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HMRC internal manual

PAYE Manual

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HM Revenue & Customs
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Employer returns: issue / cancel employer returns: non receipt of employer return (Action Guide)

When it has been decided that further action will not result in an outstanding return being received you will need to follow steps 1 - 10 below. The Guide is presented as follows

  Step 1
   
  Step 2
  Steps 3 - 4
  Step 5
  Steps 6 - 10

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

Where a return has not been received and it has been agreed that further action to pursue the return is unlikely to result in the return being obtained, the Debt Management Office will refer the case to the Processing Office to take up.

Initial action

1. Review form P212 or memo received from the Debt Management Office to determine the action to take
   
  * Where it has been indicated that the employer or contractor cannot be traced go to step 2
  * Where it has been indicated that no credits are held on the BROCS record go to step 3
  * Where it has been indicated that there are credits of over £10 on the BROCS record and it has not been possible to account for these go to step 5
  * Where it has been indicated that there are credits of less than £10 on the BROCS record go to step 6

Employer / Contractor not traced

2. If you have received a form P212 and papers from the Debt Management Office because the employer or contractor can no longer be traced your next action will depend on whether there is any payment held on the BROCS record for that record
   
  * If there is no payment
  * Use Function AMEND EMPLOYER INDICATORS to set the COYO indicator for the relevant year
  And then
  * Use Function AMEND EMPLOYER SCHEME HISTORY to enter a cessation date of 31 March for the last year cleared
  Note: This will be either as a result of receiving an actual return or the year being cancelled one year only.
  * If there is a payment on the record and a pro forma partially reconstructed ‘POP’ return has been received
  * Use Function CAPTURE EOY RETURN DETAILS to process that return
  Note: Ensure you enter a tick in the NFP checkbox on the P228 Remarks screen.
  And then
  * Use Function AMEND EMPLOYER SCHEME HISTORY to enter a cessation date of 31 March for the year of the pro forma return

No credits held

3. If you receive papers from the Debt Management Office where there are no credits on the BROCS record for the employer go to step 4
   
4. Consider from the papers you hold whether the employer record should be closed. If it is clear that the scheme has ceased and there has been no activity in a year you should put the date of cessation as 5 April of the last tax year where there was activity
  See ‘Cessation of an employer record’ at PAYE21030 and ‘Dormant employer records’ at PAYE21055 for further information

Credits over £10

5. If you receive a pro forma constructed ‘POP’ return from the Debt Management Office where credits of over £10 exist on the BROCS record, and it has not been possible to fully account for these amounts, and enquiries indicate that the overpayment should not be reallocated or repaid
   
  * Use Function CAPTURE EOY RETURN DETAILS to process the return and ensure you enter a tick in ‘NFP’ checkbox on the P228 Remarks screen

Credits less than £10

6. Your action will depend on what papers have been sent to you by the Debt Management Office
   
  * If you receive a pro forma constructed ‘POP’ return go to step 7
  * If you receive a form P212 and no ‘POP’ return and it is considered that the payment should not be reallocated or repaid go to step 8
7. Use Function CAPTURE EOY RETURN DETAILS to process the return and ensure you enter a tick in the ‘NFP’ check box in the P228 Remarks screen
8. Use Function VIEW BROCS (Format 3 - ‘Postings Summary’) to review details of the payment that has been moved to OAS
  * If you hold information about employees or subcontractors to whom the payment relates go to step 9
  * If you do not hold any information to reconcile the payment go to step 10
9. If you are able to establish how the payment has arisen
  * Send a memo to the Debt Management Office reporting the details you hold
  * Use Function AMEND EMPLOYER INDICATORS to set the INSTIND(1) indicator for the year
  Note: Once this indicator is added to the set list box for the year it will not reappear there once you have selected the [OK] button and left the function.
10. If you do not hold any information to reconcile the payment
  * Use Function AMEND EMPLOYER INDICATORS to set the COYO indicator for the relevant year
  * Consider from the papers you hold whether the employer record should be closed or made dormant. See ‘Cessation of an employer record’ at PAYE21030 and ‘Dormant employer records’ at PAYE21055 for further information