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 6 April 2014 (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 (Available to internal users only) ‘Business Calendar’ - Updated. Entries for February and March 2014 removed and entries for February and March 2015 added.
   
PAYE055 ‘Glossary of terms’ - The entry for ‘Statutory Sick Pay (SSP)’ has been updated.
PAYE056 (Available to internal users only) ‘Index of Forms’:

The entries for ‘E11’, ‘E12’, ‘E13’ and ‘E13(RTI)’ have been removed.

A 2014 version of the ‘FOT 1’ has been added and the 2010 version has been removed.

A 2014 version of the ‘P9X’ has replaced the 2013 version.

A 2014 version of the ‘SL3’ has been added.

For ‘Tax Tables G’, ‘Tax Table - Manual Method’ and ‘Tax Table - Calculator Method’, the 2014 versions have been added and the 2009 and 2010 versions removed.    
  PAYE058 (Available to internal users only) ‘Index of Work Items’ - A new entry has been added for work item 447.
 

Background

PAYE5011 ‘Real time information (RTI): new employers joining RTI from November 2012’ - The subject has been updated.
   
PAYE5020 ‘Real time information (RTI): submission filing methods’ - In the second paragraph, ‘2013’ has been changed to read ‘2014’.
PAYE5025 ‘Real time information (RTI): submission types’ - The subject has been updated.
PAYE5035 ‘Real time information (RTI): penalties’ - The subject has been updated.
PAYE5055 ‘Real time information (RTI): generic notification service (GNS)’ - The subject has been updated.
PAYE5060 ‘Real time information (RTI): monthly filing frequency’ - The subject has been updated.
PAYE5065 ‘Real time information (RTI): penalty and appeals service (PAS)’ - This is a new subject.

Coding

PAYE11010 ‘Codes: how they are used and calculated: cases where you should use code NT’ - Under the sub heading ‘Bankruptcy’, the text has been updated.
   
PAYE11020 ‘Codes: how they are used and calculated: P2 automatic notes’ - In the table, the two entries for ‘New code higher than last operated code…………’ have been updated. The entry for ‘If Penal Coding’ has been removed.
PAYE11120 ‘Codes: how they are used and calculated: issuing and amending a tax code’ - Under the sub heading ‘Process to issue a tax code’, the paragraph relating to domestic schemes has been removed.
PAYE11130 ‘Codes: how they are used and calculated: viewing tax code history’ - This subject has been updated.
PAYE13100 ‘Coding: general principles: higher rate individuals’ - The opening paragraph of the subject has been updated. The sub heading and corresponding text for ‘The higher rate indicator’ has been removed.
PAYE13105 ‘Coding: general principles: married couples: date of marriage prior to 5 December 2005’ - Under sub heading ‘Death of either spouse’, the text has been updated.
PAYE13110 ‘Coding: general principles: married couples and civil partners: date of marriage or civil partnership on or after 5 December 2005’ - The text prior to the list of sub headings has been updated. The sub heading and corresponding text for ‘Indicators present when surplus allowances transferred’ has been removed. Under sub heading ‘Death of either spouse or civil partner’, the text has been updated.
PAYE13125 ‘Coding: general principles: personal and domestic employees’ - The subject has been updated.
PAYE13126 ‘Coding: general principles: personal and domestic employees (Action Guide)’ - This Action Guide has been removed.
PAYE14010 ‘Adjustments to collect tax: coding out outstanding debts’ - In the text prior to the sub headings, the DMB contact details have been updated.

Employer records

PAYE20035 ‘Set up employer record: free of tax system’ - Under sub heading ‘Advising the employer’, the text has been updated.
   
