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HMRC internal manual

PAYE Manual

From
HM Revenue & Customs
Updated
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Employer returns: employer return post capture: NICO invoices - up to 2004 (Action Guide)

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

To review an invoice, follow steps 1 - 27 below. The Guide is presented as follows

Step 1

Steps 2 - 5

Steps 6 - 9

Steps 10 - 27

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

Initial action

  1. Use Function VIEW EOY RETURNS HISTORY to establish whether the return has been recorded as received and / or captured
  • If the return has not been recorded as received or captured go to step 2
  • If the return has been recorded as received but not captured go to step 6
  • If the return has been recorded as received and captured go to step 10

Not recorded as received or captured

  1. Use Function VIEW EMPLOYER INDICATORS to establish which electronic method is used to submit the return
  • If the invoice relates to an MT submitted return go to step 3
  • If the EDI ‘Intent to file’ indicator is present go to step 4

3.Review other papers in your office to see if you can locate the return

  • If you are able to locate the return link it to the invoice and continue with recording the receipt of the return following the guidance in ‘Record receipt of employer return’ at PAYE41000 onwards
  • If you are unable to locate the return contact the employer
    • Ask them to forward a completed return (or duplicate as applicable)
  • On receipt of the completed return link it to the invoice and continue with recording the receipt of the return following the guidance in ‘Record receipt of employer return’ at PAYE41000 onwards
    • Note the employer related electronic file ‘Electronic P14 Register’
  1. If an EDI return has been rejected the employer record will appear on the ‘Filed Online Return Exceptions’ work list
  • Use Function WORKLISTS to view the employer record on the exception list
    • Use the guidance provided in the relevant subject in ‘Employer returns work lists’ at PAYE53000 onwards, otherwise
  1. Review other papers in your office
  • If you locate the return and the employer has not filed by EDI
    • Continue with recording the receipt of the return following the guidance in ‘Record receipt of employer return’ at PAYE41000 onwards
    • If the EDI indicator needs to be removed you must contact the Online Customer Services Team
    • Note: Due to the volume of references involved, you must not telephone the team. When it is necessary to enquire about setting or removing indicators, you must issue an email (This content has been withheld because of exemptions in the Freedom of Information Act 2000) , requesting any information or attaching a list or spreadsheet of Employer Names and References affected when online filing signals are to be reset.
  • If you are unable to locate the return contact the employer
    • Ask the employer to forward a completed return (or duplicate as applicable)
    • On receipt of the completed return link it to the invoice and continue with recording the receipt of the return following the guidance in ‘Record receipt of employer return’ at PAYE41000 onwards
    • Note the employer related electronic file ‘Electronic P14 Register’

Recorded as received but not captured

  1. Use Function VIEW EMPLOYER INDICATORS to establish which electronic method is used to submit the return
  • If the invoice relates to an MT submitted return go to step 7
  • If the EDI ‘Intent to file’ indicator is present go to step 8
  1. Review other papers in your office to see if you can locate the return
  • If you are able to locate the return link it to the invoice and follow the guidance in ‘Record receipt of employer return’ at PAYE41000 onwards
  • If you are unable to locate the return
    • Ensure that you are still the responsible Processing Office, and if you are not, forward the invoice to the new office immediately
    • If you are the responsible Processing Office continue to check for the return. If you are unable to locate it, contact the employer to request a duplicate return then follow the guidance in ‘Record receipt of employer return’ at PAYE41000 onwards
  1. Use Function WORKLISTS to establish if the employer record appears on the ‘Filed Online Capture Exceptions’ work list
  • If the employer record appears use Function WORKLISTS to view the employer record on the exception list
  • Use the guidance provided in the relevant subject in ‘Employer return work lists’ at PAYE53000 onwards, otherwise
  1. Review other papers in your office
  • If you locate the return the employer has not filed by EDI
    • If the indicators need to be removed you must contact the Online Customer Services Team
    • Note: Due to the volume of references involved, you must not telephone the team. When it is necessary to enquire about setting or removing indicators, you must issue an email (This content has been withheld because of exemptions in the Freedom of Information Act 2000) , requesting any information or attaching a list or spreadsheet of Employer Names and References affected when online filing signals are to be reset.
    • Continue with the capture process following the guidance in section ‘Record receipt of employer return’ at PAYE41000 onwards
    • Note the employer related electronic file ‘Electronic P14 Register’
  • If you are unable to locate the return contact the employer
    • Ask the employer to forward a completed return (or duplicate as applicable)
    • On receipt of the completed return link it to the invoice and then continue with the capture process following the guidance in ‘Record receipt of employer return’ at PAYE41000 onwards
    • Note the employer related electronic file ‘Electronic P14 Register’

