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HMRC internal manual

PAYE Manual

From
HM Revenue & Customs
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Employer returns: issue / cancel employer returns: end of year forms returned DLO and RLS (Action Guide)

To take the appropriate action when you receive a return that has been returned to you RLS or DLO, follow steps 1 - 15 below. The Guide is presented as follows

Step 1

Steps 2 - 5

Steps 6 - 9

Steps 10 - 15

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

 

Initial action

  1. Use Function VIEW EMPLOYER SUMMARY to see whether the address on the employer record (correspondence address) is different to the address on the return
  • If the address is different go to step 2

Otherwise

  • Go to step 6

Different addresses

When the address on the return is different to the correspondence address held on the employer record

  1. Use Function VIEW BROCS to check the prime designatory data (Format 6). Does the new address on the employer record match the address held as the communication address on BROCS?
  • If it does go to step 3

 

  • If the addresses do not match go to step 4
  1. If the correspondence address on the employer record and the communication address on BROCS match
  • Use Function ISSUE / CANCEL EOY RETURN to issue a duplicate return

 

  • Consider whether the new address is still in your area or whether the employer record needs to be moved. See section ‘Movement of an employer record’ PAYE30000 onwards for more information

Note: If the return you have received is a (TAS) you will not be able to use this function and will need to reissue this form manually.

  1. If the correspondence address on the employer record does not match the communication address on BROCS you must
  • Send a memo to Banking Operations giving the new address

 

  • BF your papers for 1 week

 

  • At BF use Function VIEW BROCS again to check whether the communication address has been updated
    • If the address has been changed go to step 5
    • If the address has still not been amended telephone Banking Operations and advise them of the new address details
    • Await confirmation of the change of address on BROCS and then go to step 5
  1. If the addresses now match use Function ISSUE / CANCEL EOY RETURN to issue a duplicate return
  • Consider whether the new address is still in your area or whether the employer record needs to be moved. See the subject ‘Movement of an employer record’ PAYE30000 onwards for more information

Note: If the return you have received is a P35(TAS) you will not be able to use this function and will need to reissue this form manually.

Old address DLO or RLS

Where the addresses shown on the return, employer record and BROCS are the same you will need to do the following

  1. Review the employer record to establish the status of the employer record
  • Use Function VIEW EMPLOYER SCHEME HISTORY to establish any of the following
    • If the employer record holds a cancellation date go to step 7
    • If the employer record holds a cessation date, has been merged out or succeeded go to step 8
    • If the employer record has been transferred out go to step 9
    • If none of these apply go to step 10
  1. Where a cancellation date is held on the employer record you can dispose of the return as confidential waste
  • Use Function VIEW BROCS (Format 9) to check if the BROCS record has been cancelled.

If the BROCS record shows that it has been cancelled take no further action

Otherwise

If the cancelled status is not set on the BROCS record you will need to reopen the year and cancel the employer record again. See the subject ‘Cancellation of an employer record’ PAYE21015 for more information

  1. Where the employer record holds a cessation date or has been merged out or succeeded then you must pass the papers to the Recovery Office
  • Advise them what has happened

 

  • Use Function AMEND EMPLOYER NOTES to record your actions and then file the papers in the employer record pad
  1. If the employer record has been transferred out mark the papers ‘Urgent’ in red and forward them to the new office

Obtaining a new address

Where the return is returned to you as either RLS or DLO you must take the following action

  1. Use Function VIEW EMPLOYER NOTES check the employer record pad and any other papers to review the information you hold for the employer record. Is there any indication of a new address?
  • If there is use Function AMEND EMPLOYER SUMMARY to access Function ADDRESS SEARCH to store the new address on the employer record

 

  • If there is no new address initially found go to step 11
  1. Use Function VIEW EMPLOYER SUMMARY to see whether the RLS or DLO indicators are set
  • If either of these indicators are set go to step 13

 

  • If neither are set go to step 12
  1. If neither RLS or DLO indicators are set on the employer record
  • Use Function AMEND EMPLOYER SUMMARY to set the RLS indicator in both situations
     
    Note: It is not possible to manually set the DLO indicator. Subject ‘Maintain employer address’ PAYE21160 gives further information.
  1. You will need to take steps to attempt to obtain a new correspondence address
  • Are there any other addresses that can be used?

 

  • Is there an agent acting who can provide a new correspondence address?

 

  • Is there a director or directors who can be contacted to provide a new address?

 

  • Contact the CT and Self Assessment sections to establish whether they hold a new address
  1. Have you been able to obtain a new address?
  • If you have been able to obtain a new address use Function AMEND EMPLOYER SUMMARY to access Function ADDRESS SEARCH to store the new address on the employer record

 

  • If you still have not been able to obtain a new address go to step 15
  1. Where you have not been able to obtain a new correspondence address
  • Use Function AMEND EMPLOYER INDICATORS to set the INSTIND(1) indicator

 

  • Send a memo to the Recovery Office
    • Explain that the employer cannot be traced as all addresses are RLS or DLO
    • List those addresses
    • State that attempts to trace the employer have failed and that you are now making the case the Recovery Office’s responsibility

 

  • Use Function AMEND EMPLOYER NOTES to record your actions and then file the papers in the employer record pad