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HMRC internal manual

PAYE Manual

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HM Revenue & Customs
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Reconcile individual: posting EOY information to individual records: how EOY information updates an individual’s record

When a P14 for a non-RTI employment, or the equivalent EOY Record information for an RTI employment matches to an individual’s account the following screens are updated

  • P14 SUMMARY / END OF YEAR RECORD SUMMARY screen is updated when the P14 is received on NIRS, or the ‘End of Year’ (EOY) Record is created and transferred from RTI to NPS
  • PAY AND TAX SUMMARY screen is updated when the P14 is run against NPS or when the EOY Record has been received by NPS and processed
  • EMPLOYMENT SUMMARY screen is updated when the P14 is run against NPS or when the EOY Record has been received by NPS and processed

Note: If the ‘Source’ column on the PAY AND TAX SUMMARY screen does not show an entry for ‘P14’ or ‘RTI’, the P14 or EOY Record information has not yet been processed, and so will not appear on the EMPLOYMENT SUMMARY screen in the relevant tax year.

Also

There may be limited circumstances where the PAY AND TAX SUMMARY screen displays details of an RTI End of Year record that has not been fully processed through RTI. Where this is so the case / record concerned will not have generated a Contact History showing a Document Type of ‘RTI EOY’ and you should not trigger reconciliation manually to include the details.

The remainder of this subject is present as follows

How does the EOY information update the EMPLOYMENT SUMMARY screen?

RTI employments - EOY Records

For RTI employments, the regular submission of payment information allows cumulative details of the ‘Taxable Pay to Date’ and ‘Total Tax to Date’ to be built over the course of the tax year.

Following the end of the tax year, for each RTI employment which was live during the year, and for which the employer was operating under the RTI system, the RTI Service will create an EOY Record from the FPS payments details submitted. The EOY Record will be converted into the format of a P14 record and sent from RTI to NPS. Once the EOY Record has been processed under existing matching rules, the NPS record will be updated.

The processing of EOY Records will be staggered into three stages. Where the employer has indicated on either an FPS or EPS that they have made their final submission for the year, or the employment ceased during the year, the EOY record created will be included in the first stage; ‘Stage 1’ of EOY processing.

If the employer has not indicated that they have made their final submission, but FPS information is received for an individual which includes payments for Month 12 or Week 52, the EOY Record created will be included in ‘Stage 2’ of the EOY process, which will commence after the processing of Stage 1 cases has been completed.

Any remaining cases will be processed at Stage 3, which will commence after the processing of Stage 2 cases has been completed.

Earlier Year Update (EYU)

If an RTI employer needs to amend the FPS payment details submitted for the previous tax year (CY-1) after 19 April of the current tax year (CY), they will submit an EYU. This will show the difference between the ‘Taxable Pay to Date’ and ‘Total Tax to Date’ information originally submitted, and the correct ‘Taxable Pay to Date’ and ‘Total Tax to Date’ information. An ‘internal’ EYU(I) will be created where HMRC need to make an adjustment to the EOY Record.

When an EYU is received for an RTI employment, the pay and tax will be consolidated with the original EOY Record created, and only one EOY Record for the employment will be displayed in the P14 SUMMARY / END OF YEAR RECORD SUMMARY screen.

A record of the FPS and any EYU submitted for an individual can be viewed on the RTI RECORD SUMMARY screen, which can be accessed by either selecting the [RTI Data] button from the EMPLOYMENT SUMMARY screen, or the ‘Real Time Information’ subject heading from the left hand tool bar.

Work item 445

If the adjustment from an EYU results in a minus or negative ‘Taxable Pay to Date’ figure, work item 445 will be created and the ‘Inhibit Automatic Reconciliation’ indicator will be automatically set on the RECONCILIATION SUMMARY screen.

Non RTI employments - P14 End of Year Summary

Employers who do not yet operate under the RTI system or are exempt from RTI will be required to submit a P35 ‘Employer Annual Return’ with supporting ‘End of Year Summary’ forms P14 for each individual employee for the year.

For these employments, the P14 details will be received on NPS once each P14 for all employees of a PAYE scheme have been received and processed.

