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HMRC internal manual

PAYE Manual

Employer records: maintain employer record: RLS correspondence

This subject consists of the following

Correspondence returned RLS to Banking Operations

Items of post sent to an employer or contractor which cannot be delivered are returned by the Post Office to Banking Operations. The Banking Operations Tracing Unit will

  • Check the computer records

And if necessary

  • Set the RLS indicator (signal) on the BROCS record
  • Attempt to trace a later address

When Banking Operations set the RLS indicator this information will then flow to the PAYE Service to update that employer’s details and then onto the employer record. You will also be advised of this position by an entry being generated on the ‘All Addresses RLS’ or ‘Employer Business Address’ RLS work lists

Correspondence returned RLS to other offices

Banking Operations Cumbernauld will normally direct returned correspondence that has their return address, to the issuing office. That office must

  • Carry out initial checks of the computer record and other sources to see if a later address is held

And if necessary

  • Use Function AMEND EMPLOYER SUMMARY to set the RLS indicator against the relevant address on the employer record

If RLS correspondence is returned to you follow the instructions in ‘RLS correspondence (Action Guide)’ at PAYE21221.

EBS work lists

Banking Operations will update the BROCS record which will flow through to EBS to advise you that the employer correspondence address is RLS based on information they have received. Notification of this information reaching the PAYE Service will generate an entry on the Employer Business Address RLS work list

The EBS ‘All Addresses RLS’ work list will include details of all employer records where there is no address available to issue communications to.

Further information is available in subject ‘All addresses RLS’ at PAYE31050.

DLO addresses

You should note that the address held on the employer record on EBS may be shown as DLO. This indicator is only displayed on EBS when an address has been automatically updated. You cannot set this indicator yourself.

Note: As the DLO indicator is only held on EBS, RLS will be displayed on other computers for both RLS and DLO addresses.

If an employer record held an address that was DLO which was subsequently updated with a new address, although the DLO indicator would be automatically removed, the RLS indicator on the PAYE Service and BROCS would remain.

You must therefore when changing addresses on EBS

  • Review the PAYE Service to see whether the RLS signal is held on the PAYE Service against the corresponding address

Where it is present you must

  • Use Function AMEND EMPLOYER SUMMARY to set the RLS indicator against that address on EBS

And on the same day

  • Use Function AMEND EMPLOYER SUMMARY again to remove the RLS indicator

Amending an address or RLS indicator

If you amend an address, or set / cancel the RLS indicator, you must ensure that you amend the correct address and that any changes you do make are reflected on other computers. For example, the business address may be RLS but the correspondence address or payroll agent’s address may still be up to date. You must ensure the indicator is linked to the correct address and that all other computers (PAYE Service and BROCS) are in line. Further information is available in subject ‘Maintain employer address’ at PAYE21160.

Where the employer record is scheme PSC or XP, you must take the following action to avoid incorrect CIS penalties from being raised

  • Prior to removing the RLS indicator, send an eForm to the CIS Centre, Newry, flagged ‘Immediate - Scheme changes RLS signal being removed’
  • If the RLS signal is to be removed as a result of communication with the customer / agent, the EBS notes should include details of contractor activity during the period. If not known, you must put ‘not known’ to avoid unnecessary contact by Newry
  • Wait for a response from Newry before taking any action on the EBS record. You will usually get a response within 24 hours
  • On receipt of the eForm reply from Newry, you may continue to deal with the EBS update as usual and update the address or remove the RLS signal as appropriate

Payroll & correspondence address

An employer or contractor may decide to appoint another person or body to operate PAYE on their behalf. They may also request all payroll correspondence to be issued to an alternative address.

Details of that person or body should be held on the employer record. This will ensure that all correspondence normally sent to the employer is now issued direct to the person or address nominated by the employer.

Starter packs returned RLS

When starter packs are returned to HMRC Cumbernauld they will send them to the PAYE Employer Office to establish a new address and reissue the starter pack. The PAYE Employer Office must

  • Confirm the correct business addresses for the employer or contractor and also establish if there is a separate payroll and correspondence address
  • Establish from the scheme type whether the Helpline issue the starter pack or if it is your responsibility. For more information see subject ‘Setting up new employer records’ at PAYE20170 
  • Send a fax to the Helpline with the new correspondence address and a request for a duplicate starter pack

    • If you were responsible for issuing the original starter pack you must issue a duplicate to the new correspondence address

Information regarding specific scheme types and starter packs can be found at PAYE20080 onwards.