PAYE20085 ‘Set up employer record: DOME scheme - domestic (simplified deduction scheme)’ - Change of text in the paragraph immediately before the first sub heading.
PAYE20091 ‘Set up employer record: DCNI scheme - direct collection (employee only NIC) (Action Guide)’ - At step 3 ‘BROCS’ has been changed to read ‘ETMP’.
PAYE20096 ‘Set up employer record: DPGEN scheme - direct payment (tax only) (Action Guide)’ - Under sub heading ‘Set up employer record’, in the ‘Note’ after step 4 ‘BROCS’ has been changed to read ‘ETMP’.
PAYE20101 ‘Set up employer record: DPNI scheme - direct payment (tax and NIC) (Action Guide)’ - Under sub heading ‘Set up employer record’, in the ‘Note’ after step 4 ‘BROCS’ has been changed to read ‘ETMP’.
PAYE20170 ‘Set up employer record: setting up new employer records’ - The text prior to the first sub heading has been updated. The sub heading ‘EBS notes and WAMs’ has been updated to read ‘EBS notes and eForms’ and the corresponding text has been updated.
PAYE20171 ‘Set up employer record: setting up new employer records (Action Guide)’ - At steps 6, 13 and 19 ‘WAM’ has been updated to read ‘eForm’.
PAYE21015 ‘Maintain employer record: cancellation of an employer record’ - Under sub heading ‘Automated cancellation of an employer record’, text has been added. Under sub heading ‘Linked employees’, a further bullet has been added and the text updated.
PAYE21021 ‘Maintain employer record: cancelled one year only (COYO) - up to 2007 (Action Guide)’ - Under sub heading ‘Final review’, at step 30, ‘WAM’ has been updated to read ‘eForm’.
PAYE21022 ‘Maintain employer record: cancelled one year only (COYO) - 2008 onwards (Action Guide)’ - Under sub heading ‘Final review’, at step 24, ‘WAM’ has been updated to read ‘eForm’.
PAYE21095 ‘Maintain employer record: employer segmentation - appeals and claims’ - The subject has been updated.
PAYE21151 ‘Maintain employer record: lost or destroyed records (Action Guide)’ - Under sub heading ‘Records cannot be reconstructed’, step 5 has been updated.
PAYE21175 ‘Maintain employer record: maintain payroll and correspondence details’ - Under sub heading ‘RLS and DLO addresses’, ‘WAM’ has been updated to read ‘eForm’.
PAYE21206 ‘Maintain employer record: re-opening an employer record (Action Guide)’ - At step 2 and 3 ‘WAM’ has been updated to read ‘eForm’.
PAYE21216 ‘Maintain employer record: re-starting an employer record (Action Guide)’ - At step 7 ‘WAM’ has been updated to read ‘eForm’.
PAYE21220 ‘Maintain employer record: RLS correspondence’ - Under sub heading ‘Amending an address or RLS indicator’ ‘WAM’ has been updated to read ‘eForm’.
PAYE23030 ‘Employer types: local religious centres (LRCS)’ - Under the sub heading ‘Text version’, the text has been updated at number ‘1’.
PAYE25031 ‘Employer mailings: employer pack / letter issue (Action Guide)’ - Under sub heading ‘Other cases’, at step 9, the telephone number has been updated.
PAYE27010 ‘Maintain schemes: maintain DOME schemes’ - A ‘Note’ has been added at the start of the subject.
PAYE27015 ‘Maintain schemes: maintain DPGEN, DPNI and DCNI schemes’ - A ‘Note’ has been added at the start of the subject.
PAYE27016 ‘Maintain schemes: maintain DPGEN, DPNI and DCNI schemes (Action Guide)’ - A ‘Note’ has been added at the start of the Action Guide.
PAYE27032 ‘Maintain schemes: change scheme type - P to PSC (Action Guide)’ - Under sub heading ‘Clerical action’, at step 7, ‘WAM’ updated to read ‘eForm’.
PAYE27033 ‘Maintain schemes: change scheme type - P to XP (Action Guide)’ - At steps 10 and 22, ‘WAM’ updated to read ‘eForm’.
PAYE27034 ‘Maintain schemes: change scheme type - PSC to P (Action Guide)’ - At steps 5 and 11, ‘WAM’ updated to read ‘eForm’.
PAYE27036 ‘Maintain schemes: change scheme type - XP to P (Action Guide)’ - At steps 8, 17 and 25, ‘WAM’ updated to read ‘eForm’.
PAYE31020 ‘Employer record work lists: new employer’ - In the second paragraph ‘WAM’ has been updated to read ‘eForm’.
PAYE31056 ‘Employer record work lists: domestic ceased (Action Guide)’ - A ‘Note’ has been added at the beginning of the Action Guide.

