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HMRC internal manual

PAYE Manual

PAYE Manual: recent changes

Below are details of the amendments that were published on 2 September 2011 (see the update index for all updates).

Only important changes for dissemination to staff are listed in the table below. The content of other pages within this Manual may have required a minor change because of an update to the originating subject(s) listed or to correct spelling mistakes or links, or to change page presentation. You are reminded that any page printed from this Manual is uncontrolled and may not be the latest version. It is recommended you always refer to guidance online.

Page Details of update
PAYE001 (HMRC Intranet only) ‘Business Calendar’ - Updated. Entries for August 2011 removed and entries for August 2012 added.
PAYE056 (HMRC Intranet only) ‘Index of Forms’ - P37 2010 and 2011 versions added and old versions removed. Entry added for P37(SEES) (formerly P37(MAN)) and 2010 and 2011 versions added.
PAYE058 (HMRC Intranet only) ‘Work items’ - Links to WI24, WI142 and WI235 updated.
PAYE10010 ‘Coding allowances and reliefs: age-related allowances’ - Subject updated.
PAYE11035 ‘Codes: how they are used and calculated: P2 special notes’ - In the table the ‘Circumstance’ column has been updated for the ‘P45 YY’ entry.
PAYE12007 ‘Work item 142 - BEN/EXP - Negative benefit amount (Action Guide)’ - Action Guide removed as replaced by SPD.
PAYE12045 ‘Coding deductions and expenses: expenses’ - Under sub heading ‘Abbreviations used in coding’, further entries added to the table and ‘Note’ added.
PAYE13062 ‘Coding: general principles: bankruptcy: cases dealt with in Scottish court (Action Guide)’ - Action Guide updated.
PAYE13063 ‘Coding: general principles: bankruptcy: details of a bankruptcy order are received (Action Guide)’ - Action Guide updated.
PAYE13085 ‘Coding: general principles: estimated income’ - ‘Stage 4’ added to how adjusted net income is calculated.
PAYE13106 ‘Coding: general principles: married couples: date of marriage prior to 5 December 2005: deceased cases (Action Guide)’ - Under sub heading ‘Action to take on surviving spouse’s record’, ‘Note’ at step 10 updated.
PAYE20010 ‘Set up employer record: addresses’ - ‘Note’ added under sub heading ‘Entering an address on an employer record’.
PAYE20015 ‘Set up employer record: agents and employers’ - ‘Note 1’ updated. Under sub heading ‘Online agent authorisation process’, final paragraph about EBS updated.
PAYE20086 ‘Set up employer record: DOME scheme - domestic (simplified deduction scheme) (Action Guide)’ - Bullet at step 3 and step 10 updated to remove the reference to using first class post.
PAYE20135 ‘Set up employer record: P scheme - PAYE employees only’ - Bullet about payments to subcontractors removed.
PAYE20136 ‘Set up employer record: P scheme - PAYE employees only (Action Guide)’ - Under sub heading ‘Set up employer record’, further ‘Note’ added at step 4.
PAYE20175 Set up employer record: trade classes and nature of business’ - Title updated to include ‘and nature of business’. Subject updated.
PAYE21026 ‘Maintain employer record: cessation and dormancy (Action Guide)’ - Action Guide updated.
PAYE21090 ‘Maintain employer record: employer segmentation’ - Text updated under sub heading ‘General’.
PAYE21160 ‘Maintain employer address’ - Under sub heading ‘Entering a new address on an employer record’, further ‘Note’ added under heading ‘Manually entered addresses’.
PAYE21161 ‘Maintain employer address (Action Guide)’ - Action Guide updated under sub heading ‘Initial action’, new steps added and remaining steps re-numbered accordingly.
PAYE21176 ‘Maintain payroll and correspondence details (Action Guide)’ - Action Guide updated.
PAYE21201 ‘Maintain employer record: reimbursements and advances (Action Guide)’ - Removed reference to using first class post at step 3.
