PAYE92035 - Reconcile individual: posting EOY information to individual records: overview of responsibilities at the end of the tax year

Detailed information about what an employer does at the end of the tax year and the various forms that they are obliged to complete can be found within the ‘Employer Returns’ business area of this Manual.

The following is a very brief summary, to provide an overview, of the various people involved in the end of year process.

The remainder of this subject is presented as follows

Banking Operations
Employer Office
Department for Work and Pensions (DWP)
PAYE Errors Unit (PEU)
Debt Management offices 

Banking Operations

Banking Operations issue P35 ‘Employer Annual Return’ forms to non-RTI employers. These employers then submit their end of year PAYE return to the relevant processing office, or use electronic filing.

Employer Office

The Employer Office records the receipt of P35 returns, and where forms P14 have been submitted on paper, they send the relevant P14 parts to the Data Entry Group (DEG) for processing. The forms P14 will then be processed by this team and passed to the Channel Routing Interface Service (ChRIS), and, along with electronically filed forms P14, once they have passed the quality standards and are consolidated with the P35, they are passed on to taxes computer systems, including the National Insurance and PAYE Service (NPS).

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Department for Work and Pensions (DWP)

The DWP submits P14 details for individuals who are still claiming Jobseeker’s Allowance (JSA) payments at 5 April. See PAYE78100 for more information.

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PAYE Errors Unit (PEU)

The PEU will consider all employer requests for a direction under Regulation 72(5) Condition A of the PAYE Regulations 2003 and will handle employer appeals if a direction is refused or if the individual appeals if a direction is made.

An employer being pursued for payment of a PAYE under-deduction, may ask for a direction to be made if the employer believes reasonable care was taken to comply with the Regulations and the under-deduction arose through an error made in good faith (the ‘honest mistake’).

For further information regarding directions made by the PEU see ‘PAYE errors unit (PEU)’ at PAYE92050.

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Debt Management offices

Debt Management offices are responsible for collection of PAYE under-deductions due from the employer or for any PAYE tax determined under Regulation 80.