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HMRC internal manual

PAYE Manual

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HM Revenue & Customs
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Reconcile individual: HMRC delay: ESC A19: information from the employer

If HMRC has failed to make proper and timely use of information received from an employer that affects a taxpayer’s coding and results in arrears, then ESC A19 should be considered. The following forms are the main employer forms that would affect a tax code.

The remainder of this subject is presented as follows

Forms P14 and Final Full Payment Submissions (FPS)

The P14 end of year summary forms part of the Employer Annual Return. From the 6 April 2013, HMRC will consider the 2012-13 P14 form and final FPSs as information affecting a tax payer’s code, for the following year.

Form P45

Upon receipt of a form P45 indicating a new employment, HMRC should update the taxpayer’s record with the new employer details and make a decision to amend the code or allow the new employer to continue with the code on the P45.

Form P46 and Starter Full Payment Submissions (FPS)

Upon receipt of a form P46 or an FPS indicating a new employment, HMRC should update or create a taxpayer record with the new employer details and review the information provided by the employer. HMRC should make a decision to amend the code reported or allow the new employer to continue with the code, if it is the expected code for use.

Form P46(Pen)

A form P46(Pen) is used to notify HMRC that an employer is paying an occupational pension to a former employee or a Pension payer is making relevant pension payments to a recipient. As in a P46 case, HMRC should review the P46(Pen) and make a decision to amend or continue with the code reported.

Form P46 (Car)

HMRC should update or amend a taxpayer’s code upon receipt of form P46 (Car). This will ensure that the taxpayer starts paying tax on the car without incurring a substantial underpayment after the tax year end.

Form P11D

HMRC updates or amends the current year tax code when a form P11D is captured.

The measure of the underpayment that may be considered is

  • For cases where a previous year P11D has been captured, but the latest P11D has not been captured, the difference between the amount coded out and the forecast figure within the Employer Compliance System (ECS)
    Or
  • For new cases where a P11D has been received for the first time but not captured - the whole of the taxable benefit that was not included in the tax code for the year of receipt of the P11D.

See PAYE95075 for examples where the customer asks us to consider ESC A19 for the last closed tax year.

Full Payment Submission (FPS) General

At the moment we do not automatically use in-year RTI information to update a customer’s tax code.  Therefore any increase in pay or bonuses will not be taken into account in the code until the end of the tax year, unless we are notified by the customer before then, or if HMRC receives a start or leaving date on an FPS after 28th October 2015, see PAYE13090.

Other Information

Any other information that shows evidence of employer contact or correspondence that would affect a taxpayer’s code, received during the tax year can also be considered.

If you cannot trace information from the employer that affects the taxpayer’s coding, follow the line at PAYE95050.