PAYE96265 - Reconcile individual: reconciling CY-4 to CY-2: reconciling multiple years - second and subsequent year results
Where a multiple year reconciliation is triggered, once the accept result of the first years calculation is determined the system will consider whether or not more than one subsequent year remains within the years to be reconciled. Where it
- Does, the system will automatically apply rules to the years concerned before it looks at the final year (PAYE96270) to be reconciled. The rules applied will consider whether or not the year balances (exactly and / or within tolerances), is reconciled underpaid above tolerances or it is reconciled overpaid above tolerances. Consideration will then be given as to whether or not a potential underpayment (PUP)) was held for the year and / or whether or not an underpayment or overpayment from an earlier year needs to be accounted for. The final / accepted position for the year(s) concerned will be dependant upon the outcomes found
- Does not, the system will apply the Final year result rules (PAYE96270) to the year concerned
The rest of this subject is set out as follows
Cases reconciled balanced within tolerances
Cases reconciled underpaid above tolerances
Cases reconciled overpaid above tolerances
Cases reconciled balanced within tolerances
For the year being reconciled, where the result (in isolation) is balanced exactly or an under or overpayment within tolerances arises, a check will be made to determine if a PUP is held for the year being reconciled.
Where a year can be reconciled balanced and a PUP is not held for the year, the year will be set to ‘Reconciled - Balanced’ and the system will progress to the next year to be reconciled.
Where a PUP is held for the year, and the year results in an overpayment within tolerances, the PUP arising in the year will be cancelled and the amount of the overpayment arising will be treated as the accepted result for the year.
Where a PUP is held for the year and the year results in an underpayment within tolerances the system will determine if the actual underpayment is less than the PUP by £10 or more. Where it
- Is, the actual underpayment will be accepted as the result for the year and the amount concerned will be carried forward into the next year to be reconciled
- Is not, the PUP will be accepted as the result for the year and it will be carried forward into the next year to be reconciled
Where a PUP is held for the year and the actual underpayment is more than the PUP, the year will be ‘Reconciled - Balanced’, the PUP will be the accepted result for the year and it will be carried forward into the next year to be reconciled.
At this stage, that is after considering the PUP situation for the year the system will determine whether or not an underpayment or overpayment from an earlier year needs to be accounted for. Where it does and the amount brought forward is an
- Underpayment, the amount concerned will be added to the accepted underpayment arising in the year being reviewed and the total amount will be carried forward to the next year to be reconciled
- Overpayment (including repayment supplement), will be offset against the underpayment. If the result of the offset balance equals an under payment or overpayment
- Within tolerance the year and all preceding years will be set to ‘Reconciled - Balanced’ and the result will not be carried forward into the next year to be reconciled
- Outside tolerances the result will be carried forward into the next year to be reconciled
Once action on determining the position for the year has been completed, the system will move forward to determine whether the next year to be reconciled requires the ‘subsequent year’ rules or ‘final year’ rules (PAYE96270) to be applied to it.
Cases reconciled underpaid above tolerances
For the year being reconciled, where the result (in isolation) is underpayment above tolerances a check will be made to determine if a PUP is held for the year being reconciled.
Where a PUP is not held, the actual underpayment calculated will be the accepted result for the year and where
- No overpayment of underpayment has been brought into the year the amount concerned will be carried forward into the next year to be reconciled
- An underpayment has been brought forward from a previous year, the underpayment concerned will be added to the amount brought forward and the total underpayment arising will be carried forward into the next year to be reconciled
- An overpayment (including repayment supplement) has been brought forward into the year, the overpayment will be offset against the underpayment and where the result an equals an underpayment or overpayment
- Within tolerance the year and all preceding years will be set to ‘Reconciled - Balanced’ and the result will not be carried forward into the next year to be reconciled
- Outside tolerances the result will be carried forward into the next year to be reconciled
Where a PUP is held for the year and the actual underpayment is more than the PUP, the system will subtract the PUP from the actual underpayment and where the result is
- A difference within the underpayment tolerances (PAYE93075), the PUP will be accepted result for the year and it will be carried forward into the next year to be reconciled
- A difference above the underpayment tolerances (PAYE93075) the actual underpayment arising will be accepted as the result for the year and it will be carried forward into the next year to be reconciled
Where a PUP is held for the year the system will check to see if the actual underpayment is less than the PUP by £10 or more. Where it
- Is, the actual underpayment will be accepted result for the year and it will be carried forward into the next year to be reconciled
- Is not, the PUP will be the accepted result for the year and it will be carried forward into the next year to be reconciled
At this stage, that is after considering the PUP situation for the year the system will determine whether or not an underpayment or overpayment from a previous year needs to be accounted for. If it does and the amount brought forward is an
- Underpayment, the underpayment concerned will be added to the accepted underpayment arising in the year being reviewed and the total of both amounts will be carried forward into the next year to be reconciled
- Overpayment, the amount concerned (including supplement) will be offset against the accepted underpayment arising in the year being reviewed. Where the result of the offset is that the year being reviewed results in an underpayment or overpayment
- Within tolerances, the year will be set to ‘Reconciled - Balanced’ and the result will not be carried forward to the next year to be reconciled
- Outside tolerances, the appropriate result will be carried forward to the next year to be reconciled
Once action on determining the position for the year has been completed, the system will move forward to determine whether the next year to be reconciled requires the ‘subsequent year’ rules or ‘final year’ rules (PAYE96270) to be applied to it.
Cases reconciled overpaid above tolerances
For the year being reconciled, where the result (in isolation) is an overpayment above tolerances a check will be made to determine if a PUP is held for the year being reconciled.
Where a PUP is not held the overpayment concerned (plus supplement) will be carried forward into the next year to be reconciled.
Where a PUP is held, the PUP will be cancelled and the overpayment concerned (plus supplement) will be carried forward into the next year to be reconciled.
At this stage, which is after considering the PUP situation for the year, the system will determine whether an underpayment or overpayment brought forward from a previous year needs to be accounted for. If it does and the result brought forward is an
- Overpayment, the overpayment concerned will be added to the accepted overpayment arising in the year being reviewed and the totalled result will be carried forward into the next year to be reconciled
- Underpayment, the amount concerned will be offset against the accepted overpayment arising in the year being reviewed. Where the result of the offset is that the year being reviewed results in an underpayment or overpayment
- Within tolerances, the year will be set to ‘Reconciled - Balanced’ and the result will not be carried forward to the next year to be reconciled
- Outside tolerances, the appropriate result will be carried forward to the next year to be reconciled
Once action on determining the position for the year has been completed, the system will move forward to determine whether the next year to be reconciled requires the ‘subsequent year’ rules or ‘final year’ rules (PAYE96270) to be applied to it.