Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

PAYE Manual

From
HM Revenue & Customs
Updated
, see all updates

Employer returns: employer EOY penalties: end of year exception list screen

This screen

  • Gives details of the employers ECS has been unable to automatically issue penalties to

And

  • Indicates why it was not possible to automatically issue the penalty

To access the screen

  • Select the [P35 Penalties] button within the Special Functions screen

The list can be viewed for each district by entering the three digit number in the District field.

The screen displays the following

 

Search Criteria

The field within the Search Criteria of the screen allows you to

  • Search the penalty exceptions by penalty type
  • Sort the order in which information in the screen is displayed

And / or

  • Filter the exceptions in the screen to a particular exception type
Field Purpose
   
Penalty Type Allows you to select by penalty type
  * LATE P35S
  * INTERIM PENATIES
  * P35S OVER ONE YEAR LATE
Employer Reference Start Allows you to enter the employers reference you wish to start the search on
Employer Reference End Allows you to enter the employers reference you wish to end the search on
Sort Order Dropdown menu which allows you to choose the order in which the exceptions are displayed. The screen defaults to display exceptions by EMPLOYER REF, EMP NAME, ASC, EMP NAME, DSC. When you sort by
  * EMPLOYER REF the exceptions are listed
  * By employer reference only
  * EMP NAME, ASC the exceptions are listed
  * By employer name in A-Z order
  * EMP NAME, DSC the exceptions are listed
  * By employer name in Z-A order
Filter Dropdown menu which allows you to filter the screen to display a particular type of exception. The options available are
  * MULTIPLE
  Note: This will not apply where you have selected penalty type list ‘Interim Penalties’. If selected the error message ‘The filter does not apply to the penalty type’ will be displayed
To continue select the [OK] button    
    * TRADING NAME
    * APPEAL
    * RLS
    * TEMPORARY INHIB
    Note: This option returns you to the full list with all employers displayed regardless of the reason for the penalty failure
  [Search] button Allows you to invoke a search

To sort the exceptions list

  • Select Sort Order field and highlight the appropriate sort order
  • Select the [Search] button

You will be returned to the End of Year Exceptions List screen in which the exceptions will be displayed in the order selected.

To filter the information displayed in the exceptions list

  • Enter the appropriate references (if required) into the Employers reference Start and Employers Reference End fields
  • Select the arrow within the Filter field and highlight the required choice of filter
  • Select the [Search] button

You will be returned to the End of Year Exceptions List screen in which the information displayed will be limited to the chosen references / exceptions.

Multiple column

Where letter ‘Y’ is present in the Multiple column, ECS has been unable to automatically issue a penalty because more than one return has been received.

Where the signal is set you must access ECS and check whether any penalties have already been issued

  • If no penalty has been issued you need to decide if one is due by checking ECS / EBS notes and entries for returns received
  • If a penalty is due

    • Go into ECS and in the Employer Penalty History screen
    • Select the [Issue] button. You will be taken to the Issue Penalty screen for the relevant case
    • Amend the details in the Number of Employees and / or the Total Tax / NIC fields as necessary
    • Select Calculate
    • Select the [Issue] button

Trading Name column

Where letter ‘Y’ is present in the Trading Name column ECS has been unable to automatically issue a penalty as the employer’s EBS record includes a trading name.

Note: Issue of penalty notices must be to a named person where the employer is not a limited company. Partnership names and trading names held on employer records must therefore have additional addressing information to ensure that they comply with legal requirements.

Where the Trading Name exception signal is set, you can issue the penalty manually through ECS if you know the named person the penalty should go to. To do this

  • Select the appropriate entry in the exceptions list
  • Select the [Issue] button. You will be taken to the Issue Penalty screen for the relevant case
  • Complete the Name to be Addressed to field within the screen with details of the addressee
  • Select the [Issue] button

Appeal column

Where letter ‘Y’ is present in the Appeal column, it has not been possible to issue a penalty notice because at the date the list was run, there was an outstanding appeal against a previous penalty notice issued to the selected employer for the selected year. You must check the ECS Appeal screen to see if the appeal has now been settled and the penalty can be issued.

