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HMRC internal manual

PAYE Manual

Employer returns: capture employer return - up to 2004: capture correction returns - up to 2004 (Action Guide)

Note: This Action Guide should be used for tax years up to 2003-04 only.

When you are required to capture a correction return, follow steps 1 - 6 below. This Guide is presented as follows

Note: The definition of a correction return has changed for tax years 2004-05 onwards. Ensure you are using the appropriate definition for the return you are capturing.

Step 1

Step 2

Steps 3 - 4

Steps 5 - 6

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

Initial action

Review any correction return received after an Original Complete return has been captured

  1. Use Function VIEW EOY RETURNS HISTORY to check whether an Original Complete return has already been captured
  • If a return has already been captured for that year go to step 2, otherwise
  • Follow PAYE42012

Additional Complete returns

  1. Use Function VIEW EMPLOYER INDICATORS to identify whether the employer or contractor is expected to submit an Additional Complete return
  • If indicator P35MT or P35ALSO (both for years up to 2004)are set, go to PAYE42015, otherwise
  • Go to step 3

Correction returns

  1. Where the employer appears not to have taken reasonable care in submitting the Original Complete return
  • Pass both the original and any later returns to the nominated penalty officer for consideration, otherwise
  • Go to step 4

Note: When the employer submits more than one return for a PAYE scheme each year you must contact the employer to draw their attention to the correct legal position for making end of year returns.

  1. Correction returns must show the figures to be put right and by how much. For example
  • Understated pay of £500 should be declared as ‘+£500’ for the relevant box on the P14
  • The same figures must be declared on the P35

When the employer submits a return that includes the original figures and the correction figures as detailed above this is a replacement return

Replacement returns

  1. When the employer submits a correction return go to step 6, otherwise

When the employer submits a replacement return

  • Send the replacement return back to the employer
  • Ask them to submit a correction return in the correct format
  • BF the papers for two weeks
  1. On receipt of a correction return in the correct format
  • Use Function CAPTURE EOY RETURN DETAILS to capture the information