PAYE104040 - Individual records: merge individual records: manual merge: post-merge accounting / reconciliation review

Prior to triggering a TRN / NINO, NINO / NINO or TRN / TRN merge, you must consider the current reconciliation and accounting position on the merge-from record and the merge-to record. This is because the transfer of previous reconciliation and accounting information is dependent on whether the result was an underpayment or overpayment and what the current accounting status is. The following information will transfer automatically

  • Payments, that is, overpayments with a status of ‘paid’ and their associated credit allocations and payables will be automatically transferred to the merge-to record when you [submit] the merge
  • Receipts that reflect monies received from the customer with a status of ‘allocated’, ‘unallocated’, ‘part paid’ and ‘non refunded’ will be automatically transferred to the merge-to record when you [submit] the merge and all these statuses will be changed to ‘unallocated’

The following information will not transfer automatically

  • Outstanding underpayments held on NPS which are not identified as Simple Assessment will not transfer from the merged-from record to the merge-to record. Consequently, there will be no Accounting events for these underpayments and you will have to create these
  • Where the merge-from or merge-to record shows an overpayment as ‘pending’ or ‘suspended’, you should initially refer the case to the R400 checker to cancel the repayment, as it may no longer be due. Once the repayment has been cancelled, you can continue with the merge and consider re-reconciliation on the merge-to record
  • Where the merge-from record shows an underpayment as ‘coded out’ in CY-1 (and that year is not reconciled), CY and CY+1
  • Where the reconciliation status held on the merge from account is underpaid and Accounting shows all or part of the underpayment as ‘Sent to ETMP’ this indicates all or part of the underpayment is being collected by Simple Assessment. This will merge as follows
  • PAYE accounts will be checked from CY-1 to CY-4 to identify an existing Simple Assessment year
  • Where there is no information held on the merge to account all accounting updates relating to the Simple Assessment charge will be transferred to the merge to account as part of the merge process
  • Where a Simple Assessment year has a Query or Appeal flag set on the merge from Account, the Query /Appeal deferred transaction details will be transferred to the merge to account
  • A notification will be sent to ETMP to cancel the charge relating to the merge from account. See Action guide tax40009 for further information
  • Where a prior PA302 has an issued status on the merge from account a nil charge PA302 will be issued following the merge. A PA302 will not be issued if the status is pending on the merge from account prior to merge
  • Reconciliation will not trigger automatically on the merge to Account and will require the operator to manually trigger reconciliation

See Action guide tax40009

  • The reconciliation status from the merge-from record, that is, ‘Reconciled - Overpaid’, ‘Reconciled - Underpaid’ or ‘Reconciled - Balanced’. If the merge-to record already has a reconciliation status, that status will be retained

These cases will require a more in depth review. Further guidance is provided in Action guide tax40009.