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HMRC internal manual

PAYE Manual

Reconcile individual: reconciling CY-4 to CY-2: reconciling multiple years - reconciliation and tax calculation results

The rest of this subject is set out as follows


When a multiple year reconciliation is triggered, the system automatically applies rules to each year in the reconciliation in isolation to determine the accepted result for the year before applying final results (PAYE96275) to them. Once done, where the multiple year reconciliation was triggered

  • By batch (for example on receipt of a P14) the system will automatically

    • Issue the appropriate Tax Calculations (P800)
    • Update the customer Reconciliation and Accounting records
  • Online the resulting tax calculations will be entered into the Tax Calculation screens for the appropriate years and you will be required to access them through the Multiple Years Reconciliation Summary screen (PAYE93016) and review them (PAYE96220) before you


    • Amend them (PAYE96230) and then approve them for issue


The rules applied by the system in determining the accepted result for the year are dependant upon the particular circumstances of the year concerned and whether or not the year is the first, second and / or subsequent or final year within the multiple year reconciliation being undertaken. Further details of the rules concerned are how they affect the accepted result can be found at

Year in isolation

The year isolation is the result for the year on its own taking into account any underpayment that was coded out to be collected in the year.

Accepted result

The accepted result is the result accepted as being correct for the year concerned. In most cases this will be the actual underpayment or overpayment arising during the year but this will not always be the case. For example, in a case where the actual underpayment calculated is £350, if a potential underpayment (PUP) of £305 arose in a year, the year would be set to ‘Reconciled - Balanced’ and the £305 PUP would become the accepted result (underpayment) for the year.