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HMRC internal manual

PAYE Manual

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HM Revenue & Customs
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PAYE Manual: recent changes

Below are details of the amendments that were published on 25 February 2011 (see the update index for all updates).

Section Details of update
   
PAYE056 (HMRC Intranet only) ‘Index of Forms’ - Entries updated as necessary to change ‘Processing Office’ to read ‘PAYE Employer Office’. Entries for P17 and P86 updated. Employer pack contents updated. FOT 1 (2011) and Tax tables G 2011 added.
PAYE057 (HMRC Intranet only) ‘Index of Functions’ - EBS Function ‘View Employees’ updated under heading ‘Function Details’.
PAYE058 (HMRC Intranet only) ‘Index of work items’ - ‘Failure Reason’ column for work items 026, 028 and 182 updated. Work item 034 name updated and ‘Failure Reason’ column updated. Reference to ‘FT’ removed from work items 140 and 426.
PAYE11010 ‘Cases where you should use code NT’ - Further bullet added relating to the TV, film and theatre industry.
PAYE11125 ‘Codes: how they are used and calculated: indicators’ - In the table ‘Notes’ column for ‘No allowances’ updated. Entry for ‘S128’ updated (now ‘S811 ITA 2007’).
PAYE12040 ‘Coding deductions and expenses: other deductions’ - New paragraph concerning IABD in section on state pension / benefit.
PAYE13005 ‘Annual coding’ - In the table the entry for work item 182 updated (column relating to when it is generated).
PAYE13013 ‘Work item 182 - annual coding - code NT carried forward (Action Guide)’ - Text above the table updated as to how this work item is generated.
PAYE13062 ‘Coding: general principles: cases dealt with in Scottish court (Action Guide)’ - ‘Note’ updated at step 2 about if the ‘sequestration’ aspect of the case is being worked in another office.
PAYE13072 Work item 156 - review code - unused allowances (Action Guide)’ - Under sub heading ‘Update the record’, step 3 updated.
PAYE13100 ‘Coding: general principles: higher rate individuals’ - Under sub heading ‘More than one coded source: allocating rates’, new heading and corresponding text added for ‘Primary source tax codes with both an ARB restriction and other earnings calculated’.
PAYE13120 ‘Penal indicator’ - Opening paragraph updated.
PAYE13155 ‘Work item 426 - SA auto coding - primary source code is BR / 0T / NT / D0 (Action Guide)’ - Title updated to remove ‘FT’ from it.
PAYE20001 ‘Set up employer record: introduction’ - Subject updated.
PAYE20020 ‘Set up employer record: checks prior to setting up’ - ‘Responsible processing office’ updated to read ‘PAYE Employer Office’ as appropriate. Text under sub heading ‘Responsibilities’ updated.
PAYE20060 ‘Set up employer record: profit related pay’ - Subject removed.
PAYE20075 ‘Schemes linked to new employer records’ - Text updated under sub heading ‘What is a linked scheme?’.
PAYE20086 ‘DOME scheme - domestic (simplified deduction scheme) (Action Guide)’ - ‘Processing Office’ updated to read ‘PAYE Employer Office’ as appropriate.
PAYE20106 ‘ELECT scheme - electoral payments (Action Guide)’ - ‘Processing Office’ updated to read ‘PAYE Employer Office’ as appropriate.
PAYE20116 ‘EXAM scheme - examination fees (Action Guide)’ - ‘Processing Office’ updated to read ‘PAYE Employer Office’ as appropriate.
PAYE20121 ‘NI scheme - national insurance only (Action Guide)’ - ‘Processing Office’ updated to read ‘PAYE Employer Office’ as appropriate.
PAYE20125 ‘NORPRO scheme’ - Subject updated.
PAYE20131 ‘OCPN scheme - occupational pension (Action Guide)’ - ‘Processing Office’ updated to read ‘PAYE Employer Office’ as appropriate.
PAYE20136 ‘P scheme - PAYE employees only (Action Guide)’ - ‘Processing Office’ updated to read ‘PAYE Employer Office’ as appropriate.
