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HMRC internal manual

Self Assessment Manual

Transfer of liability: transfer from PAYE to SA: one year only PAYE cases

Circumstances may arise where a non-SA PAYE case will need to be brought into SA to recover an underpayment.

You will be asked to bring the case into SA, and issue a return for the year in which the underpayment arose, where

  • The P800(T) shows an underpayment of £3000 or more (or less than £3000 which is not possible to collect through PAYE)


  • The taxpayer has not voluntarily met the liability. The voluntary direct payments (P211(Z)) procedures are available where the taxpayer agrees to make payment


  • The date is no later than 23 December three years after the end of the tax year in which the underpayment arose

Note: Where the P800(T) informal calculation covers more than one year, see subject ‘Non-SA Stranded Underpayments’ (SAM140010) and ‘One or more tax year PAYE cases’ (Action Guide) (SAM140021).

Further guidance on informal calculations is provided in the PAYE Manual business area ‘Reconcile Individual’, section ‘End of Year Reconciliation’ (PAYE93000).