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HMRC internal manual

PAYE Manual

Employer returns: employer return exceptions: introduction

Each employer and contractor must submit an annual return to HMRC. The return is a summary of

  • Tax and National Insurance deductions made from employees and subcontractors
  • Total payments of tax credits made to certain employees
  • Student Loan deductions made from employees who are Student Loan borrowers

There are different types of returns and some employers may submit more than one return of the same or different type in any tax year. This section provides information and guidance when a return or return part require further action.

Employer returns - up to 2004

When dealing with employer return exceptions for tax years up to 2003-04 follow ‘Captured returns - exceptions- up to 2004 (Action Guide)’ at PAYE46011.

Advisory messages

Some returns are received and processed successfully however if further action is required in the Processing Office these will be notified by work items on the appropriate work lists.

Record and capture failures

Some returns are not processed and information is not passed to EBS and other systems. This may be due to a failure because of one or more of the following errors either when the return was being recorded as received or captured

  • Incorrect reference
  • Signals set for wrong type of return
  • Wrong type of return received

Return part failures

When return parts are recorded and / or captured the details are held in ChRIS until all the expected parts are received. Exception reports are issued for the following

  • Reconciliation errors, where the figures on the P35 do not match the other parts
  • Consolidation errors, where at least one return part is held for more than 30 days