Employer returns

PAYE43001 ‘Capture employer return - 2005 onwards: introduction’ - New sub heading and corresponding text added for ‘Capturing P35 charge on ETMP’.
   
PAYE43010 ‘Capture employer return - 2005 onwards: capturing annual returns - 2005 onwards’ - New sub heading and corresponding text added for ‘Capturing P35 charge on ETMP’.
PAYE43012 ‘Capture employer return - 2005 onwards: capturing return - 2005 onwards (Action Guide)’ - New sub heading and corresponding text added for ‘Capturing P35 charge on ETMP’ below the table.
PAYE43014 ‘Capture employer return - 2005 onwards: capture multiple returns - 2005 onwards (Action Guide)’ - A new ‘Note’ (number 5) has been added at the start.
PAYE43026 ‘Capture employer return - 2005 onwards: linking employer returns - 2005 onwards (Action Guide)’ - Under sub heading ‘The record receipt date is not displayed’, at step 6, a further bullet has been added.
PAYE43030 ‘Capture employer return - 2005 onwards: nil returns - 2005 onwards’ - New sub heading and corresponding text added for ‘Capturing P35 charge on ETMP’.
PAYE43031 ‘Capture employer return - 2005 onwards: nil returns - 2005 onwards (Action Guide)’ - Under sub heading ‘Penalty review’, at step 17, a further ‘Note’ has been added.
PAYE43200 - PAYE43210 ‘Capture P35 employer return on ETMP - 2013 onwards’ - This is a new section.
PAYE44030 ‘Electronic employer returns: PAYE online for employers - internet’ - Under sub heading ‘DOME schemes’, a ‘Note’ has been added at the beginning.
PAYE46105 Employer return post capture: tax table check’ - A ‘Note’ has been added at the beginning of the subject.
PAYE46106 Employer return post capture: tax table check (Action Guide)’ - A ‘Note’ has been added at the beginning of the Action Guide.
PAYE47061 ‘Employer return - overpayments: overpayment notification (Action Guide)’ - At steps 7 and 20, ‘’WAM’ has been updated to read ‘eForm’.
PAYE48131 ‘View / maintain BROCS: reminding actions for returns (Action Guide)’ - Under sub heading ‘DOME scheme type where the employer says all cards P12 sent in’, a ‘Note’ has been added prior to step 72.
PAYE48216 ‘Enterprise tax management platform (ETMP): RTI XP return work list’ - This is a new subject.
PAYE48230 ‘Enterprise tax management platform (ETMP): employer repayments’ - Under sub heading ‘Repayment method’ the text under heading ‘BACS’ has been updated and a new heading and text has been added for ‘Returned repayments’.
PAYE52050 ‘Employer return forms: form P37 (pre 6 April 2014)’ - The title has been updated to include ‘(pre 6 April 2014)’ and a ‘Note’ has been added at the beginning of the subject.
PAYE53031 ‘Employer return work lists: filed online advisory (Action Guide)’ - Under sub heading ‘POTREG49 INDICATOR SET’, a new step 15 has been added and the remaining steps in the Action Guide have been re-numbered accordingly.
PAYE54155 ‘Regulation 80 determinations: onus of proof’ - The subject has been updated.
PAYE55001 ‘RTI submissions: introduction’ - Under sub heading ‘Employment Payment Summary (EPS)’ and ‘Earlier Year Update (EYU)’, the text has been updated.
PAYE55010 ‘RTI submissions: information’ - Under sub heading ‘Received’ and heading ‘EPS’ the text has been updated. Under sub heading ‘Pay Period’ and headings ‘EPS’ and ‘EYU’, the text has been updated.