RLS column

Where a letter ‘Y’ is present in the RLS column (where undelivered mail is returned by the post office), ECS has been unable to automatically issue a penalty, as the last known address of the employer is RLS.

Where the signal is set you must

  • Ensure that the RLS signal is still valid and that appropriate tracing action is taken

If as a result of the tracing action taken

  • A new address is found (and the RLS signal is removed) ECS will charge appropriate penalties and no longer include the case on the exceptions list
  • The scheme is cancelled; ECS will no longer include the case on the exceptions list

If tracing action fails to obtain a new address, consider using the [Remove] button.

The employer’s record and file must be noted so that if a new address becomes available any penalty can be issued.

Temp Inhib column

Where a letter ‘Y’ is present in the Temp Inhib column, ECS has been unable to automatically issue a penalty as the End of Year Temporary Inhibition signal is set for the year.

Where the signal is set and you want to issue a penalty you should

  • Cancel the signal using the Penalty History screen

And

  • Issue a penalty using the Issue Penalty screen

Total field

The Total field displays a count of the cases within the End of Year exceptions list screen.

Buttons

[Issue] button

The [Issue] button takes you to the Issue Penalty screen (PAYE51007)

  • Complete the fields as appropriate in accordance with the guidance contained in this section

Note: You should only issue a Type 5 duty-geared penalty when Central Policy: Tax Administration Advice, Queens Dock, Liverpool (Employer Compliance) have authorised you to do so.

[No further action] button

Select the [No Further Action] button only when you wish to remove an employer from the End of Year Exceptions List without issuing a penalty

  • Select the required employer to highlight the entry

And then

  • Select the [No Further Action] button to remove the entry and set the ‘No further action’ signal in the Employer P35 Penalty History screen for the appropriate year (PAYE51005)

Notes: 

1. You will not be able to use the [No Further Action] button where the interim penalties list has been selected (use the [Remove] button instead).
   
2. Care should be exercised when setting the ‘No Further Action’ signal. This means that there will not be any further penalty action for the year involved. For example, no additional penalty will be sent to the employer if a supplementary return is submitted subsequently.

[Remove] button

Select the [Remove] button to remove an employer from the End of Year Exceptions List and therefore from consideration of a penalty

  • Select the required employer to highlight the entry

And then

  • Select the [Remove] button to remove the entry

Further penalty activity for the selected employer is not prevented for the year in question should any more incidents occur requiring penalty consideration. For example, removal of an interim penalty entry will not prevent issue of a final penalty when the return is received.

Notes: 

1. You will not be able to use the [Remove] button where the forms P35 ‘Over 1 year late’ list has been selected. (Use the [No Further Action] button instead).
   
2. Where you remove an employer from the late P35 return list and another return is received for the same year, a new entry will appear in the End of Year Exceptions List for that employer in respect of each new return received.
3. Where you remove an employer from the interim penalties list and the return remains outstanding at the date of the next interim penalty, the employer will re-appear for consideration of an interim penalty at that time.

[Up] button

The [Up] button will move you to the previous section of 20 entries in the End of Year Exceptions List or part specified.

If the button is not available this means that you are at the top of the list.

Note: This will move the entries within the whole of the list or just within the selected area if you have specified start and end employers’ reference numbers.

[Down] button

The [Down] button will move you to the next section of 20 entries in the End of Year Exceptions List or part specified.

If the button is not available this means that you are at the bottom of the list.

Note: This will move the entries within the whole of the list or just within the selected area if you have specified start and end employers’ reference numbers.

[Count] button

The [Count] button allows you to request a count of the number of entries in the End of Year Exceptions List.

Note: This will only count the entries for the whole of the list. You will not be able to count the entries where the penalties type ‘Over 1 year late’ list has been selected.

[Exit] button

The [Exit] button will return you to the Special Functions screen.