PAYE20141 ‘PSC scheme - employees and subcontractors (Action Guide)’ - ‘Processing Office’ updated to read ‘PAYE Employer Office’ as appropriate.
PAYE20161 ‘TRONC scheme - scheme set up for distribution of tips and gratuities (Action Guide)’ - ‘Processing Office’ updated to read ‘PAYE Employer Office’ as appropriate.
PAYE20166 ‘XP scheme - contractor only (no employees) (Action Guide)’ - ‘Processing Office’ updated to read ‘PAYE Employer Office’ as appropriate.
PAYE20170 ‘Setting up new employer records’ - Subject updated.
PAYE20171 ‘Setting up new employer records (Action Guide)’ - Action Guide and links within it updated.
PAYE21016 ‘Cancellation of an employer record (Action Guide)’ - Action Guide updated.
PAYE21026 ‘Maintain employer record: cessation and dormancy (Action Guide)’ - Step 1 updated.
PAYE21031 ‘Cessation of an employer record (Action Guide)’ - Steps 3, 11, 14 and 18 updated.
PAYE21095 ‘Employer segmentation - appeals and claims’ - Under sub heading ‘Appeals and claims against the statutory notice’, first bullet updated.
PAYE21145 ‘Linked schemes’ - Text updated under sub heading ‘What is a linked scheme?’.
PAYE21160 ‘Maintain employer address’ - Under sub heading ‘Types of address’, text added above the table. Sub heading ‘Changes of address outside responsible office’ and corresponding text removed.
PAYE21170 ‘Maintain employer name’ - Text under sub heading ‘Change in ownership’ updated.
PAYE21175 ‘Maintain payroll and correspondence details’ - Under sub heading ‘Types of addresses’, text added above the table. Text added under sub heading ‘RLS and DLO addresses’. Sub heading and corresponding text removed for ‘Changes of address outside responsible office’.
PAYE21220 ‘RLS correspondence’ - Text added under sub heading ‘Amending an address or RLS indicator’
PAYE21221 ‘RLS correspondence (Action Guide)’ - Step 1 updated.
PAYE21241 ‘Verification of deductions under CIS - up to 2007 (Action Guide)’ - Action Guide updated.
PAYE21250 ‘Maintain employer record: view employees’ - Subject updated.
PAYE23036 ‘School funding arrangements (Action Guide)’ - Action Guide updated.
PAYE25001 ‘Employer mailings: introduction’ - Subject updated.
PAYE25020 ‘Budget employer pack / letter’ - Title updated to include ‘letter’. Text added under sub heading ‘Background’. Sub headings / text updated as necessary to include the ‘letters’. ‘Processing Office’ updated to read ‘PAYE Employer Office’.
PAYE25025 ‘Employer mailings - responsibilities’ - Heading of final column in table updated. ‘NORPRO’ entry updated in final column about responsibility.
PAYE25030 ‘Employer pack / letter issue’ - Title and subject updated.
PAYE25031 ‘Employer pack / letter issue (Action Guide)’ - Title and steps 3 and 4 updated.
PAYE25035 ‘Employer packs / letters not required’ - Title and subject updated to include employer letter(s).
PAYE25036 ‘Employer packs / letters not required (Action Guide)’ - Title and Action Guide updated to include employer letter(s).
PAYE25040 ‘Employer bulletin’ - Subject updated.
PAYE25045 ‘Employer mailings: employer orderline’ - Under sub heading ‘Employer Orderline - Responsibilities’, ‘responsible office’ updated to read ‘PAYE Employer Office’. Text updated under sub heading ‘Employer Orderline - Forms available’.
PAYE25050 ‘New employer starter pack / letter’ - Title and subject updated.
PAYE25055 ‘Employer mailings: prospective employer pack issue’ - Text added about the contents of the pack.
PAYE27033 ‘Maintain schemes: change scheme type - P to XP (Action Guide)’ - Under sub heading ‘Scheme changed during previous year’, new steps 11 and 13 added, step 12 updated and remaining steps re-numbered accordingly.
PAYE29001 ‘Monthly control lists: introduction’ - ‘Processing Office’ updated to read ‘PAYE Employer Office’.
