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HMRC internal manual

PAYE Manual

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HM Revenue & Customs
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Reconcile individual: reconciling CY-6 to CY-2: reconciling multiple years - re reconciling years

Where a year that was previously part of a multiple year reconciliation needs to be re reconciled, all years covered in the original reconciliation onwards, starting with the year now being re-reconciled, will be reviewed. Whether or not the new reconciliation follows the multiple year or single year processing rules will depend on the year being re-reconciled, that is, in a case where the original multiple reconciliation covered three or more years

  • And the year being re-reconciled leaves two or more subsequent years requiring re-reconciliation, the years concerned will be included in a new multiple year reconciliation. For example, in a case where the original multiple year reconciliation covered CY-4 to CY-1 and CY-3 is being re-reconciled, a new multiple year reconciliation covering years CY-3 to CY-1 will be undertaken

Whereas

  • Where the year being re-reconciled is the last one included in the original multiple year reconciliation, the year concerned will follow single processing rules. For example, in a case where the original multiple year reconciliation covered CY-4 to CY-1 and CY-1 is being re-reconciled, single year processing covering CY-1 only will be undertaken

In a case where the re-reconciliation is automatically triggered by the system, for example on receipt of a P14 ‘End of Year’ (EOY) record or ‘Earlier Year Update’ (EYU), where it is

  • Possible to re-reconcile all relevant years (CY-3 to CY-1 in the example above) all relevant tax calculations will be issued automatically and the customers PAYE Service Reconciliation and Accounting records will be updated with details of the calculations issued

    • If any P60s or P45(1)s were used in any of the tax calculations the following Contact History note will be made ‘Reconciled account, instead of raising WI315. Used P60 or P45(1) details for tax years missing P14 information’
  • Not possible for the system to automatically re-reconcile the case

    • As the system identifies more than five reasons as to why the customer is over / underpaid, work item 300 (Action guide tax40112) will be created to allow the case to be reviewed manually
    • Because something has changed preventing all relevant years to be included in a re-reconciliation, work item 315 (see action guide tax40134 WI315) will be created to allow the case to reviewed manually

In a case where the re-reconciliation is triggered online, for example by input of a P60 and

  • It is still possible to undertake a multiple year re-reconciliation, you will be presented with the Multiple Years Reconciliation screen showing the years to be covered in the re-reconciliation to allow you to review the years concerned
  • It is no longer possible to re-reconcile the appropriate years, you will be presented with the message ‘The system cannot re-reconcile the same tax years as previously reconciled. Further investigation is required’. Follow action guide tax40134 WI315 to resolve matters

In a case where a multi-year re-reconciliation takes place, and the final years status taking into account tax already refunded is now ‘Reconciled - Balanced’, the status of the earlier years may ‘Reconcile - Overpaid’ repaying tax which has already been repaid through the later year. Where this situation is identified see action guide tax40013.

Note: From 2016-17 onwards, if a customer’s residency status changes (Scottish to non-Scottish or vice versa) for year that has already been reconciled, a re-reconciliation will be triggered following the reconciliation rules.

For further information on Scottish tax, see PAYE100035.