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HMRC internal manual

PAYE Manual

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HM Revenue & Customs
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Employer returns: employer return - quality checks: form P14 only - 2005 onwards (Action Guide)

Note: This subject provides details of how to record receipt of employer returns for tax years from 2004-05 onwards.

To carry out the checks required prior to recording receipt of a form P14 only for years 2005 onwards, follow steps 1 - 11 below. The guide is presented as follows.

These checks must be made on the day the return is received.

Step 1

Steps 2 - 4

Steps 5 - 6

Steps 7 - 11

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

Note: The machines used to scan forms P14 can only read details on approved forms and photocopies are not acceptable.

Year of return

  1. Identify the year shown on the return
  • If the return is for the current tax year (CY) and today’s date is before 24 March of that tax year, send the return and enclosures to the Debt Management Office
  • If the return is for the current tax year (CY) and today’s date is on or after 24 March go to step 2
  • If the return is for a year CY-1 or earlier
    • For returns for years up to 2003-04 follow ‘Form P14 only - up to 2004 (Action Guide)’ at PAYE40018
    • For returns for years 2005 onwards - go to step 2

Initial action

  1. Use Function VIEW EMPLOYER TRADE & SCHEME DETAILS to identify the scheme type
  • If it is this one of the following - go to step 5
    • DCNI - Direct Collection (Employee only NIC)
    • DPGEN - Direct Payment
    • DPNI - Direct Payment (NI Only)
  • If the forms P14 are attached to a P14 cover sheet and the scheme is one of the following - go to step 5
    • P - PAYE
    • PSC - PAYE and Sub Contractor
  • Otherwise go to step 3
  1. Note the correct scheme type

  2. Review other papers in your office to see whether the form P14 has become detached from another return or P14 cover sheet

  • If it has become detached from a return, attach it and follow ’Form P35 and forms P14 - 2005 onwards (Action Guide)’ at PAYE40029
  • If it has become detached from the P14 cover sheet. Attach it and go to step 5
  • If it has not - go to step 7

Review form P14

  1. Review the forms P14 fully for any of the following quality standard failures

Note: You must apply the quality check against all paper forms P14.

Returns may be regarded as incomplete / incorrect where any of the following apply

  • The forms P14 submitted are not the correct version for that tax year
  • Substitute forms are unapproved versions
  • Forms are unreadable for any of the following reasons
    • Faint print
    • Misaligned boxes
    • Carbon smudges
    • Small font size
    • Hole punches
    • Defaced form
  • Forms P14 are not acceptable for any of the following reasons
    • NINO missing. (If NINO missing date of birth and gender must be given. Temporary NINOs are not acceptable)
    • Employee’s names missing
    • NIC boxes not completed (where appropriate)
    • Use of sticky labels or correcting fluid
    • Forms P14 not split
    • Forms P14 glued or stapled together
    • Forms P14 not de-sprocketed
  • If no errors are found, go to step 6
  • If forms P14 are incomplete / incorrect, go to step 7
  1. If no errors are found your next action will depend on whether the forms P14 have a P14 coversheet

If they do

  • Date stamp the P14 cover sheet with the date it was received
  • Check that the employer has entered a unique identifier on the P14 cover sheet, if not contact the employer to obtain a unique identifier, and
  • Record receipt of the return. Follow ‘Recording receipt of employer return (Action Guide)’ at PAYE41041

If they do not

  • If the forms P14 relate to scheme types DCNI, DPGEN or DPNI
    • Date stamp the P14 with the date it was received
    • Prepare a proforma P35 using the P14 details, and
    • Record receipt of the return. Follow ‘Recording receipt of employer return (Action Guide)’ at PAYE41041
  • Otherwise
    • Returns may be regarded as incomplete / incorrect, go to step 7

Form P14 incomplete / incorrect

  1. Review the errors found on the return and decide whether

Note: When the return is received it must pass the quality standard checks. The return or return part may include the details required to quickly correct the error. Any errors, which can be easily repaired, can be corrected using green ink. Any returns which are incomplete or illegible must be returned to the submitter.

  • You can easily repair these in the office. For more information see ‘Correction of failed return’ at PAYE40035. If so go to step 8, or
  • If not go to step 11
  1. To repair the form P14, either
  • Strike through the illegible entry on the form P14 and enter the correct information clearly

Note: You must use green ink for this purpose.

Or

  • Prepare a new form P14 to record the correct information

Note: This must be noted ‘Pro-Forma’ and completed in green ink.

  1. Make an entry in the employer-related electronic file ‘Employers making mistakes on EOY Returns’

  2. Receipt of the return can now be recorded

  • Date stamp any return, not already stamped, with the date it was received, and
  • Record receipt of the return. Follow ‘Recording receipt of employer return (Action Guide)’ at PAYE41041
  1. Use Function RECORD RETURN RECEIPT to record the failure reason
  • Use SEES in Microsoft Word to generate a failure letter
  • Send the return back to the employer with the failure letter
  • Make an entry in the employer-related electronic file ‘Employers making mistakes on EOY Returns’