PAYE29010 ‘Monthly control lists: all addresses RLS’ - ‘Processing Office’ updated to read ‘PAYE Employer Office’.
PAYE29011 ‘Monthly control lists: all addresses RLS (Action Guide)’ - Under sub heading ‘Initial action’, step 2 updated.
PAYE29015 ‘Monthly control lists: all other cases working with the district’ - ‘Processing Office’ updated to read ‘PAYE Employer Office’.
PAYE29020 ‘Monthly control lists: cessation ‘Q’ (domestic) cases not cleared’ - ‘Processing Office’ updated to read ‘PAYE Employer Office’.
PAYE29025 ‘Monthly control lists: end of year overpayments not cleared’ - ‘Processing Office’ updated to read ‘PAYE Employer Office’.
PAYE29030 ‘Monthly control lists: forms P35 received for which no P228 issued’ - ‘Processing Office’ updated to read ‘PAYE Employer Office’.
PAYE31001 ‘Employer record work lists: introduction’ - Under sub heading ‘Work List types’, bullet for ‘Employer Address RLS’ removed.
PAYE31010 ‘Employer record work lists: EDI cess / canc exceptions’ - Subject updated to say ‘PAYE Employer Office’ instead of ‘Processing Office’.
PAYE31011 ‘Employer record work lists: EDI cess / canc exceptions (Action Guide)’ - Action Guide updated to say ‘PAYE Employer Office’ instead of ‘Processing Office’.
PAYE31015 ‘Employer record work lists: employer address RLS’ - Subject removed as this work list is now obsolete.
PAYE31016 ‘Employer record work lists: employer address RLS (Action Guide)’ - Action Guide removed as this work item is now obsolete.
PAYE31021 ‘Employer record work lists: new employer (Action Guide)’ - Step 2 under sub heading ‘Initial action’ removed and remaining steps re-numbered accordingly. Under sub heading ‘Scheme type’, at step 6, ‘NESI’ changed to read ‘New Employer Helpline’.
PAYE31025 ‘Employer record work lists: PIN name and address return’ - Subject updated to say ‘PAYE Employer Office’ instead of ‘Processing Office’.
PAYE43031 ‘Nil returns - 2005 onwards (Action Guide)’ - Under sub heading ‘Penalty review’, step 17 updated.
PAYE48130 ‘Reminding actions for returns’ - Sub headings ‘Types of reminder’ and ‘Inhibition of reminders’ removed. Text updated under sub heading ‘Background’.
PAYE52035 ‘Form P35 (Offshore Protocol)’ - Subject updated.
PAYE60036 ‘Work item 49 - temporary record created - trace / maintain / merge (Action Guide)’ - Step 2 updated with further point of reference under sub heading ‘NINO record is traced’.
PAYE61219 ‘Work item 312 - post departure EXPAT P14 - live SA record (Action Guide)’ - Title changed (previously called ‘Work item 312 - post departure EXPAT P14 - taxpayer is SA (Action Guide)’). Action Guide re-written.
PAYE61220 ‘Work item 313 - post departure EXPAT P14 - no live SA record (Action Guide)’ - Title changed (previously called ‘Work item 313 - post departure EXPAT P14 - taxpayer is not SA (Action Guide)’). Action Guide re-written.
PAYE62060 ‘Work item 50 - update to specialist record - maintain’ - Subject updated.
PAYE64055 ‘Work item 222 - EXPAT EMPT clerically created’ - ‘CPTT user’ updated to read ‘Expat user’.
PAYE64056 ‘Work item 222 - EXPAT EMPT clerically created (Action Guide)’ - Under sub heading ‘Close the work item’, at step 7, ‘Update the CPTT database’ updated to read ‘Update the Expat database’.
PAYE70245 ‘Specific employments: examining bodies - fees to examiners’ - New entry added to the table for ‘Chartered Institute of Marketing’.
PAYE72045 ‘Payments for PAYE purposes: occupational retirement benefit schemes’ - Text added under sub heading ‘Pension for unmarried minor child’ about if the child is below age 16.
