PAYE53012 - Employer returns: employer return work lists: post capture - 2007-08 onwards (Action Guide)

To deal with work items relating to captured annual returns, for years 2007-08 onwards, included on the ‘Post Capture’ work list follow steps 1 - 32 below.

To deal with a work item on the CIS Deductions Advisory (years 2002-03 to 2003-04) or Post Capture work lists (years 2004-05 to 2006-07) see PAYE53011.

This guide is presented as follows

Initial action

Step 1

CIS deductions suffered

Steps 2 - 4

Problems obtaining the CIS data

Steps 5 - 7

CISR/P35 compare

Step 8

Making the CIS compare for all repayment and non repayment cases where a figure is recorded in the ‘CIS deductions suffered’ box

Step 9

P35 return amount is less than that shown on CISR

Step 10

P35 return amount is more than that shown on CISR or where the employer has not registered as a subcontractor on CISR

Step 11

Checking the Payment and Deduction Statements (PDS) or Invoices

Step 12

Final steps to resolve discrepancy, for all repayment and non repayment cases where a figure is recorded in the ‘CIS deductions suffered’ box

Step 13

Tax credit funding discrepancies

Steps 14 - 16

Review funding authorised

Steps 17 - 22

Tax credits paid

Steps 23 - 30

Deleting the work item

Steps 31 - 32

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

Initial action

The ‘Post Capture’ work list contains work items for every captured return where one or more of the following applies:

  • There is a positive monetary amount in the CIS deductions suffered field
  • There is a tax credit funding discrepancy
  • There is a tax credits paid discrepancy.

Notes:

  • When taking action to deal with a work item on this work list, you must ensure that all post capture checks are worked at the same time
  • You must also consider each reason why the work item has been created on the work list before you delete the work item.

1. Access Function WORKLISTS and select:

  • Worklist Type ‘Post Capture’ from the drop down menu
  • Your Organisation Unit number from the drop down menu and highlight the work item(s) you want to make ‘Working’
  • Select the [OK] button
When asked ‘Do you wish to work the selected item(s)?’
  • Select the [Yes] button.

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CIS deductions suffered

Note: Only limited company subcontractors can claim CIS deductions suffered against their PAYE payments and include them in the ‘CIS deductions suffered’ box of their P35 Employer Return as detailed in the CISR Manual at CISR76020.

2. Check that the employer name on the P35 is a limited company:

  • If the employer is a limited company go to Step 3
  • If the employer is not a limited company, contact the employer and inform them that they are not able to claim CIS deductions suffered against their PAYE payments and tell them that they should include this information on their SA return
  • Agree with the employer that they are not entitled to claim CIS deductions suffered
  • If the return has already been captured with an entry at the ‘CIS deductions suffered’ box, reduce the amount to zero by processing a correction, go to step 31.

3. Use Function VIEW EOY RETURNS HISTORY to check you have received and processed all appropriate returns, and return parts:

  • If you have received all appropriate returns, or return parts go to step
    Otherwise
  • Await receipt of the outstanding returns, or return parts, before proceeding with that work item, unless you are dealing with a provisional employer repayment request, in which cases see PAYE47106.

4. Compare the CIS deductions suffered amount on the captured return(s) with the ‘deductions figure’ held on the CISR system.

To do this:

  • Open CISR using ‘My Workplace’
     And
  • Select the ‘Corporate Services’ folder, followed by the ‘Employers’ folder
  • Select one of the following user roles, as appropriate: 'CISR View Only', ‘CISR Processor’ or 'CISR Process Manager'
  • You will have now reached the CISR ‘Identify Customer’ window
  • Enter the employer’s UTR in the ‘UTR’ field
     Note: You must only use the UTR, otherwise you will not get access to the employer’s subcontractor record.
  • Select ‘Internal Enquiry’ in the ‘Contact’ drop-down box and select the [OK] button
  • Go to step 8
  • Otherwise, if you have difficulty in obtaining the employer’s UTR, go to step

Note: If there has been a merger or succession, add together the ‘CIS deductions figures’ from the CISR system for both the old and the new employer references.

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Problems obtaining the CIS data

5. If you do not have the employer’s UTR, this can be obtained from the following sources:

  • Use EBS Function VIEW LIMITED COMPANY/DIRECTOR DETAILS to view the UTR shown in the ‘Company UTR’ field
  • Use EBS Function VIEW EMPLOYER NOTES and check the employer record pad to review the information recorded (especially form P510)
  • Corporation Tax (CT) section or file
  • If you have been able to establish the company UTR, and this is not held on the employer’s EBS record, use EBS Function AMEND LIMITED COMPANY & DIRECTOR DETAILS to update the employer record. Go to step 8.

Note: When entering a company UTR on EBS, the office number should be entered in field one. If you do not know the office number for the taxpayer a default of 001 should be entered.

Otherwise:

6. If you are unable to find the UTR:

  • Contact the employer and request the UTR
  • Where the employer does not know the UTR request:
  • Their company registration number (CRN)
    And
  • The date they became a limited company
  • Use COTAX Function TRCT (Trace Taxpayer) to obtain the UTR based on the information supplied by the employer
  • If you have been able to establish the company UTR, and this is not held on the employer’s EBS record, use EBS Function AMEND LIMITED COMPANY & DIRECTOR DETAILS to update the employer’s EBS record with the UTR. Go to step 8
    Otherwise

7. Where you establish that the employer was not a limited company for the year of the claim, do not continue to make the compare at this stage:

  • Contact the employer and advise them that, based on the information you hold, they were not a limited company for the year of the claim and as such they are not eligible to make a claim for CIS deductions suffered on their P35. Inform them that you will be arranging for their P35 to be adjusted accordingly
  • BF your papers for 4 weeks for a reply.

