making any necessary amendments to the machine list go to step 12
  1. Fill in the reconciliation slip to show the adjustment made to the provisional total(s)

Note: When you find that a figure for an employee making up the total on a machine list or form P35 has to be adjusted you will need to complete a reconciliation slip. The reconciliation slip will include

  • Original totals
  • Employee’s name
  • Adjustments needed to correct the form P35 or machine list
  1. Use Function CAPTURE EOY RETURN DETAILS to continue to capture the return