PAYE27042 - Employer records: maintain schemes: TAS - cessation of a TAS scheme (Action Guide)

To take the appropriate action when an employer record is no longer required and the scheme is to be closed, follow steps 1 - 27 below. This Guide is presented as follows

Step 1

Initial action

Steps 2 - 5

Clerical action

Steps 6 - 8

P35(TAS) issue

Steps 9 - 12

P35(TAS) not received by due date

Steps 13 - 21

P35(TAS) received by due date

Steps 22 - 27

Action at revised due date

For details of how to access any of the Employer Business Service functions, use PAYE057.

Initial action

1. If you have received confirmation from the scheme provider that the scheme has ceased

  • Use Function AMEND EMPLOYER SCHEME HISTORY to enter the cessation date

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Clerical action

2. Retrieve the employer related electronic file ‘Taxed Award Schemes’

3. Delete the entry for your scheme provider in the employer related electronic file ‘Taxed Award Schemes’

4. If all contracts have expired

  • Use Function AMEND EMPLOYER NOTES to record your actions and then file the papers in the employer record pad

5. If a contract has been terminated

  • BF the Taxed Award Scheme file to 90 days after the issue of the notice of termination to the provider
  • At BF date go to step 7

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P35(TAS) issue

6. Issue the following to the provider (amending where necessary)

  • P35(TAS) with the following amended entries
    • Tax year if appropriate
    • Delete last sentence of third paragraph ‘…….after the end of the year’ and replace with ‘…….of the date of issue of this form’
  • P440 and P440(CS) (one for each Taxed Award contract) with the following amended entry
    • Tax year if appropriate
  • TAS Payment advice
    • Delete ‘4 July..’ and insert the date 90 days after the date of issue of the form P35(TAS)
  • L30(A)(CL) / L30(B)(CL) Payslips
    • Delete all references to National Insurance, Statutory Sick Pay and amounts deductible from subcontractors
    • Enter in the box headed ‘Debt Management Reference’ the Accounts Office reference, the last two digits of the last tax year and in the final section enter ‘12’
    • When entering the employer’s name include the words ‘Incentive Scheme’
  • Envelope ENV 26(R)(F) or ENV 26(R)(B)
    • Enter your Employer section address
  • Envelope ENV AZ ENZ 5 (BR)

7. Record in employer record pad

  • Date of issue of P35(TAS)
  • Number of forms P440 sent

8. BF the papers for a further 90 days for receipt of P35(TAS) by the due date

  • If the P35(TAS) is received by the due date go to step 13
  • If the P35(TAS) is not received by the due date go to step 9

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P35(TAS) not received by due date

9. Contact the provider by telephone where possible reminding them to complete and return the form and make the payment due

10. BF your papers for the outstanding P35(TAS)

  • If the P35(TAS) is received go to step 13
  • If the P35(TAS) is still outstanding at the BF date go to step 11

11. At the BF date send a memo to the Debt Management Office giving the following details

  • Tax year concerned
  • Revised due date
  • Dates of issue of P35(TAS) and reminder
  • Number of contracts involved and the details of each

12. Use Function AMEND EMPLOYER INDICATORS to set the indicator INSTIND to (1)

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P35(TAS) received by due date

13. If you have already referred the scheme to the Debt Management Office to pursue for non-receipt advise them that it has now been received

14. Check if the declaration on form P35(TAS) has been signed. If not

  • Photocopy form P35(TAS)
  • Use photocopy when reconciling scheme
  • Send form P35(TAS) back to the provider asking them to complete the declaration and return the form to you

15. Check the number of contracts shown on the back of form P35(TAS)

  • If all basic and higher rate contracts shown on form P440 go to step 16, otherwise
  • Write to the provider asking for the missing forms (and treat them as additional returns when received)

16. Find the employer papers

17. Check the subfolder for each contract shown on the front of P35(TAS). If any contract expired during the P35(TAS) year

  •  Delete the entry for the contract in the ‘list of contracts’ for that Taxed Award Scheme held in the employer related electronic file

18. Check the figures for the following

  • Carry forward figures of ‘Gross value’ and ‘Basic rate’ tax from any forms P440(CS) to forms P440
  • Carry forward figures of ‘Basic rate or higher rate’ tax from forms P440 to form P35(TAS)
  • Arithmetic for ‘Total payable’ on form P35(TAS)
  • That the ‘Total payable’ is within £5 of the total ‘Gross value’ on all forms P440 x basic rate or higher rate tax for the year

19. Check if the provider has carried forward any altered figures correctly

  • If not write to the provider for the correct figures

20. Check if any of the tax figures on form P35(TAS), P440 or P440(CS) are incorrect. If so

  • Cross the incorrect figure out and insert the correct one (in green ink) next to it
  • Advise the provider of the revised figures

21. BF your papers until the revised due date

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Action at revised due date

22. Use Function VIEW BROCS to obtain a screen print of the Employer Data Year Summary for the year

23. Compare the screen print with the tax due shown on P35(TAS). Is the tax due shown on P35(TAS) all paid?

  • If yes go to step 25
  • If no go to step 24

24. Send a memo to the Debt Management Office advising details of

  • Tax year
  • Revised due date
  • Amount due shown on form P35(TAS)
  • Date form was signed
  • 25. BF your papers until after 5 April of the tax year shown on form P35(TAS)

26. At BF use Function CAPTURE EOY RETURN DETAILS to process the P35(TAS)

  • Ensure you show the total tax figure on the front of form P35(TAS)
  • Enter ‘Y’ in the INHIBIT U/P field

27. File away papers in appropriate ranges