P11D processing

PAYE58601 ‘ECS first user guide (FUG): introduction’ - The text in the third paragraph relating to any queries has been updated.
   

Employment maintenance

PAYE61186 ‘Create employment: capture form P60 (Action Guide)’ - The Action Guide has been updated and new steps added.
   
PAYE62001 ‘Cease employment: introduction’ - The second set of bullets has been updated.
PAYE64001 ‘Maintain employment: introduction’ - Under sub heading ‘The Employment Summary screen’, and heading ‘Tax code in operation’, text has been added to the second paragraph.
PAYE64021 ‘Maintain employment: pay and tax summary screen - amend and delete (Action Guide)’ - This Action Guide has been updated and new steps added.

PAYE operation

PAYE65010 ‘Employment agencies: agency schemes - general’ - Under sub heading ‘NINOs’, the text has been updated.
   
PAYE65021 ‘Employment agencies: agency schemes - initial meeting (Action Guide)’ - Under sub heading ‘Common problems’, at step 5 the first bullet has been updated.
PAYE70001 ‘Aspects of PAYE operation - employer: introduction’ - The final paragraph regarding ‘instructions to employers’ has been updated.
PAYE70023 ‘Aspects of PAYE operation - employer: payment of arrears of pay for closed tax years’ - Under the sub heading ‘Paying the tax that is due’, the telephone number for the ‘Employer Helpline’ has been updated.
PAYE70035 ‘Aspects of PAYE operation - employer: tax tables: simplified deduction schemes’ - This subject has been removed.
PAYE71020 ‘Aspects of PAYE operation - employee: coding: lost deduction documents’ - Under sub heading ‘Where you are told that the employer does not have enough information to prepare duplicate records’, the second bullet has been updated.
PAYE73001 ‘Simplified deduction schemes: introduction’ - A ‘Note’ relating to ‘DOME schemes’ has been added at the start of the subject.
PAYE73010 ‘Simplified deduction schemes: after the year end’ - A ‘Note’ relating to ‘DOME schemes’ has been added at the start of the subject.
PAYE73015 ‘Simplified deduction schemes: code change’ - A ‘Note’ relating to ‘DOME schemes’ has been added at the start of the subject.
PAYE73020 ‘Simplified deduction schemes: employee leaves’ - A ‘Note’ relating to ‘DOME schemes’ has been added at the start of the subject.
PAYE73025 ‘Simplified deduction schemes: increase in pay above PAYE threshold’ - A ‘Note’ relating to ‘DOME schemes’ has been added at the start of the subject.
PAYE73026 ‘Simplified deduction schemes: increase in pay above PAYE threshold (Action Guide)’ - A ‘Note’ relating to ‘DOME schemes’ has been added at the start of the Action Guide.
PAYE73030 ‘Simplified deduction schemes: K code appropriate’ - A ‘Note’ relating to ‘DOME schemes’ has been added at the start of the subject.
PAYE73035 ‘Simplified deduction schemes: new employee’ - A ‘Note’ relating to ‘DOME schemes’ has been added at the start of the subject.
PAYE73036 ‘Simplified deduction schemes: new employee (Action Guide)’ - A ‘Note’ relating to ‘DOME schemes’ has been added at the start of the Action Guide.
PAYE73040 ‘Simplified deduction schemes: repayment during year on cumulative basis’ - A ‘Note’ relating to ‘DOME schemes’ has been added at the start of the subject.
PAYE79031 ‘Targeted review forms: how to process form R40’ - Under sub heading ‘Identifying PAYE and claims R40s’, the first sentence has been updated and under heading ‘Employment declared on R40 - no live employment on NPS’, text has been added at the end of the first paragraph. Under sub heading ‘R40 received for multiple years’ the text has been updated.
PAYE81020 ‘Double taxation claims submitted by non resident individuals: pension income with interest or royalty income’ - The first set of bullets has been updated.
PAYE81060 ‘Double taxation claims submitted by non resident individuals: country specific aspects’ - Under sub heading ‘Sweden’, the second paragraph has been updated.
PAYE81560 ‘International employments: applications under Section 690 ITEPA 2003 - reviewing the application’ - The ‘Flowchart’ and ‘Text version’ attachments have been updated.
PAYE81675 ‘International employments: issuing code NT to employee’ - A further bullet has been added to the second set of bullets.
PAYE81770 ‘International employments: offshore employment intermediaries’ - This is a new subject.