Recorded as received and captured

  1. Use Function VIEW EOY RETURNS HISTORY to establish which electronic method is used to submit the return
  • If the invoice relates to an MT submitted return, or
  • If the ‘Original P35 EDI’ indicator is present (indicating that the invoice relates to an EDI employer)
    • Go to step 11
  1. Retrieve the ‘Electronic P14 Register’ employer related electronic file
  • Find the relevant employer on the ‘Reporting End Of Tax Year Data Electronically’ list held within the employer related electronic file
  • Check the permit number shown on the invoice and tick this number. The permit numbers are listed in the column headed ‘Permit No Last 6 Digits’
  1. Check the list to confirm that all expected invoices have been received
  • If you have not received all the invoices put the return on one side until they are all held
  • When you have received all of the invoices go to step 13
  1. Add all of the invoice figures together to produce a total for that employer record

  2. Use Function VIEW EOY RETURNS HISTORY and compare the invoice totals to ensure they match the figures on the latest return for that year

  • If they do not match contact the employer to establish the reason for the discrepancy
    • Send a copy of the Stock Letter P35MT / Invoice (Word 30KB) to the employer and keep a copy of the letter with your papers
    • BF your papers for 4 weeks
    • Follow steps 15 to 21 if the invoice relates to a MT submitted return
    • Go to step 22 at the BF date in all cases
  • If they do match and the invoice relates to an EDI submitted return use Function AMEND EMPLOYER NOTES to record your actions and then file the invoice in the employer record pad
    • If they do match and the invoice relates to a MT submitted return go to step 15
  1. When capturing a return without the invoice you must initially enter ‘0’ in the Number of P14s field. You must now amend the employer record to show the correct position
  • Use Function CAPTURE EOY RETURN DETAILS
    • Select return class ‘Additional’
    • Select MT
    • Select the [OK] button
  1. You will be presented with the advisory message ‘P35MT already captured for this year’
  • Select the [OK] button
  1. You will now be taken to the Capture EOY Return Details Additional / Correction screen
  • Enter the number of P14s shown on the invoice(s)
  • Select the [OK] button
  • Select the [OK] button again when presented with the screen for a second time
  1. You will now be presented with the advisory message ‘Entries in all the monetary amount fields are 0.00. Confirm you wish to capture a NIL return’
  • Select the [OK] button
  • A P228 will not be generated
  1. Use Function AMEND EMPLOYER NOTES to make a note that you have captured an additional return for the year purely for the purposes of correcting the number of P14s field

  2. If the return was received before the deadline use Function AMEND EMPLOYER NOTES to record your actions and then file the invoice in the employer record pad, otherwise

  3. If the return was received after the deadline for filing pass the case to the ECS Penalty Officer to

  • Remove the temporary inhibition signal on ECS
  • Review the penalty position
  1. If you put the papers on BF at step 14

At the BF date check to see if the employer has forwarded a reply

  • If you have not received a reply issue a reminder and BF the papers for a further 4 weeks
    • If there is no reply after the further 4 weeks go to step 23
  • On receipt of a reply go to step 24
  1. At the BF date if there is no reply you must
  • Send a copy of the letter issued to the employer to the Debt Management Office, and
  • Use Function AMEND EMPLOYER INDICATORS to set the INSTIND(1) indicator
  1. When you receive an explanation of the discrepancy from the employer you must review the information
  • If the invoice(s) shows the correct amounts go to step 25
  • If the return shows the correct amounts go to step 26
  1. If the invoice(s) shows the correct amounts the employer’s reply must be accompanied by a ‘correction’ return to account for the discrepancy
  • Use Function CAPTURE EOY RETURN DETAILS to capture the ‘correction’ return. Follow the appropriate Action Guide, see ‘Capturing annual return - up to 2004 (Action Guide menu)’ at PAYE42011
  1. If the return shows the correct amounts you must firstly prepare a ‘correction’ return so that the P35MT shows the same figures as the invoice (this is essential)
  • Use Function RECORD RETURN RECEIPT to capture the ‘correction’ return. Follow the appropriate Action Guide, see ‘Capturing annual return - up to 2004 (Action Guide menu)’ at PAYE42011
  1. The employer must provide an ‘additional P35’ and paper forms P14 to account for the difference
  • On receipt of the paper forms P14 forward the revised details to the PAYE section
  • Use Function RECORD RETURN RECEIPT to record receipt of the ‘additional’ return. Follow ‘Recording receipt of employer return (Action Guide)’ at PAYE41041
  • Use Function CAPTURE EOY RETURN DETAILS to capture the ‘additional’ return. Follow the appropriate Action Guide, see ‘Capturing annual return - up to 2004 (Action Guide menu)’ at PAYE42011