PAYE21260 ‘Maintain employer record: working post and BF review’ - Under sub heading ‘Sending post to other Offices’, in the table, ‘Method To Use’ updated for ‘Banking Operations’ entry to read ‘Envopak’ for all bullets.
PAYE27027 ‘Maintain schemes: change scheme type - DOME to P (Action Guide)’ - Action Guide updated.
PAYE27035 ‘Maintain schemes: change scheme type - PSC to XP (Action Guide)’ - Action Guide updated.
PAYE47061 ‘Employer return - overpayments: overpayment notification (Action Guide)’ - Sub heading for step 20 updated to read ‘Checking for other outstanding debts and / or returns’ and text added under heading ‘Other years on BROCS’ (at step 20). At steps 9, 12 and 24 ‘box 23 of the P35’ updated to read ‘’Deductions made from subcontractors box’.
PAYE50015 ‘Employer payments: payments received in processing offices’ - Under sub heading ‘Tax Credit debts’, removed the reference to using first class post.
PAYE50016 ‘Employer payments: payments received in processing offices (Action Guide)’ - At steps 15, 16, 23 and 24, removed the reference to using first class post.
PAYE50910 ‘Employer starter and leaver forms: employer e-file in-year penalties: calculation of a fixed penalty’ - First sub heading updated to remove reference to tax quarters.
PAYE51020 ‘Employer EOY penalties: EOY penalty cycle’ - Removed sub heading and corresponding text for ‘BROCS reminder cycle’.
PAYE53012 ‘Employer return work lists: post capture - 2007-08 onwards (Action Guide)’ - ‘Box 28’ updated to read ‘CIS deductions suffered’ at sub headings for steps 9 and 13 and in steps 2, 9, 10, 11, 12 and 13. Under sub heading ‘P35 return amount is more than that shown on CISR or where the employer has not registered as a subcontractor on CISR’ - ‘Note’ added at step 11 about returning any original PDS or bank statements and following paragraph starting ‘Where PDS are not available…..’ updated. Also at step 11, ‘CISR74050’ updated to read ‘CISR74040’.
PAYE53036 ‘Employer return work lists: filed online capture exception (Action Guide)’ - ‘Box 23’ updated to read ‘Deductions made from subcontractors’ at step 6.
PAYE53046 ‘Employer return work lists: filed online return exceptions (Action Guide)’ - ‘Box 23’ updated to read ‘Deductions made from subcontractors’ at step 6.
PAYE61052 ‘Create employment from customer correspondence’ - Text added to last but one paragraph.
PAYE64011 Maintain employment: edit employment details (Action Guide)’ - Under sub heading ‘Employment ceased in error’, further bullet added to step 6 about removing the date of leaving.
PAYE64061 ‘Work item 235 - EOYR - NI transfer/delete P14 (Action Guide)’ - Action Guide removed as replaced by SPD.
PAYE70245 ‘Specific employments: examining bodies - fees to examiners’ - Under sub heading ‘Table of examining boards, universities and authorised examining bodies’, entry in table for ‘London Qualifications Ltd(k/a Edexcel)’ changed to ‘Pearson Education Ltd (k/a Edexcel)’.
PAYE73015 ‘Simplified deduction schemes: code change’ - Third bullet updated to remove the reference to using first class post.
PAYE73025 ‘Simplified deduction schemes: increase in pay above PAYE threshold’ - Subject updated to remove references to using first class post.
PAYE73026 ‘Simplified deduction schemes: increase in pay above PAYE threshold (Action Guide)’ - Updated to remove references to using first class post at steps 5 and 6.
PAYE73035 ‘Simplified deduction schemes: new employee’ -Subject updated to remove references to using first class post.
PAYE73036 ‘Simplified deduction schemes: new employee (Action Guide)’ -Updated to remove reference to using first class post at step 5.
PAYE73040 ‘Simplified deduction schemes: repayment during year on cumulative basis’ - Subject updated to remove reference to using first class post.
PAYE76070 ‘Pensioners: P46(DWP)’ - ‘Note’ added about not processing the P46(DWP) until the week in which the state pension commences, along with the P161, if received.
