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HMRC internal manual

PAYE Manual

From
HM Revenue & Customs
Updated
, see all updates

Employer returns: electronic employer returns: issue e-file penalty screen

The issue E-File penalty screen will allow you to manually issue a penalty.

You can access the screen using the

  • [Issue] button within the E-File penalty details screen (PAYE44040)

Or

  • [Issue] button within the E-File exceptions list screen (PAYE44060)

Employer section

This is presented as follows

E-File segment

The E-File segment field displays

  • The segmentation band allocated to the employer at the time of the annual employee segmentation count

Or, where the employer successfully appeals against the band

  • The segmentation band determined for them as a result of the appeal

Scheme type

Where a tick is present in the Scheme type check box, ECS has been unable to automatically issue a penalty as the segmentation band provided by EBS conflicts with the scheme type held on ECS. For example EBS might provide ECS with a segmentation band of 1, 2 or 3 (indicating the scheme type to be ‘P’) whereas the scheme type on ECS indicates the band should be ‘Scheme type exempt’.

You will not be able to issue a penalty in these cases and you should

  • Report them by e-mail (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
  • Use the [No Further Action] button on the E-File exception list screen to remove the case from the penalty process

Trading name

Where a tick is present in the Trading Name check box, ECS has been unable to automatically issue a penalty as the employer’s EBS record includes a trading name.

Note: Penalty notices must be addressed to a named person where the employer is not a limited company. Partnership names and trading names held on employer records must have additional addressing information to ensure that they comply with legal requirements.

Where the Trading Name signal is set you can issue the penalty if you know the named person the penalty should go to. To do this

  • Enter the addressee details in the name to be addressed to field

And

  • Select the [Issue] button

Seg. appeal

Where a tick is present in the Seg. appeal check box you will be prevented from issuing a penalty as there is an open appeal (on EBS) against the segmentation band / count allocated to the employer during the annual employee segmentation count.

Details of the appeal can be viewed in

  • The segmentation details screen in ECS

Or

  • EBS Function VIEW EMPLOYER SEGMENTATION

EBS will inform ECS once the appeal is settled and where the outcome of the appeal is that the employer

  • Should have submitted their return online, ECS will automatically issue the penalty concerned
  • Should not have submitted their return online, ECS will not issue a penalty and the employer will be removed from the penalty process for the year concerned

RLS

Where a tick is present in the RLS check box (where undelivered mail is returned by the Post Office), you will be prevented from issuing a penalty, as the last known address for the employer is RLS.

Where the signal is set you must

  • Ensure that the RLS signal is still valid and that appropriate tracing action is taken

If as a result of the tracing action taken

  • A new address is found (and the RLS signal is removed) ECS will charge appropriate penalties and no longer include the case on the exceptions list
  • The scheme is cancelled, ECS will no longer include the case on the exceptions list

If tracing action fails to obtain a new address consider using the [No Further Action] button (PAYE44060).

The employer’s record and file must be noted so that if a new address becomes available any penalty can be issued.

Inhibition

Where a tick is present in the Inhibition check box, ECS has been unable to automatically issue a penalty as the E-File penalty temporary inhibition signal is set.

Where the signal is set for the year and you want to issue a penalty you should

  • Cancel the signal using the E-File penalty details screen

And

  • Re-enter the Issue E-File penalty screen to issue the penalty

Name to be addressed to

The name to be addressed to field allows you to enter a name to be included in the addressing information on the penalty notice.

Note: Penalty notices must be addressed to a named person where the employer is not a limited company. Partnership names and trading names held on employer records must have additional addressing information to ensure that they comply with legal requirements.

Number of employees / No of P14s field

The Issue E-File penalty screen will display a ‘Number of Employees’ field in respect of year 2004-05 and a ‘No of P14s’ field in respect of year 2005-06 onwards. The fields will display the following

  • For year 2004-05, the Number of Employees Field will display the number of employees at the time of the 2004-05 annual employee segmentation count
  • For years 2005-06 onwards, the No of P14s field will display the number of forms P14 submitted with the employer’s main return

Penalty amount

The Penalty amount field displays the amount of the employer’s E-File penalty. The amount of the penalty is based on the number of forms P14 recorded in the Number of employees / No of P14s field referred to above.