PAYE71020 - PAYE operation: aspects of PAYE operation - employee: coding: lost deduction documents
You may be told by the Employer Unit that the employer has lost deductions working sheets, code notifications and / or other records, for example, in a fire or theft.
Where you are told that the employer has enough information to prepare duplicate records
- Use the coding function to issue a duplicate form P6 for each employee whose records have been lost
Where you are told that the employer does not have enough information to prepare duplicate records
- Use the coding function to amend each live employee's code to Week 1 / Month 1 basis, but do not calculate any potential underpayment
- Remind the employer, for more information on Week 1 / Month 1 tax codes they can go to GOV.UK/HMRC homepage Operating PAYE in real time
Employee on week 1 / month 1 as result of loss of records
Employees on a Week 1 / Month 1 code as a result of the loss of records may ask
- That a cumulative code be used for the rest of the year
Or
- For a repayment on the grounds of unemployment or final cessation of work
If so
- Ask the employee for details of earnings and tax deducted for the period from 6 April to the date on which the employer records were lost
- If necessary estimate earnings, bearing in mind the
- Employee's previous rates of pay
- Possibility of overtime, bonus payments and the like
- Level of earnings after the lost records taking into account any change in circumstances, such as possible damage to the employer's business premises
- Amount of the employer's previous monthly remittances to Banking Operations. Consider this only where a few employees are affected
And
- Any other information available from the employer
- If necessary ask the Debt Management Office if they have any information that may assist