PAYE41041 - Employer returns: record receipt of employer return: recording receipt of employer return (Action Guide)

To record the receipt of an employer annual return or return part, follow steps 1 - 27 below. The guide is presented as follows.

Note: This action must be taken on the day the return is received.

Steps 1 - 3

Initial action

Steps 4 - 8

Employer reference not found

Steps 9 - 12

EBS shows year not live

Steps 13 - 14

Employer record has moved

Steps 15 - 16

Return type does not match record

Steps 17 - 18

Cancelled one year only or Dormant

Steps 19 - 20

P35MT indicator (up to 2004)

Steps 21 - 22

Returns received for years CY-7 (2004-05 onwards)

Steps 23 - 25

Advisory messages

Step 26

P228/P239 number

Step 27

Capture return

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

Initial action

1. Ensure that the quality checks prior to recording receipt of the return or return part have been done to make sure you have a complete return and the front of the return has been date stamped. If not

  • See ‘Checks prior to recording receipt of a return (Action Guide menu)’ at PAYE40016

2. If you are recording receipt of a Nil return, follow ‘Nil returns - 2005 onwards (Action Guide)’ at PAYE43031

Otherwise go to step 3

3. Use Function RECORD RETURN RECEIPT to record the date the return was received, the return type, and the year

Note: For the purpose of this function for years up to 2004 there are 3 return types. For years 2005 to 2007 there are 8 return types, from 2008 there are six return types. You must ensure you select the correct one. For more information see ‘Recording receipt of employer return’ at PAYE41040.

  • If the employer reference can not be found go to step 4
  • If the year on the employer record to which the return relates is not live go to step 9
  • If the employer record has moved go to step 13
  • If the return type on the employer record does not match with the return type you have go to step 15
  • If the year has previously been cleared COYO and the (Cancelled one year only) indicator is set go to step 17
  • If the year has previously been cleared Dormant go to step 17
  • If the P35MT indicator is set go to step 19
  • If you receive a return for years CY-7 (2004-05 onwards) go to step 21
  • If you receive any advisory messages
    • Make a note of them, and then
    • Go to step 23
  • If none of the above apply and the receipt of the return or return part is successfully recorded go to step 26

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Employer reference not found

4. If the employer reference shown on the return can not be found on the Employer Business Service (EBS) record

  • Use NPS Function Quick Search or Trace and Match (Employer) to search for a valid employer reference
  • If a valid employer reference is found, go to step 5
  • If no valid employer reference is found, go to step 6

5. If a valid employer reference is found

  • Using green ink strike through the invalid employer reference on the return and enter the correct details
  • Date stamp any return, not already stamped, with the date it was received
    And on the next working day, when the record has been updated
  • Use Function RECORD RETURN RECEIPT to record the original date the return or return part was received, and then
  • Go to step 26

6. If you can not find a valid employer reference

  • Check whether the employer address is in the area for which your office is responsible

7. If the employer address is in your area

  • Use Function EMPLOYER SET UP to create a new record
  • Date stamp any return, not already stamped, with the date it was received

And then on the next working day, when the record has been updated

  • Use Function RECORD RETURN RECEIPT to record the original date the return or return part was received. When a return is for a dissolved company the receipt date should be 19 May, or earlier, for the appropriate year, and then
  • Go to step 23

8. If the employer address is not in your area

  • Date stamp the front of the return with the date of receipt, and
  • Send the return to the correct Processing Office asking them to set up a new record

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EBS shows year not live

9. If you have been unable to record receipt of a return or return part because the year on the EBS employer record is not live

  • Review the tax year on the return or return part and check that the correct year was entered when recording receipt of the return

10. If the correct year was not entered

  • Use Function RECORD RETURN RECEIPT again entering the correct year

11. If the correct year was entered

  • Review the information held and satisfy yourself that a live employer record is required for the year on the return

12. If a live employer record is required for the year on the return

  • Use Function AMEND EMPLOYER SCHEME HISTORY to update the employer record. To
    • Reopen a cancelled scheme - see ‘Re-opening an employer record’ at PAYE21205
    • Change a start date - see ‘Maintain scheme start date’ at PAYE27020
    • Remove the dormant indicator - see ‘Dormant employer records’ at PAYE21055
    • Restart a ceased scheme - see ‘Re-starting an employer record’ at PAYE21215

And on the next working day, when the record has been updated

  • Use Function RECORD RETURN RECEIPT again to record the date the return was received. When a return is for a dissolved company the receipt date should be 19 May, or earlier, for the appropriate year, and then
  • Go to step 26

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Employer record has moved

If you have been unable to record receipt of a return or return part because the employer record has been transferred, merged or succeeded

13. Use NPS Function Quick Search or Trace and Match (Employer) to search for the new employer reference and note this in green ink on the return or return part

