Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

PAYE Manual

From
HM Revenue & Customs
Updated
, see all updates

PAYE Manual: recent changes

Below are details of the amendments that were published on 27 July 2012 (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
   

Left bar content

PAYE001 (HMRC Intranet only) ‘Business Calendar’ - Entries for June 2012 removed.
   
PAYE056 (HMRC Intranet only) ‘Index of forms’ - P242(2012) pdf added.
PAYE058 (HMRC Intranet only) ‘Index of work items’ - The links for work items 251 and 252 have been updated.

Coding

PAYE10045 ‘Coding allowances and reliefs: enterprise investment scheme’ - How to calculate coding allowance for EIS relief updated.
   
PAYE11035 ‘Codes: how they are used and calculated: P2 special notes’ - New special notes added.
PAYE11040 ‘Codes: how they are used and calculated: P2 standard notes’ - Table updated with the two advisory notes if customer approaching state pension age.
PAYE12030 ‘Coding deductions and expenses: automatic process to update codes for expenses’ - Updated to explain process is obsolete.
PAYE12031 ‘Coding deductions and expenses: automatic codes for expenses: arrangements (Action Guide)’ - Deleted as obsolete.
PAYE13150 ‘Coding: general principles: SA automatic coding from tax return’ - Note added under sub-heading ‘Non PAYE income’.
PAYE13151 ‘Coding: general principles: work item 421 - SA auto coding - married couple’s allowance discrepancy (Action Guide)’ - Note added at step 3.
PAYE13152 ‘Coding: general principles: work item 423 - SA auto coding - manual code indicator set (Action Guide)’ - Note added at step 2.
PAYE13153 ‘Coding: general principles: work item 424 - SA auto coding - manual P2 / P2X necessary (Action Guide)’ - Steps 2 and 3 updated.
PAYE13154 ‘Coding: general principles: work item 425 - SA auto coding - TEBEN indicator set (Action Guide)’ - Note added at step 4.

Employer records

PAYE30046 ‘Movement of an employer record: successions (Action Guide)’ - Under sub heading ‘Clerical action’, step 13 telling you to inform DMB removed.
   
PAYE31046 ‘Employer record work lists: employer record review (Action Guide)’ - Under sub heading ‘Nil record for 2 years or more or employer record set up in current year’, at step 2, first bullet updated (‘step 36’ changed to read ‘step 34’).

Employer returns

PAYE40031 ‘Employer return - quality checks: form P37 and / or cards P12 - 2005 onwards (Action Guide) - Step 12 updated.
   
PAYE42025 ‘Capture employer return - up to 2004: NIL returns - up to 2004’ - To add that employers can use an online structured email form to tell us that they do not have to make a return.
PAYE43021 ‘Capture employer return - 2005 onwards: checklist and declaration on P35 - 2005 onwards (Action Guide)’ - To add at step 17 that form P39 can be obtained via SEES.
PAYE46021 ‘Employer return post capture: checklist and declaration on P35 and P35MT - up to 2004 (Action Guide)’ - To add at step 17 that form P39 can be obtained via SEES.
PAYE47011 ‘Employer return - overpayments: authorising officer’s guide (Action Guide)’ - Under sub heading ‘Authorising overpayments using a form P565’, ‘Note’ at step 10 updated (‘go to step 11’ changed to read ‘go to step 12’).
PAYE47070 ‘Employer return - overpayments: Bona Vacantia and dissolved limited companies’ - Under sub heading ‘Bona Vacantia and dissolved companies’, second paragraph updated.
PAYE51015 ‘Employer EOY penalties: ECS penalty reference numbers’ - To add that ‘N’ in the penalty reference number denotes that the penalty is for failing to file online.
PAYE51030 ‘Employer EOY penalties: manually inhibiting penalties’ - To add that further details on the role of the Penalty Authorised Officer is available in the ECS First User Guide on the PT P&P Guidance Gateway.

P11D processing

PAYE57265 ‘Processing and retrieving forms P11D: updating a batch’ - Final paragraph updated.
   
PAYE57340 ‘Processing and retrieving forms P11D: work items’ - Subject updated.
PAYE57550 ‘Management of workflow management tool: capturing rejected forms P11D from returned batches’ - Subject updated.
PAYE57901 ‘Reminders for outstanding forms P11D: introduction’ - Subject updated.
PAYE58600 to PAYE58601 ‘ECS first user guide (fug)’ - New section.

