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HMRC internal manual

PAYE Manual

From
HM Revenue & Customs
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P11D processing: ECS / NPS inhibition signal: review ECS / NPS inhibition signal

Checking why the signal has been set

From 2010-11 you should not normally need to unset this signal, since it has been set manually for a particular reason, unlike in earlier years when it would have been set automatically following the submission of electronic returns.

Initially you must check for notes on ECS and / or EBS to verify why the signal has been set.

The most common reason why the inhibition has been set is because the employer payrolls all of the benefits to all of their employees, and therefore we do want to prevent the P11D details flowing from ECS to NPS.

You must not unset this signal where it has been set because of payrolling, as this will result in the affected employees paying tax twice on their benefits; once through their salary and again through their tax codes.

If you exceptionally need to unset the signal

If exceptionally you do need to unset this signal, you must ensure that any paper additional or amended forms P11D for the employer are worked prior to the removal of the ECS / NPS Inhibition Signal.

The P11D screen automatically opens in CY1-1 and if you want to review a different year, then you need to select the relevant year from the drop down menu in the ‘Year’ box.

You will need the ECS Role ‘P11D Manager’ to remove the ECS / NPS inhibition signal

  • For each case listed on the P11D Inhibition Cases List review the Employer ECS record
  • Enter the Employer Reference in the Select Employer screen, select the Tab key
  • Select the P11D button, the P11D Screen will be displayed

Check whether the ECS / NPS Inhibition signal is set

  • If the signal is set select the box to remove the tick
  • If the signal is not set do not take any further action

This will enable P11D information to be passed from ECS to NPS and the case should be removed from the list when it is updated. The list is updated weekly.

Note: In all cases where the signal has been removed you should add a note to both ECS (PAYE57336) and EBS to say that the signal has been removed and why.