PAYE49020 - Employer returns: issue / cancel employer returns: non receipt of employer return

This subject is presented as follows

Background
Local Action Notices (LANs)
Action by a Debt Management office 

Background

There may be a number of reasons why a return has not been received from an employer or a contractor.

Reasons may include an employer or contractor

  • Who no longer exists and cannot be traced
  • Who fails to submit their return
  • Whose case is being handled by the Insolvency Claims Handling Unit (ICHU)

In most cases, (with the exception of Direct Payment (DP) and Direct Collection (DC) cases) if returns are outstanding reminders are issued by Banking Operations. If the return is still not received despite these reminders Banking Operations will send Local Action Notices (LANs) to the local Debt Management office to pursue the outstanding return(s).

Local Action Notices (LANs)

LANs will be issued around 1 July each year for most cases where the automatic routine is issued (DP and DC cases are not part of the automatic process and any reminders for outstanding returns must be issued manually. 

When a Debt Management office receives a LAN, action is taken to attempt to obtain the return and this must include personal contact with the employer whenever this is possible.

As it is not possible for the Debt Management office to take penalty proceedings in delay cases their scope for action is very limited if the return is not received after the issue of reminders. Those cases that do remain outstanding have to be cleared by joint action between the Processing Office and the Debt Management office.

Action by a Debt Management office

The action taken will be dependent on whether there is any indication that there has been any liability for the year the return is outstanding.

Each case will be considered on its own merits to decide upon a course of action. The options will include

  • Further pursuit of the return after being supplied with additional information by the Processing Office to enable a return to be obtained or a pro-forma (partial) return to be prepared
  • Preparation of pro-forma returns (partially reconstructed) where sufficient detail has been obtained
  • Regulation 80 determinations
  • Penalty proceedings
  • Preparation of a pro forma constructed Permanent Overpayment (POP) return

Where it is agreed that penalty proceedings will be taken the Debt Management office will

  • Change the status of the case to WWTD
  • Send the LAN and the papers to the Processing Office on a form P212 with a full report of the facts of the case and the course of action agreed to be taken next

Where it is agreed that Regulation 80 determinations are appropriate the Debt Management office will

  • Change the status of the case to WWTD
  • Send the LAN and the papers to the Processing Office on a form P212 with a full report of the facts and the course of action agreed to be taken next

Where it is agreed that penalty proceedings or a Regulation 80 determination are not appropriate the Debt Management office will

  • Where sufficient detail is obtained, prepare a pro forma partially completed reconstructed return for capture by the Processing Office
  • Where it has not been possible to fully account for any amounts paid and enquiries indicate that the overpayment should not be reallocated or repaid, prepare a pro forma constructed POP return for capture by the Processing Office
  • Where there is no indication of liability the Debt Management Office will send a form P212, together with a report of the actions taken to the Employer section