PAYE76020 ‘Pensioners: changes to rate of benefit after record uprated’ - cross reference inserted to use when updating a code
PAYE76085 ‘Pensioners: P161’ - eighth important point added.
PAYE76089 ‘P161 (Action Guide)’ - New opening text added and under sub heading ‘State pension age not yet reached’, new steps 29 - 33 added for ‘Occupational pension and employment and support allowance’ and other steps re-numbered accordingly.
PAYE78051 ‘Receipt of form P181 (Action Guide)’ - Text at step 7, under sub heading ‘Benefit is for CY’, updated.
PAYE79015 ‘Targeted review forms: business by telephone and entries on form P810’ - Subject updated.
PAYE79060 ‘Logging receipt of review forms’ - ‘Note 3’ updated about the issue of the R40 and 575T not setting the penal indicator from December 2010.
PAYE81005 ‘Double taxation claims submitted by non resident individuals: responsible offices’ - In the table, entries relating to ‘Responsible Office’ and ‘Address/location’ updated for ‘Individual’ where the ‘Type of income claimed’ is ‘Pension/interest/royalties with PAYE income or SA record’.
PAYE81015 ‘Double taxation claims submitted by non resident individuals: certification by an overseas tax authority’ - New sub headings and corresponding text added for ‘Cayman Islands’, ‘Qatar’ and ‘Saudi Arabia’. Entry for ‘Israel’ updated.
PAYE81050 ‘Double taxation claims submitted by non resident individuals: repayments in self assessment (Action Guide)’ - Under sub heading ‘Amending CY-1’ and heading ‘Amend SA return’, steps 16 - 18 updated.
PAYE81060 ‘Double taxation claims submitted by non resident individuals: country specific aspects’ - New sub headings and corresponding text added for ‘Qatar’ and ‘Saudi Arabia’. Entry for ‘Israel’ updated.
PAYE81540 ‘International employments: employment income position’ - Subject updated.
PAYE81570 ‘International employments: arrival in the UK’ - Title changed (previously ‘issue form P86’) and subject updated.
PAYE81575 ‘International employments: action on receipt of completed form P86 (now obsolete)’ - Title and subject updated.
PAYE81580 ‘International employments: can employee be treated as resident? - action for year of arrival’ - Subject updated.
PAYE81585 ‘International employments: short term visitors treated as provisionally not resident’ - Text updated under sub headings ‘Visiting teachers’, ‘Employee was resident in the Irish Republic’ and ‘Employee lives in the Irish Republic’.
PAYE81590 ‘International employments: coding employees who return to UK after working abroad’ - Subject updated.
PAYE81605 ‘International employments: employee working at UK branch or representative office of overseas employer’ - Text updated under heading ‘The employee or trainee is sent to an existing UK branch or representative office’.
PAYE81645 ‘International employments: issuing form P85’ - Title updated to exclude p85(S) and subject updated.
PAYE81650 ‘International employments: action on receipt of completed form P85’ - Title updated to exclude p85(S) and subject updated.
PAYE81655 ‘International employments: repayments’ - Subject updated.
PAYE81665 ‘International employments: employee treated as not resident and not ordinarily resident in the UK’ - Subject updated.
PAYE91035 ‘Making a repayment’ - Text updated under sub headings ‘Foreign workers’ and ‘Expatriate cases’.
PAYE91041 ‘Overpayments: nominees (Action Guide)’ - Under sub heading ‘Receipt of a nomination / assignment’, text added to step 5 about when the nominee is a bank.
PAYE91062 ‘Prepare and issue a manual repayment’ - Second to the last bullet updated to include ‘P528 claims’.
PAYE91065 ‘Repayment claim forms and requests’ - Bullet relating to the P85 updated about referring to the ‘Residence, Domicile and remittance Manual’ for further information.
PAYE92035 ‘Posting P14 to individual record: overview of responsibilities at the end of the tax year’ - Text updated under sub heading ‘Debt Management offices’.
PAYE92060 ‘Posting P14 to individual record: revision of employer’s returns’ - Text updated under sub heading ‘Overview of preparing P35 / P14 returns’.
