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HMRC internal manual

PAYE Manual

From
HM Revenue & Customs
Updated
, see all updates

PAYE operation: review of claims and deductions: taxed savings (Action Guide)

Where the customer has previously shown income from taxed savings but a form P810 is received showing no entry from this source follow steps 1 - 5 below, as appropriate. This guide is presented as follows.

Note: Savings and dividend income is still taxed using the United Kingdom (England, Wales and Northern Ireland) tax rates regardless of the individual’s residency status.

Where an individual has an S prefix to their tax code this indicates they are liable to pay tax at the Scottish rates on their non-savings and non-dividends income. Further information on the Scottish rate of Income Tax is given at PAYE100035.

  Steps 1 - 3
   
  Steps 4 - 5

Initial action

1. Write to the customer and ask why, when he / she has previously shown income from taxed savings, no entry has been made on the form P810
   
2. Make a Contact History note to record the request for evidence to support the claim
3. Do not amend the code and leave any existing HRA

Reply received

4. If you are satisfied with the evidence provided
   
  * If a tax calculation is required you should include a customer service note ‘P810 claim agreed as’ available from SEES Office Clerical Assistant with the tax calculation that is issued to the customer, to thank them for their co-operation, and an explanation to confirm that the savings have been agreed and included in the calculation in accordance with the figures given
  * If a tax calculation is not required, write to the customer and thank them for their co-operation and advise them that no change is required to their figures
  * Amend the CY / CY+1 codes
  * Use note ‘P810 claim agreed as’ available from SEES Office Clerical Assistant to record in Contact History agreement of the expenses, and the amount of the expenses
5. If you are not satisfied with the information provided
  * Do not amend the code
  * Write to the customer and explain why you are not amending the code
  * (This content has been withheld because of exemptions in the Freedom of Information Act 2000)