Amended P14s

When an amended P14 is received for a non-RTI employment, the pay and tax will be consolidated with the original P14 figures recorded, and only one P14 will be displayed in the P14 SUMMARY / END OF YEAR RECORD SUMMARY screen.

P14 and EOY Record matching rules

When either a P14 or an EOY Record is received, NPS will try to link the details to a unique matching employment with the same PAYE reference, which does not already have a P14 or EOY Record posted against it.

Note: A JSA P14U will look to match to the PAYE reference of an employment which has the JSA indicator set.

If only one matching employment is held in the tax year which the P14 or EOY Record relates to, the EOY information will match to that employment, whether the works number matches or not.

Note: The works number held on the P14 or EOY Record will not update the employment record unless a works number was not held for the employment.

Where an exact match between the works number on the P14 or EOY Record and the works number on the employment is not obtained, then the system will manipulate the works numbers in order to achieve a match. This will be by

  • Removing leading, trailing and intervening spaces
  • Removing certain special characters shown in the table below
  • Removing leading zeros
Special Character Meaning
   
% Percentage
- Hyphen / minus
/ \ Forward slash and back slash
. Full stop
? Question mark
& Ampersand
* Asterisk
( ) Open and closed parenthesis
= Equals
! Exclamation mark
Quotation marks
: Colon
; Semi colon
, Comma

 

Where this results in a number amounting to five characters or greater, this will be used in all subsequent matching processes. Where this results in less than 5 characters then the original works numbers from the P14 or EOY Record and any employments will be used in subsequent matching processes.

 

If the P14 or EOY Record cannot be matched to an existing employment one or more of the following will be used in order to find an exact match

  • Start date
  • End date
  • Tax code used
  • P45 Part 1 details where previously received
  • P60 details where these have been captured

At each stage if a match is found then the matching process ceases and the P14 or EOY Record is matched to the employment.

If the P14 or EOY Record cannot be matched to an existing employment, an employment will be created using the details on the P14 or EOY Record. The works number used to populate the employment will be the one on the P14 submission and not the manipulated works number.

If the P14 or EOY Record can be matched to multiple employments or the P14 or EOY Record creates a new period of employment and the works number can be matched to an existing employment which already has EOY information posted, work item 76 will be created.

Note: Work item 76 will not be created if work item 430 already exists.

Points to note on employments linked to a P14

If a date of leaving is held on the P14 which matches to a live period of employment the employment will be ceased with the date of leaving held on the P14 or EOY Record. If the date of leaving is a date in the future then this will be disregarded

  • You should ensure that the OCPN indicator is set on all pension employments created from a P14. This ensures that the automated process for allocation of spare allowances is applied correctly
  • If an employment has been created from a P14 which does not have an end date it will be carried forward to the next tax year
  • If an employment has been created from a P14 which holds a start date which is after the year of the P14, this will be displayed in the EMPLOYMENT SUMMARY screen in the year of the P14. For example 2010-2011 P14 received displaying a start date 26/05/11, the 2010-11 Employment Summary screen will show the start date as 26/05/11
  • If an employment has been created from a P14 or EOY Record with nil pay and tax, a date of leaving will be automatically entered as the 5 April of the P14 or EOY Record tax year

Note: In day to day work if you come across a record which holds a future end date you should update the record as follows

  • Select End Date Source ‘User’ and enter the end date as the last day of the tax year for the latest P14 year, for example if the latest P14 received was for the CY-2 tax year use 05/04/YYYY
  • Insert a new employment with the start date of the 6 April of the following year for example 06/04/YYYY

Note: When inserting a works number, do not use the ‘#’ symbol anywhere in the works number field.

Additional Notes

  • Any duplicate forms P14 received will not be displayed on P14 Summary or create a new employment
  • If a P14U is received with the empref (This content has been withheld because of exemptions in the Freedom of Information Act 2000) this will be matched to a live or potentially ceased JSA employment. If there is no JSA employment one will be created using the P14U information and a date of leaving entered as the 5 April of the P14 tax year

Note: Instances may be found where a P45 Part 1, with a matching PAYE reference, has already created a period of ceased employment in that tax year, as it was received before the P14 and so has not been able to match to the P14 created employment. If cases are found in day to day work you should follow the guidance in action guide tax40003.