Accounting: end of year: migration issues
When the PAYE Service was introduced, end of year information previously recorded on COP migrated to the PAYE Service. Details migrated in respect of how an individual’s liability (for example, underpaid or overpaid) was cleared migrated to the Reconciliation and Accounting functions and in most instances the details shown in the PAYE Service fully reflect those previously held on COP. However, due to circumstances of a particular case or where a year on COP was still ‘open’ at migration, this was not always the case.
When reviewing earlier migrated years you will need to assess the current information held on the PAYE Service in order to get a full picture.
Reconciliation will show the result for each year and the Financial Events Summary screen within Accounting will show the status of underpayments and overpayments. It is important that Coding History is checked in order to compare the amounts collected with those held in Accounting and Reconciliation.
The items below contain further information to help you deal with known Accounting issues. Guidance on areas where Reconciliation is affected by migration issues can be found at PAYE93095. End of year Reconciliation guidance for migrated years is available on the Personal Tax Customer, Product & Process intranet site.
Voluntary payment receipt
Where cases are cleared informally and no calculation is issued there may be a receipt created for a voluntary payment resulting in no matching underpayment migrating to the PAYE Service. The majority of these will be deceased cases. In all cases for migrated years where there is a voluntary payment with no matching underpayment please check Contact History for a COP History Enote to confirm the circumstances around the voluntary payment.
Unable to unallocate voluntary payment
Due to the way information has migrated to NPS from COP the Accounting function screen Unallocate Payment is not available for payments originally allocated on COP. It will not be possible to record any changes in NPS Accounting. Details of any changes should be recorded in Contact History. Any repayments should be done manually by requesting issue of a manual payable order (PO) by completing the new SEES Payable Order Request Form (PORF) and email to your authoriser. The authoriser should not update NPS with the PO number. Update Contact History using SEES paster note ’Voluntary Payment Repaid’ (including amount and PO number).
Revenue loss / remission
Due to incorrect entries on COP there will be cases where details of a Revenue loss / remission of tax will not be displayed on the PAYE Service. However, COP Enotes will show the relevant details and all Enote information will be migrated to the PAYE Service as COP History in Contact History.
Reconciliation from draft calculation
Where a working sheet has been fully completed on COP but the calculation has not been issued, migration incorrectly created a reconciliation result from the draft calculation. The Reconciliation Summary screen will show the year as Balanced - Underpaid however the Financial Events Summary screen correctly shows no entry for the relevant year. In all cases for migrated years, the details shown in the Reconciliation Summary screen may be incorrect. The Financial Events Summary screen must be viewed for the correct position.
Financial events summary screen displays status ‘unknown’
Where prior to migration, an informal calculation has been amended resulting in an over-repayment of tax plus supplement, the amended calculation will claw back the tax paid as a tax office refund. At migration, the PAYE Service incorrectly identified the tax and the supplement as the tax refund instead of only the tax. The system identifies this discrepancy and shows the amount of the supplement on the Financial Events summary with a status of ‘Unknown’. In all cases, for migrated years showing a status of ‘Unknown’ in the Financial Events Summary screen the information is likely to be misleading. You must view the Repayment Details screen to get an accurate picture.
No entry on financial events summary screen
Due to incorrect entries made within COP, amendments have been made to some records after migration. In these cases the Reconciliation Summary screen shows a reconciliation event as cancelled but there is no corresponding financial event showing on the Financial Event summary screen for the year in question.
Repayments made on COP
Due to incorrect entries migrating from COP, amendments have been made to some records to show the correct repayment status of ‘settled’ on the Financial Events Summary screen. The Overpayment Details screen will correctly show a status of ‘settled’ but it will also show the amount as outstanding. The outstanding amount has no impact on Accounting and can be disregarded for these cases.
Misleading details are shown in Repayment Details screen when more than one repayment has been issued for the same year. Look at the ‘total payment’ and not the ‘amount’ entry within Repayment Details screen to see the correct amounts repaid.
Underpayment source description
The underpayment details viewed through Financial Events, displays an underpayment as ‘In Year Repayment’. This does not affect the Accounting position and is a display issue only.
Due to the way SA underpayments were shown on COP, underpayments may show a financial event status of ‘carried forward’ to the year they are picked up for coding. SA underpayments that are not yet coded have migrated to the PAYE Service with an Accounting status of ’Outstanding’. These cases will be picked up at 2010-2011 annual coding.
Incorrect results originating in migrated years
In most instances end of year information has migrated from COP to the PAYE Service correctly. However due to the circumstances of a particular case or where COP was not completed correctly, the end of year information that has migrated to the PAYE Service screens is incorrect.
Amending SA underpayments is covered at PAYE98005.
Any additional amount due will not be included in the CY code; it will (subject to coding rules) be included CY+1.
There are difficulties with some cases around the spreading of an underpayment where 2008-09 has not been reconciled.
The year 2008-09 should be reconciled; this will create an accounting entry that will allow you to spread any resulting underpayment provided it passes normal coding checks.