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HMRC internal manual

PAYE Manual

HM Revenue & Customs
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Reconcile individual: end of year reconciliation: automatic reconciliation where code NT operated

Where a form P14 is received and a ‘Period of NT’ has been recorded in EMPLOYMENT SUMMARY for the tax year (see PAYE64040) and a NT code has been issued

  • An automatic apportionment of the P14 pay will be done for the ‘Periods of NT’ recorded
  • Where no ‘Period of NT’ exists on the record, no apportionment will be done
  • The newly calculated liable amounts of pay and tax will be used within the reconciliation calculation and will be displayed on the PAY AND TAX SUMMARY screen, and the P14 SUMMARY / END OF YEAR RECORD SUMMARY will display the details within the fields ‘Calculated Pay this Employment’ and ‘Calculated tax this Employment’
  • All employments that fall within the NT period will have the income and tax apportioned. If this is not as required the Inhibit Automatic Reconciliation indicator needs to be set

Note: Where there is no ‘Period of NT’ recorded in EMPLOYMENT SUMMARY the ‘Calculated Pay this Employment’ and ‘Calculated tax this Employment’ fields will not be displayed.

NI Only Employments

Under RTI, where an employer submits an FPS which shows both ‘Taxable Pay to Date’ and ‘Total Tax to Date’ of nil, but the employer continues to deduct National Insurance (NI) contributions, the individual’s employment record will be treated as ‘NI Only’. See PAYE11010.

The ‘NI Only’ employment will be included within the reconciliation calculation issued for the year and will show ‘PAYE Pay’ of £0.00 and ‘Tax Paid’ of £0.00.