14. If the new employer reference is in your office

  • Go to step 26, otherwise
  • Send the return or return part to the new office immediately

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Return type does not match record

15. If you are unable to record receipt of a return or return part because the type of return is incompatible with the scheme type on the employer record

  • Use Function VIEW EMPLOYER TRADE AND SCHEME DETAILS and the papers you hold to establish the correct scheme type
  • Use Function AMEND EMPLOYER TRADE & SCHEME DETAILS to correct the scheme type. For more information see ‘Maintain scheme type’ at PAYE27025

16. On the next working day, when the record has been updated

  • Use Function RECORD RETURN RECEIPT to record the date the return or return part was received. When a return is for a dissolved company the receipt date should be 19 May, or earlier, for the appropriate year, and then
  • Go to step 26

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Cancelled one year only or Dormant

17. If you are unable to record receipt of a return or return part because the year has previously been cleared Cancelled one year only or dormant

  • Use Function AMEND EMPLOYER INDICATORS to remove the COYO indicator, or
  • Use Function AMEND EMPLOYER SCHEME HISTORY to remove the Dormant indicator for the year of the return or return part held

18. On the next working day, when the record has been updated

  • Use Function RECORD RETURN RECEIPT to record the date the return or return part was received. When a return is for a dissolved company the receipt date should be 19 May, or earlier, for the appropriate year, and then
  • Go to step 26

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P35MT indicator (up to 2004)

If you are unable to record the receipt of a return or return part because the return type is incompatible with the Magnetic Media information on the employer record

19. Review the information you hold to establish the correct position and decide which of the following actions must be taken. For more information see section ‘Magnetic Media’ in this business area

  • If the employer intends to submit both forms P35MT and P35 use Function AMEND EMPLOYER INDICATORS to set the P35ALSO indicator
  • If it is confirmed that form P35MT is correct use Function AMEND EMPLOYER INDICATORS to set P35MT indicator
  • Return the second form P35MT to the employer and request completion of form P35 and forms P14 and use Function AMEND EMPLOYER INDICATORS to set the P35ALSO indicator

20. On the next working day, when the record has been updated

  • Use Function RECORD RETURN RECEIPT to record the date the return or return part was received. When a return is for a dissolved company the receipt date should be 19 May, or earlier, for the appropriate year, and then
  • Go to step 26

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Returns received for years CY-7 (2004-05 onwards)

Note: There have been no changes to any preliminary checks required prior to reaching the capturing stage, it is only the Record Return Receipt stage and sending any forms P14 for processing that have changed.

21. For complete paper submissions, paper P35 part only or paper P14 part only

  • Select Function RECORD RETURN RECEIPT in EBS
  • Select the ‘Earlier Years’ radio button and select the appropriate year from the options
  • Complete all fields in the usual manner, however, you must select the ‘RSI 2’ radio button in the Return Status Indicator field

22. For a P14 part only, you will have to input a Unique ID, as this data is not being carried forward anywhere, any reference can be used, for example, Part 1, IR01, 1, and so on

  • Capture the P35 figures in the usual manner
  • An automated P228 will not be produced for any forms P14 that require processing therefore it is necessary to complete a manual P228
  • As the P239 list number and Consec number will not be known, these fields should be left blank

Note: When completing a manual P228 to process paper forms P14, take care when completing the employers PAYE reference to ensure the alpha and numeric characters are noted clearly, for example, 2 and Z, 5 and S, O and 0, and so on.

Any forms P14 that have been sent for processing will be manually keyed onto NPS by staff within Central End of Year Processing

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Advisory messages

When using Function RECORD RETURN RECEIPT you may be presented with a message advising you of certain circumstances. When this happens you should

23. Make a note of the message on the return or return part

24. Continue to record receipt of the return or return part

25. Take any further action required as indicated in the message

Note: Any advisory messages must be reviewed, and where appropriate, action taken before the return or return part is captured.

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P228/P239 number

26. Make a note, on the front of the return, of the P228 consecutive number and the P239 list number as shown on the P228 P239 screen, and then

Go to step 27

Note: The P228 P239 screen will be automatically displayed for the following submission types

  • Complete return, where the number of forms P14 is greater than zero
  • Part P14
  • Proforma Complete return, where the number of forms P14 is greater than zero, or
  • Proforma Part P14

It will not be displayed for the following scheme types

  • ELECT
  • EXAM
  • XP, or
  • TAS

If the scheme type is not one of the above and the P228 P239 screen is not displayed you must ensure the correct scheme type is held on the employer record. For more information see ‘Maintain scheme type’ at PAYE27025

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Capture return

27. Once the receipt of the return or return part is successfully recorded, proceed to capture the return or return part details. Follow ‘Capturing return - 2005 onwards (Action Guide)’ at PAYE43012