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HMRC internal manual

PAYE Manual

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HM Revenue & Customs
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Employer returns: record receipt of employer return: insolvency cases (Action Guide)

When you receive a return from the Insolvency Claims Handling Unit (ICHU) this will be identified by the word ‘Insolvency’ in green ink on top of the form, follow steps 1 - 9 below. This Guide is presented as follows

Step 1

Steps 2 - 5

Steps 6 - 9

Initial action

  1. Review the information received
  • Where the ICHU have obtained from the employer a form P35 and forms P14 go to step 2, or
  • Where the ICHU have supplied a P35 return similar to a Proforma POP return go to step 6

Processing normal returns

To process a form P35 insolvency return with forms P14 that includes a name, NINO or date of birth and gender

  1. Use Function RECORD RETURN RECEIPT to record the receipt of the return as a complete return, which has passed the paper quality check

Note: Quality standard checks do not apply to insolvency returns

In the Record Return Receipt screen enter the following

  • Receipt date as the date the Insolvency return was received. When a return is for a dissolved company the receipt date should be 19 May, or earlier, for the appropriate year
  • Employer reference
  • Submission type as ‘Complete Return’
  • Number of forms P14 as the number of forms P14 you have received with the return
  • Do not highlight either of the Return Status Indicator buttons

Note: The Return Status Indicator will automatically set to RSI1

  1. Request that the ECS Penalty Officer set the ‘Temporary Inhibition’ signal on ECS
  • Make a P35 note on the ECS Create Notes Screen of why the ‘Temporary Inhibition’ signal has been set
  1. Use Function CAPTURE EOY RETURN DETAILS to capture the return as either
  • Original Complete or Additional Complete
  • Capture the monetary fields that are completed on the Insolvency return
  1. Use Function AMEND EMPLOYER NOTES to record your actions and then file the P35 in the P35 run
  • On receipt of the form P228, link with the forms P14 and send to NIC&EO in accordance with PAYE41030

Processing pro forma employer returns

To process the pro forma ‘POP’ insolvency return returns

  1. Use Function RECORD RETURN RECEIPT to record the receipt of the return as a proforma complete return, which has passed the paper quality check

Note: Quality standard checks do not apply to insolvency returns

In the Record Return Receipt screen enter the following

  • Receipt date as the date the Insolvency return was received. When a return is for a dissolved company the receipt date should be 19 May, or earlier, for the appropriate year
  • Employer reference
  • Submission type as ‘Proforma Complete Return’
  • Number of forms P14 as ‘0’
  • Return Status Indicator as ‘RSI2’
  1. Request that the ECS Penalty Officer set the ‘Temporary Inhibition’ signal on ECS
  • Make a P35 note on the ECS Create Notes Screen of why the ‘Temporary Inhibition’ signal has been set
  1. Use Function CAPTURE EOY RETURN DETAILS to capture the return as either
  • Original Complete or Additional Complete
  • Ensure that you check the Proforma check box
  • Capture the monetary fields that are completed on the Insolvency return
  1. Use Function AMEND EMPLOYER NOTES to record your actions and then file the P35 in the P35 run
  • If you have received a P14 with the return, attach it to the P35 and file in the P35 run