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HMRC internal manual

PAYE Manual

HM Revenue & Customs
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Employer returns: employer return post capture: NICO invoices - up to 2004

Note: This subject provides details of how to handle NICO Invoices for tax years up to 2003-04

This subject is presented as follows



NICO Magnetic Media Section will forward an invoice(s) to the Processing Office for returns submitted by

  • Magnetic Media
  • Electronic Data Interchange (EDI)

The invoice will usually be sent to the Processing Office by NICO at the same time as the P14 microfiche.

Every such employer for which you are the responsible Processing Office must be recorded on the ‘Reporting End of Tax Year Data Electronically’ list which is held within the ‘Electronic P14 Register’ employer related electronic file.

Magnetic Media

Prior to April 2002 the Processing Office was required to await the MT invoice before it was able to capture the return onto the Employer Business Service (EBS).

Since April 2002 this requirement no longer applies. A return may now be captured using the details shown on form P35MT. From April 2004 the P35MT will be withdrawn. Instead there will be only one version of the P35 which must be used by all employers who wish to make their P35 return on paper.

A review of the list ‘Reporting End of Tax Year Data Electronically’ held within employer related electronic file ‘Electronic P14 Register’ will be made annually during the first week in October to ensure that all invoices have been received.


Forms submitted by EDI do not have to be filed as a package and the employer may choose which forms they wish to submit by this method. An employer may, for example, choose to forward forms P14 by EDI and complete a P35MT separately for the same employer record.

NICO will

  • Produce a microfiche of forms P14
  • Provide an invoice for the responsible office for all forms P14 sent by EDI whether or not the form P35 is submitted by EDI as well

Any P35 return submitted by EDI should be processed automatically onto EBS. You must

  • Compare the figures on the invoice(s) with the figures on the return, and take any remedial action to resolve any discrepancy
  • Manually process returns that appear on exception lists or are notified by Electronic Business Unit by stencil

PAYE Online for Employers (Internet)

Unlike those forwarded by EDI, forms submitted by PAYE Online for Employers (formerly known as FBI) must be filed as a package. The system automatically validates the information on the form P35 and forms P14. As a result an invoice will not be generated for any PAYE Online for Employers (Internet) submissions, although a microfiche is produced.