Employment maintenance

PAYE61211 ‘Create employment: work item 251 - P14 creates pension/first PAYE interest (Action Guide)’ - Action Guide removed as replaced with SPD WI251.
   

PAYE operation

PAYE70023 ‘Aspects of PAYE operation - employer: payment of arrears of pay for closed tax years’ - Links inserted to SPD 7f.
   
PAYE76030 ‘Pensioners: DWP uprating service of state pensions’ - Updated as a result of the Automation & Rationalisation of State Retirement Pension data sharing project.
PAYE76070 ‘Pensioners: notification of state pension’ - Subject title changed (previously P46(DWP)). Updated as a result of the Automation & Rationalisation of State Retirement Pension data sharing project.
PAYE76075 ‘Pensioners: bereavement benefits - P46(DWP) details’ - Updated as a result of the Automation & Rationalisation of State Retirement Pension data sharing project.
PAYE76085 ‘Pensioners: P161’ - Updated as a result of the Automation & Rationalisation of State Retirement Pension data sharing project.
PAYE76086 ‘Pensioners: coding of state pension / benefits in the first year’ - Updated as a result of the Automation & Rationalisation of State Retirement Pension data sharing project.
PAYE76095 ‘Pensioners: P161 and P161(W): automatic issue’ - Updated as a result of the Automation & Rationalisation of State Retirement Pension data sharing project.
PAYE76100 ‘Pensioners: P173’ - Updated to tell you when to use form P173.
PAYE76120 ‘Pensioners: pension paid to dependant of former employee’ - Actions taken by payer updated.
PAYE76125 ‘Pensioners: deferred state pension’ - Updated as a result of the Automation & Rationalisation of State Retirement Pension data sharing project.
PAYE76140 ‘Pensioners: rejection of forms P46(DWP)(Slip) and P173 by DWP’ - Updated to reflect forms only relevant in bereavement cases.
PAYE82002 ‘International employments: EP appendix 6: modified PAYE in tax equalisation cases’ - Appendix agreement revised to reflect the introduction of Real Time Information (RTI).
PAYE82003 ‘International employments: EP appendix 7a: modified class 1 and class 1a national insurance contributions (NICs) for expatriate employees subject to an EP appendix 6 agreement’ - Appendix agreement revised to reflect the introduction of Real Time Information (RTI).
PAYE82004 ‘International employments: EP appendix 7b: modified class 1 national insurance contributions (NICs) for employees assigned from the United Kingdom (UK) to work overseas’ - Appendix agreement revised to reflect the introduction of Real Time Information (RTI).

Reconcile individual

PAYE90025 ‘Underpayments: PAYE underpayments’ - Link inserted to SPD 8.
   
PAYE90026 ‘Underpayments: repaying and reallocating voluntary direct payments (Action Guide)’ - Action Guide removed as replaced with SPD 8.
PAYE90030 ‘Underpayments: revenue loss - remission of tax’ - Link inserted to SPD 65.
PAYE90031 ‘Underpayments: revenue loss - remission of tax (Action Guide)’ - Action Guide removed as replaced with SPD 65.
PAYE93091 ‘End of year reconciliation: arrears of pay or pension’ - Link inserted to SPD 7f.
PAYE93092 ‘End of year reconciliation: arrears of pay or pension (Action Guide)’ - Action Guide removed as replaced with SPD 7f.
PAYE96250 ‘Reconciling CY-6 to CY-2: reconciling multiple years - reconciling years including CY-6 to CY-5’ - To state that from April 2012, tax calculations for CY-6 and CY-5 should not be issued (together with exceptions).

Individual records

PAYE103095 ‘Work item 252 - PAYE Service/Frameworks - confidence check exception (Action Guide)’ - Action Guide removed as replaced with SPD W1252 (AA).
   
PAYE105022 ‘Contact history: specific processes - recording information and actions’ - To state that the note on a residence ruling must include whether Personal Allowances are due or are not due rather than the amount.

PAYE Service income, allowances, benefits and deductions

PAYE130025 ‘IABD: allowances’ - Note updated under sub-heading Enterprise Investment Scheme.
   
PAYE130040 ‘IABD: employment benefits’ - Text updated under sub-heading S336.