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HMRC internal manual

PAYE Manual

From
HM Revenue & Customs
Updated
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Employer returns: ECS additional processing action: P11D(b) screen - setting and updating the class 1A signal

This one character field (checkbox) is used to update the Class 1A signal for the selected employer and year.

The checkbox will automatically display a tick (indicator) if

  • A P11D(b) return has already been captured with an amount for the selected employer and year

Or

  • A P11D(b) return is expected for the selected employer and year

The signal can be manually updated to take into account information received that changes an employer’s liability to Class 1A NIC for the year. These could include, for example, information received direct from the employer or where the Employer Compliance Officer has obtained information. To do this

  • Select the checkbox to display the indicator to show that the employer is liable to Class 1A on benefits and that a form P11D(b) is expected

Or

  • Select the checkbox to remove the indicator to show that the employer is not liable to Class 1A and no P11D(b) is expected

Note: You will not be able to remove the indicator where a P11D(b) return has already been captured for the selected employer and year.

Where a form P35 is received online and in the ‘Declaration and certificate’ section the answer to the question ‘Completed forms P11D and P11D(b) Returns of expenses payments, benefits and Class 1A contributions are not due’, this information will be automatically captured on EBS and sent overnight to ECS.

Where a paper P35 is received from an employer that is excluded from filing their P35 online, the above information will be captured clerically onto EBS and will then be sent overnight to ECS.

Where the Class 1A signal is already set on ECS, the above actions will automatically un-set the signal.

The signal is year-related and can be amended for each tax year separately.

Note: Setting the signal after the annual selection process will result in the automatic issue of form P11D(b) and a payslip by BROCS in the next weekly issue. The employer will then be included in the automatic penalty process.

Add Class 1A amount payable

In cases where only the date of receipt of the form P11D(b) has previously been captured, the amount payable shown on the P11D(b) return in box C can be captured using the Update P11D(b) screen.

To do so

  • Highlight the received date on the P11D(b) screen
  • Select the [Update] button. You will be taken to the Update P11D(b) screen
  • Enter the amount payable from box C on the form P11D(b), where an entry exists

Or

  • Select the [Nil Class 1A Return] box, where this is shown in Section 2 of the form P11D(b), to set the indicator
  • Select the [OK] button