PAYE92066 ‘Posting P14 to individual record: under-deductions - action required in service teams (Action Guide)’ - Steps 1, 3, 8, 9 and 10 updated.
PAYE93026 ‘Work item 123 - SBA indicator held - no SA indicator set (Action Guide)’ - At steps 4 and 6, CPTT updated to read Expat.
PAYE94025 ‘Cessation repayments’ - Bullet about ‘final cessation of employment’ updated under list of when you can repay during the year of deduction. Text updated under sub heading ‘Individual is a non-resident’.
PAYE98020 ‘Underpayment spreading’ - Text added about the underpayment having to have passed automatic coding checks for the whole amount to be coded in one year and have a status of ‘code’ in Accounting.
PAYE98021 ‘Underpayment spreading (Action Guide)’ - Further bullet added above the table about when you cannot spread collection of underpayments through coding.
PAYE103017 ‘Work item 21 - DOD received - review record (Action Guide)’ - Steps 1, 24 and 27 updated. At step 26, ‘Notes a and b’ updated. ‘Note’ added to step 31.
PAYE103087 ‘Work item 26 - specialist business area indicator held - name changed (Action Guide)’ - Action Guide updated.
PAYE103089 ‘Work item 34 - Residency CRT indicator held - country changed (Action Guide)’ - Title updated. Step 2 updated. Steps 12 - 14 under sub heading ‘Country changed from overseas to UK’, heading ‘Non SA case and UK address but no evidence of permanent return to the UK’ removed and remaining steps re-numbered accordingly.
PAYE103095 ‘Work item 252 - PAYE Service/Frameworks - confidence check exception (Action Guide)’ - Text added above the table about the failure reason for work item 252. Action Guide updated.
PAYE104026 ‘Maintain individual details: manual merge: referring cases (Action Guide)’ - Final bullet of step 11, about referring the case in ‘TRN to NINO and TRN to TRN cases’ updated.
PAYE104031 ‘Manual merge: identify individual (Action Guide)’ - Under sub heading ‘Establish the records are for the same person’, final bullet at step 2 updated about checking if the dates of birth are verified.
PAYE104045 ‘Work item 248 - automatic merge failure - adult registration with PAYE details held (Action Guide)’ - Text added above the table about work item 248 also being created where a NINO to NINO merge is required.
PAYE105001 ‘Contact history: introduction’ - Subject rewritten.
PAYE105010 ‘Contact history: automatic creation by NPS’ - Minor changes to text.
PAYE105015 ‘Contact history: NPS prompts you to create note’ - Subject rewritten.
PAYE105016 ‘Contact history: Manual creation by you’ (Action Guide) - Notes a - d added.
PAYE105017 ‘Contact history: Telephone and correspondence - core principles’ - New subject.
PAYE105018 ‘Contact history: Telephone and correspondence - recoding information and actions (Action Guide)’ - New Action Guide.
PAYE105020 ‘Contact history: work management item - core principles’ - Subject rewritten.
PAYE105021 ‘Contact history: work management item - recording information and actions (Action Guide)’ - New Action Guide.
PAYE105022 ‘Contact history: specific processes - recording information and actions’ - New subject.
PAYE105024 ‘Contact history: abbreviations’ - New subject.
PAYE105025 ‘Contact history: multiple updates’ - Subject deleted. Information now covered within new subjects.
PAYE105026 ‘Contact history: district records’ - New subject.
PAYE110011 ‘Creation of a work item - duplicate, merge and update’ - In the table, the name of work item 140 updated to exclude ‘FT’.
PAYE120051 ‘Work item 231 - form P14 - no trace account of EXPAT case (Action Guide)’ - At steps 4 and 8 bullets updated to read ‘Update the Expat database’ (previously read ‘Update the CPTT database’).
PAYE130066 ‘IABD: state pensions (Action Guide)’ - Under sub heading ‘Commenced in CY-1 or earlier’, step 13 updated and ‘Note’ added. Text added under sub heading ‘Exceptional circumstances’ and above step 20.
PAYE130067 ‘IABD: amendments and updates to state pension’ - New subject