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HMRC internal manual

PAYE Manual

From
HM Revenue & Customs
Updated
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Employer returns: record receipt of employer return: introduction

Each employer and contractor must submit an annual return to HMRC. The return is a summary of

  • Tax and National Insurance deductions made from employees and subcontractors
  • Total payments of tax credits made to certain employees
  • Student Loan deductions made from employees who are student borrowers

The return and relevant enclosures must be submitted on an official employer annual return to a Processing Office by the due date following the end of each tax year. No substitute forms will be accepted. That date is 19 May. If the return is not received by that date penalties under S98A(2) TMA 1970 will automatically accrue.

Cessation returns

Returns that are required at other times, for example for a period to the date of cessation will normally be sent to the local Debt Management Office who will apply the paper quality standard checks to the returns and either accept and record receipt of the return or return it to the submitter with a failure letter.

The return will then be sent to the Processing Office at 6 April to forward the forms P14 to NIC&EO and capture the return.

There are different types of return and some employers may submit more than one return of the same or different type in any year.

There is no facility to record receipt of additional returns in Function RECORD RETURN RECEIPT. For more information about additional returns see ‘Capture employer return - 2005 onwards’ PAYE43000 onwards.

From April 2005 returns for year 2004-05 can be submitted in parts when they are filed online or use Magnetic Media. If an employer intends to send the whole return by paper, then the return must be submitted as a complete return and not in parts.

P35 with CIS Deductions Suffered only

If you receive a return with only an entry for ‘CIS Deductions Suffered’, before processing the return you will first need to establish that the employer is not due to be submit another return for other liabilities, for example, Tax, NIC, Statutory payments.

You can do this by checking EBS Function VIEW EOY RETURN HISTORY to establish what returns were submitted in the previous year.

Where you ascertain that the ‘CIS Deductions Suffered’ return is the only return due you can process the return.

To do this you must

  • Use EBS Function RECORD RETURN RECEIPT to record the receipt of the return, and also select the ‘RSI2’ radio button
  • Use EBS Function CAPTURE EOY RETURN DETAILS to capture the return

If, however, you establish that another return is due you must not process the ‘CIS Deductions Suffered’ return until the main P35 return has been processed and consolidated at RSI2 / 3.

If an employer contacts you requesting a repayment for a return with ‘CIS Deductions Suffered’ only on it, you can process the return to deal with the repayment, providing you can confirm with the employer that no other return is due.

Note: The reason for following this process is if the ‘CIS Deductions Suffered’ only return has been processed as an original return at RSI2 the data will not have passed to ChRIS. If you subsequently receive and process a return with Tax / NIC entries, EBS will treat the return as an additional, which will be rejected by ChRIS as it will not have received an original.

Only where the employer claims they will suffer genuine hardship as a result of waiting for their repayment can you consider a provisional repayment in accordance with PAYE47106.

Responsibilities

On the date of receipt the Processing Office must 

  • Date stamp the returns that are received
  • Forward any return received remotely to the correct Responsible Organisation Unit (ROU) for them to record the receipt
  • Make the paper quality standard checks to ensure that the return or return part received is completed correctly. For further information see ‘Employer return - quality checks’ PAYE40000 onwards
  • If a change of address is noted on the front of the return use Function AMEND EMPLOYER SUMMARY to change the address
  • Deal with any payments sent in with the returns
  • Record the date of receipt of all parts of employer returns, which pass the quality standard checks, on the Employer Business Service (EBS) computer (except in-year returns that must be referred to the Debt Management Office)

How to record receipt of an employer return

To be able to record receipt of a return or return part the operator must be allocated the EBS Employer Maintainer or EBS Receivables user role. Returns and return parts are recorded as received using Function RECORD RETURN RECEIPT.

Viewing details of returns received and receipted

After recording receipt of each return the following details can be viewed using Function VIEW EOY RETURNS HISTORY. Some details are not held for years up to 2003-04 and will not be displayed

  • The year of the return
  • Scheme Type
  • Status of the return
  • Number of returns held
  • Whether return was Filed Online

Return Receipt Details show the details of each part of the return

  • The submission type
  • The media used to submit the return
  • The date of receipt
  • Return class
  • Version number of the receipt recorded (1 to 99)
  • The Return Status Indicator (RSI) (1, 2 or 3)
  • Number of P14s received
  • Number of parts received
  • The organisation unit of the office where the return was recorded as received except 

    • Returns filed by PAYE Online for Employers - Internet or EDI
    • Returns recorded as received prior to 6 April 2002

The EBS user roles EBS Employer Maintainer and EBS Employer View will allow operators access to this function.

You must only view an employer record if there is a business need to do so.

Amending or deleting recorded return details

In day to day working errors may be discovered in the recorded as received return details. For example

  • The date of receipt may have been recorded incorrectly
  • The tax year or return type may not be correct
  • The media type may have been recorded incorrectly

These details can be amended or deleted by using Function AMEND / DELETE EOY RETURNS RECEIPT. The operator must be allocated the EBS Employer Maintainer or EBS Receivables user role to use this function.

Layout of this section

Actions that are specific to recording the receipt of a scheme or return type will be included under the appropriate scheme or return type heading. Information about the forms can be found in ‘Employer return forms’ PAYE52000 onwards.

Data Protection Act

The provisions of the Data Protection Act 1998 (DPA) apply to employer records in the same way as they apply to taxpayer records on other HMRC computers.