PAYE76085 ‘Pensioners: P161’ - Third bullet updated about not processing the P161 until the week in which the state pension commences, along with the P46(DWP), if available.
PAYE77035 ‘Incapacity benefit: form P45(IB)(O)’ - Under sub heading ‘Reassessment cases’, ‘Note’ updated - 15 days updated to read 20 days.
PAYE77036 ‘Incapacity benefit: form P45(IB)(O) (Action Guide)’ - ‘Note’ above the table updated to read 20 days (previously read 15 days).
PAYE77043 ‘Incapacity benefit: form P46(IB): revised award (Action Guide)’ - Steps 3, 5 and 7 updated.
PAYE79028 ‘Targeted review forms: examining form R40 (Action Guide)’ - Under sub heading ‘R85’, R85 and R85 Helpsheet updated to link to current version.
PAYE80036 ‘Review of claims and deductions: PSUBS (Action Guide)’ - Text added to step 1 about using the PSUB Help card.
PAYE91040 ‘Overpayments: nominees’ - Subject updated and new sub headings and corresponding text added.
PAYE93036 ‘End of year reconciliation: tax calculation issues’ - Under sub heading ‘Individual Bankruptcy cases’, text updated.
PAYE93059 ‘Work item 233 - EOYR - NT code held (Action Guide)’ - Under sub heading ‘Review and correct the CY codes’, further bullet added to step 4 about removing the OCCP, FP or PSP as appropriate from IABD.
PAYE94010 ‘Trigger in-year reconciliation’ - Further bullet added to the subject.
PAYE94020 ‘In-year reconciliation: special circumstances’ - First sub heading title updated to ‘Jobseeker’s / Employment Support Allowance received’ and corresponding text updated.
PAYE94025 ‘In-year reconciliation: cessation repayments’ - Text under sub heading ‘Occupational pensioner and ceased secondary income’ updated.
PAYE94060 ‘In-year reconciliation: unemployment repayments’ - Opening paragraphs updated.
PAYE103017 ‘Work item 21 - DOD received - review record (Action Guide)’ - Under sub heading ‘R27 returned’, text added to step 24. OCA Office Address guidance at step 10 under sub heading ‘Next action’ and step 14 under sub heading ‘Action on 12 week B/F’ revised to omit references to local Office addresses.
PAYE103025 ‘Maintain individual details: address’ - ‘Note’ added under sub heading ‘Address history’.
PAYE103045 ‘Maintain individual details: agent details: non CESA agents’ - ‘Note’ added under sub heading ‘Other general post attachments’.
PAYE103050 ‘Work item 24 - designatory data from SA - no SA link (Action Guide)’ - Action Guide removed as replaced by SPD.
PAYE104020 Merge individual records: post automated merge’ - ‘Note’ added to the end of the subject.
PAYE104026 ‘Maintain individual details: manual merge: referring cases (Action Guide)’ - At step 11, text added under bullet ‘For TRN to NINO and TRN to TRN cases’ about where a request for payment is received and you need the merge to be carried out urgently.
PAYE105022 ‘Contact history: specific processes - recording information and actions’ - Text updated under sub heading ‘Full residence ruling’ and heading ‘Relevant work area(s) - Repayments and forms, customer letters. Text updated under sub heading ‘Creating a manual BF’ and heading ‘Relevant work area(s) - All’.
PAYE106014 ‘Re-issue correspondence: issue OCA generated letter or form (Action Guide)’ -OCA Office Address guidance revised under sub heading ‘Change office address’ to reflect change from local Office addresses to PO Boxes.
PAYE130040 ‘IABD: employment benefits’ - Text added immediately below the ‘Section 336’ sub heading about what a Section 336 claim is and the qualifying conditions.
PAYE130050 ‘IABD: expenses’ - Under sub heading ‘Job Expenses’, ‘Note’ updated.
PAYE130066 ‘IABD: state pensions (Action Guide)’ - Under sub heading ‘Commenced in CY-1’, step 15 updated and new step 16 added. Under sub heading ‘Commenced CY-2 or earlier’, step 23 updated and new step 24 added. Under sub heading ‘Exceptional circumstances’, step 32 removed. Steps re-numbered to reflect addition / removal of steps described.