Reconcile individual: in-year reconciliation: cessation repayment calculation
You will trigger a cessation repayment when you input the date of receipt of and information from the following forms on the IABD screen (Action guide tax40248)
- P50 (where declaration 3 has been ticked). This will trigger the in-year cessation or unemployed type repayment
- P85 this will trigger the in-year cessation leaving the UK type calculation
In all cases the Tax Calculation Screen will be displayed. The repayment cannot go ahead where P45 Part 1 details are not already held, or equivalent FPS leaving information has not been received. You must not attempt to input the P45 Part 2 and 3 details, if held, as P45 Part 1 data. PAYE94015 details the action to take if you are unable to process the claim as the P45 Part 1 or FPS leaving information has not been received.
You should always access the Edit Employments screen to check that the ‘Total Pay and Tax in this employment’ fields are populated. If they are not you should enter the total pay and tax in this employment in the relevant fields. Where there are previous pay and tax details from a previously ceased primary employment, you must deduct these from the ‘Total Pay and Tax to date’ to work out the ‘Pay and Tax in this employment’.
You should do this for all previous primary employments in the year.
Where notification is received of a payment made after leaving, the income may not have been included within the pay and tax for this employment.
Non RTI employers will not issue a further P45, therefore to include these amounts within the reconciliation you should edit the pay and tax details within the employment details, see PAYE64010. A Contact History note should be made detailing the original P45 details and the additional payment, see PAYE105020.
RTI employers will submit an FPS with details of a payment after leaving, which will allow these details to be automatically included within the reconciliation.
When you reach the Tax Calculation Screen P45 details will already have been posted to the record. The Tax Calculation screen also enables you to send a copy of the calculation to someone other than the individual.
- Tick the appropriate box to indicate who the calculation is to be issued to, this will be the individual, the agent, the capacitor or the personal representative
- Check if a copy of the calculation needs to be issued to another recipient for example the agent and, if so, select those the copy needs to go to
- Select the [Submit] button to invoke the calculation
In-year cessation - leaving the UK
For in-year cessations for leaving the UK, the ‘Date of Leaving UK’ indicator must be set. The date of leaving the UK can be entered on the ‘Individual Indicator Details’ screen. It can be viewed on the Individual Summary’ screen and from 10 July 2016, on the Historical Residency Status screen.
From July 2016, entering a date in the field will allow the system to calculate the correct number of days a customer is in the UK and from that the correct Scottish residency status
|1.||Where CY-1 has been reconciled and an underpayment generated (and this has not been collected), this liability will be carried forward to be included in the in-year cessation calculation.|
|2.||Where CY-1 has been reconciled and an overpayment generated (and this has not been repaid), this overpayment will not be carried forward to be included in the in-year cessation calculation.|