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HMRC internal manual

PAYE Manual

From
HM Revenue & Customs
Updated
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Employer returns: employer return post capture: recovery of excess tax credit funding - up to 2002 (Action Guide)

Note: This Action Guide provides details of how to deal with tax creditfunding for tax years up to 2001/02.

If you receive a notification from an Employer Compliance Investigation Team (ECIT) follow steps 1 - 8 below. The Guide is presented as follows

  Step 1
   
  Steps 2 - 3
  Steps 4 - 5
  Steps 6 - 8

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

Initial action

Your initial action will depend on whether the Tax Funding Discrepancy indicator is seton the employer record for the year
 

  1. Use Function VIEW EOY RETURNS HISTORY to identify whether or not the Tax Funding Discrepancy indicator is set on the employer record for that year
     

Tax funding discrepancy indicator set

    • If the indicator is set go to step 2
    • If the indicator is not set go to step 4
      1. If the tax funding discrepancy indicator is set on the employer record prepare a Correction return. Further information is available in Action Guide ‘Captured Returns - Exceptions - Up To 2004’ PAYE46011
         
      • If a Regulation 12 (Tax Credits (PVE) Regulations 1999) determination has been issued the correction return will be provided by the Debt Management Office and noted ‘Priority - Regulation 12’ in red ink
        1. Use Function CAPTURE EOY RETURN DETAILS to process the correction return
            ## No funding discrepancy indicator set
        • Select ‘correction’ as the return class
        • If a tick is present in the Funding Discrepancy box, select that box to remove the tick
        • Enter the amount of excess funding recovered in the Tax Credits Funding field
          1. If the Tax Funding Discrepancy indicator is not set on the employer record prepare a correction return. Further information is available in Action Guide ‘Captured Returns - Exceptions - Up To 2004’ PAYE46011
             
          2. Use Function CAPTURE EOY RETURN DETAILS to process the correction return
              ## Advisory message

      While you are using Function CAPTURE EOY RETURN DETAILS you may be presented with theadvisory message ‘The amount of Tax Credits Funding you have entered does not agree withthe figure held by the Tax Credit Service of £. You must investigate the Discrepancy’.When this happens you should
       

      *   * Select 'correction' as the return class
          * Enter the amount of excess funding recovered in the Tax Credits Funding field
          1. Select the [OK] button within the message  
             
          2. Select the [OK] button on the Capture EOY Return Details Additional / Correction screen to process the correction return  
             
          3. On the next working day, when the record has been updated use Function CAPTURE EOY RETURN DETAILS  
             
          *   * Select ‘correction’ as the return class
              * Select the Funding Discrepancy Indicator checkbox to remove the tick
              * Make no other changes to this screen
              * Select the [OK] button