Reconcile individual

PAYE91062 ‘Overpayments: prepare and issue a manual repayment’ - The first bullet has been updated.
   
PAYE91065 ‘Overpayments: repayment claim forms and requests’ - The sub heading ‘Request by telephone when there has been a change of address’ and corresponding text has been removed.
PAYE93001 ‘End of year reconciliation: introduction’ - Under sub heading ‘General information’, in the final set of bullets, a new bullet has been added at the end for work item 447.
PAYE93005 ‘End of year reconciliation: interaction with self assessment’ - Under sub heading ‘General information’ further text has been added. Under sub heading ‘SA years reconciled on NPS’, the second ‘Note’ has been updated.
PAYE93051 ‘End of year reconciliation: automatic reconciliation where code NT operated’ - A further bullet has been added to the opening bullets.
PAYE94001 ‘In-year reconciliation: introduction’ - The opening paragraph has been updated.
PAYE94010 ‘In-year reconciliation: trigger in-year reconciliation’ - The second bullet has been updated.
PAYE94015 ‘In-year reconciliation: automatic in-year reconciliation checks’ - The second sub heading and corresponding text has been updated.
PAYE94020 ‘In-year reconciliation: special circumstances’ - Under sub heading ‘Jobseeker’s / Employment Support Allowance received’, the first bullet has been updated.
PAYE94025 ‘In-year reconciliation: cessation repayments’ - Under sub heading ‘Claim forms’, the first two bullets have been updated.
PAYE94060 ‘In-year reconciliation: unemployment repayments’ - The text in the opening paragraph has been updated.
PAYE94080 ‘In-year reconciliation: work item 119 - P53 required’ - The text in the opening paragraph has been updated.
PAYE95010 ‘HMRC delay: ESC A19: who is eligible?’ - The subject has been updated.
PAYE95050 ‘HMRC delay: ESC A19: when was information received from the taxpayer?’ - The final two paragraphs in the subject have been updated.
PAYE95055 ‘HMRC delay: ESC A19: information from the employer’ - The subject has been updated.
PAYE96010 ‘Un-reconciled cases: cases that will be automatically reconciled’ - Subject updated with information about the ‘Inhibit Automatic Reconciliation indicator’.
PAYE96015 ‘Un-reconciled cases: cases that will be output for clerical clearance’ - A further bullet has been added relating to work item 447.
PAYE96270 ‘Reconciling CY-6 to CY-2: reconciling multiple years - final year result’ - Under sub heading ‘Cases reconciled balanced or overpayment within tolerances, PUP held’, the first paragraph has been updated.

Individual records

PAYE103005 ‘Maintain individual details: gender recognition act’ - The telephone number for enquiries about obtaining or completing the application form has been updated.
   
PAYE103010 ‘Maintain individual details: date of birth’ - The subject has been updated.
PAYE106001 ‘Re-issue correspondence: introduction’ - Under sub heading ‘Re-issue PAYE Service forms’, ‘WAM’ has been updated to read ‘eForm’.
PAYE106010 ‘Re-issue correspondence: re-issue a letter or form’ - Under sub headings ‘General’ and ‘Request for a letter or form to be issued’, ‘WAM’ has been updated to read ‘eForm’.

Work management

PAYE110020 ‘PAYE work management system: work lists’ - Under sub heading ‘Special output indicators’, the text has been updated.
   

PAYE Service income, allowances, benefits and deductions

PAYE130060 ‘IABD: investment income’ - Under sub heading ‘Updating CY and CY+1 IABD’, the first ‘Note’ has been updated.