PAYE43001 - Employer returns: capture employer return - 2005 onwards: introduction

Note: This section provides details of how to capture employer returns for tax years 2004 to 2005 onwards.

Reference to CIS in this information applies to the old CIS scheme for years up to April 2007, when ‘New CIS’ was introduced.

Each employer and contractor must submit an annual return to HMRC. The return is a summary of

  • Tax and National Insurance deductions made from employees and subcontractors
  • Tax from sub-contractors for years up to 2006 to 2007
  • Total payments of tax credits made to certain employees for years up to 2005 to 2006
  • Student and or postgraduate loan deductions made from employees who are Student and or postgraduate loan borrowers

There are different types of returns and some employers may submit more than one return of the same or different type in any tax year. From April 2005 returns for year 2004 to 2005 can be submitted in parts when using online filing or Magnetic Media. If an employer intends to send the whole return by paper, then the return must be submitted as a complete return and not in parts.

This section covers

  • The processes after receipt of the return has been recorded to enable you to capture a return
  • The capturing of return information on the Employer Business Service (EBS)
And
  • Work which results from the capture of the return. For example overpayments

Capturing P35 charge on ETMP

Where you have a P35 return captured on EBS for tax years 2013 to 2014 onwards you will be required to manually capture the charge in ETMP. To do this, follow guidance at PAYE43210.

COYO

EBS allows you to clear a year on an employer record cancelled one year only. There are two functions that will let you do this. You can set the COYO year-related indicator using

  • Function AMEND EMPLOYER INDICATORS for a single employer record
Or
  • Function CANCEL SCHEME ONE YEAR ONLY if you want to clear the year cancelled one year only on a number of employer records

The following subjects give further details

  • ‘Cancelled one year only (COYO)’ at PAYE21020
And
  • ‘Nil returns - 2005 Onwards’ at PAYE43030

Overpayments (supervision and authorisation)

A new function OVERPAYMENT DISPOSAL introduced from April 2001 allows you to advise Banking Operations how to deal with an overpayment.

A new function AUTHORISE OVERPAYMENT DISPOSAL was introduced in April 2004 to enable authorising officers, with the EBS Supervisory role, to authorise or delete the instruction.

The manual procedures for dealing with non-automated overpayments (P565 procedures) will remain and these will still need to be authorised. Information about all aspects of overpayments can be found in ‘Employer return - overpayments’ at PAYE47000.

P228

Function VIEW EOY RETURN HISTORY allows you to view all P228s that have been generated following the capture of a return for years up to 2004 and the recording of the receipt of a return for years 2005 onwards. As a result there will now only be one copy of the P228 produced for onward submission with the P14s to NICO. ‘Form P228’ at PAYE41020 provides further details.

Data Protection Act

The provisions of the Data Protection Act 1998 (DPA) apply to employer records in the same way as they apply to taxpayer records on other HMRC computers.

You must only access an employer record if you have a business need to do so.

Bear in mind that an audit trail is created every time you access an employer record. Any unauthorised or inappropriate accesses will be considered for action under the Department’s Conduct and Discipline rules, and may constitute a criminal offence.