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HMRC internal manual

PAYE Manual

From
HM Revenue & Customs
Updated
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Employer returns: regulation 80 determinations: effect on employees

Where additional payments are discovered and the tax is collected from the employer and a determination has become final, take the following action.

Details of the additional pay and tax should be sent to the employees Processing Office on form P383. For each employee give

  • Details of the further earnings
  • Instruct the employees office to make necessary adjustments for PAYE employees on NPS and issue a revised Tax Calculation P800

Or for SA taxpayers

  • Make an enquiry into the return and amend the assessment if necessary, taking account of the fact that a credit for the tax is strictly due

For cases working with Employer Compliance or within PT Operations, where the tax recovered is due to an under deduction (the amount of pay does not change), take the following action

  • Notify the employee’s office as follows

    • For PAYE employees, advise the office to give a credit for the tax that should have been deducted within NPS. This may result in a P800 being issued
    • For SA employees, make an enquiry into the return and amend the assessment if necessary, taking account of the fact that a credit for the tax is strictly due

Note that time limits apply for enquiries into assessments. Also that a Regulation 185(5) and 188(3) require you to limit the amount of credit you allow to prevent an overpayment, so as the employee is not repaid tax they didn’t pay.

Watch for any case where EIS accepts a lower equitable tax figure and only give credit for the employee’s share of this reduced figure.