Reconcile individual: end of year reconciliation: SA start year
The PAYE Service is automatically notified at the point at which a Self Assessment (SA) record is set up /re-opened for a customer and it uses the date / year concerned along with the Live SA, SA Start Year and SA Final Year information displayed in the Indicator Details screen to determine whether or not the customers tax liability for a given year will be settled through SA or, by a reconciliation undertaken on NPS.
SA cases set up / re-opened before 7 July 2015
For cases set up / re-opened on SA before 7 July 2015, the date concerned is used to set an SA start year onto their NPS record by converting the date to an SA start year equivalent to the current year (CY). Details of the year concerned is held / displayed in the SA Start Year screen (PAYE93033).
In converting the date on which an SA record is set up to a PAYE Service start year equivalent to CY, the years concerned will be correct in the majority of cases. However, this will not always be so and for cases where SA commenced in a year prior to CY (for example in cases where work item 236 (action guide tax40046 WI 236) is being worked) and, for cases currently in SA that the PAYE Service does not already hold an SA start year for, the SA Start Year screen allows you to
- Update the SA start year held to a year earlier than CY
- Add an SA start year to a period of SA where a start year is not already held
In cases where you are setting up an SA record for the first time and / or you are reopening an SA record and the first / new SA year is not CY, to allow time for NPS to be noted with the new SA interest, you will need to wait up to 3 days from the date on which you set up / reopen the SA record before you can set / update the SA start year on NPS to a year earlier than CY. (Action guide tax40171 refers).
SA cases set up / re-opened on or after 7 July 2015
For SA cases set up / re-opened on or after 7 July 2015, in addition to being notified that this has happened SA will send NPS the actual Start Date on which the customers SA criteria started / recommenced. The date is converted into a year and details of it display in the SA Start Year field in the indicator Details screen.
For cases where the SA Start Year notified to NPS is CY-1 and / or earlier, the NPS record of the customer will be automatically updated as follows:
- the year(s) concerned will be updated to show a status of ‘ Reconciled – SA’
- contact History notes of’ Reconciliation status set to SA’ and, showing the year(s) concerned will be entered onto their records
- where there is a CY-1 underpayment above PAYE tolerances outstanding and, the underpayment arose as a result of a single CY-1 reconciliation, the underpayment concerned will be cancelled
where one or more of the following work items are open for the new SA year, they will be closed: WI98, WI102, WI107, WI117, WI217, WI236, WI300, WI301, WI309, WI440, WI441, WI442, WI443, WI444, WI445 and.or WI447
Note: Further instructions on how to set up or re-open an SA record can be found at SAM100221 and SAM101093.