If you receive a reply which states that the employer was in fact an eligible limited company, ask for the company UTR:

  • Use COTAX to confirm the company UTR, and if this is not held on the employer’s EBS record, use EBS Function AMEND LIMITED COMPANY & DIRECTOR DETAILS to update the employer’s EBS record with the UTR. Go to step 8.

If the employer informs you that they are an eligible limited company but that the CIS Deductions were recorded against another subcontractor (this could be the proprietor or partnership before the limited company was incorporated) then follow guidance in the CISR Manual at CISR77010, CISR77610 and CISR77620

Otherwise:

If no reply is received at the BF date or the employer confirms that the claim was made in error:

  • Prepare a pro-forma additional return to reduce the amount of CIS deductions suffered to nil
  • Prepare the P35 proforma return Authorisation Stencil (PDF 19KB) and pass the papers and the P35 proforma return to the Authorising Officer
  • For tax years 2004-05 onwards, use Function RECORD RETURN RECEIPT to record receipt of a pro-forma complete return and ensure you select the RSI2 radio button
  • For all years, use Function CAPTURE EOY RETURN DETAILS to capture a pro-forma additional return to reduce the amount of CIS deductions suffered to ‘nil’
  • Use Function AMEND EMPLOYER NOTES to record your actions and then file the papers in the employer record pad
  • Go to step 31.

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CISR/P35 compare

8. From the CIS Main menu window, select:

  • The subcontractor registration ‘As Company’
     And then
  • ‘View Customer’ from the menu options at the bottom of the window
     And then
  • [Designatory Details] button at the bottom left of the ‘Registration Details’ window
     And then
  • ‘Payment Details’ from the menu at the top of the ‘Company Details’ window.

This will show you, under the heading ‘Total Made To Date’, for this employer in their capacity as a subcontractor, the:

  • ‘Total Payments:’ made to date
  • ‘Cost Of Materials:’ supplied by them
     And
  • ‘Total Deducted:’ showing the total of all CIS deductions made from their payments by all contractors for whom they worked in the selected period.

You will need to set the ‘Period Starting:’ and ‘Period Ending:’ dates for the year you want to see. For example, for the tax year 2008-2009, this will be ‘Period Starting:’ 06/04/2008 and ‘Period Ending:’ 05/04/2009:

  • Select the [Filter] button to display the payments relating to the tax year (or other period) that you have chosen.

The individual payments and deductions for the filtered period will then be displayed in the list box immediately below the [Filter] button, with the grand totals for that period shown above in ‘Total Payments:’, as described earlier. If you need more information see CISR90210.

Important notes:

a. If the subcontractor registration selection described in the previous step does not read ‘As Company’, but states ‘As sole trader or ‘As partnership’ then the employer is not a limited company. Where that happens:

  • Do not continue to make the compare at this stage
  • Go back to Step 7.

Where the employer / contractor is a limited company:

b. If the subcontractor registration for this employer/contractor is ‘greyed-out’, the employer / contractor has not registered as a subcontractor, take the following action:

  • Instruct the employer / contractor to register as a subcontractor immediately
  • Advise that as the employer / contractor appears not to have previously registered as a subcontractor, there may be a delay in dealing with any repayment
  • Ask the employer / contractor for the information in Step 11 below.

If the subcontractor or their agent requests details of any CIS payments and deductions as reported on the monthly returns of contractors for whom they have worked, you must not automatically give details of the information shown on CISR. It is the subcontractor’s responsibility to maintain accurate business records.

If the subcontractor’s contractor(s) cannot, or refuses to provide the necessary documentation, the subcontractor should put their request in writing and send it to the Newry or Hull CIS Centres, as appropriate. (See below).

They should include full details of the contractor(s) for whom they worked (name, references, address) and details of the months for which they are missing the data. They must also give reasons why they do not have the Payment and Deduction Statements (PDS) and why they could not get a copy of the PDS from the contractor.

All requests to supply this information in bulk, received from subcontractors’ agents or any other third-parties must be refused.

Written requests for CIS payment and deduction details from subcontractors that are companies (CT customers) should be sent to:

HM Revenue and Customs
Individual and Small Business Compliance
Swansea
BX9 1LE

Written requests for CIS payment and deduction details from subcontractors that are individuals or partners in firms (SA customers) should be sent to:

HM Revenue and Customs
CT CIS Centre
Carnbane Way
Newry
BT35 6OG

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Making the CIS compare for all repayment and non repayment cases where a figure is recorded in the ‘CIS deductions suffered’ box

9. Compare the figure for ‘CIS deductions suffered’, captured from the ‘CIS deductions suffered’ box of the P35 return, with the ‘Total Deducted:’ amount, shown on CISR

If the two figures agree, (This content has been withheld because of exemptions in the Freedom of Information Act 2000)

  • Accept either
  • Any repayment claim in full
    Or
  • Where there is no repayment claim accept the figure recorded in the ‘CIS deductions suffered’ box
    And
  • Go to step 31
    Otherwise:
  • Your next action will depend upon whether the amount recorded on CISR under ‘Total Deducted:’ is less than or greater than the amount shown in the ‘CIS deductions suffered’ box on the P35 return.

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P35 return amount is less than that shown on CISR

10. If the amount shown at ‘CIS deductions suffered’ on the P35 return is less than the amount shown on CISR, under ‘Total Deducted’:

  • Accept the amount recorded at ’CIS deductions suffered’ on the P35 return
  • If you are dealing with a repayment claim use this figure in any calculation
  • Use EBS Function AMEND EMPLOYER NOTES to record details of your actions to include:
  • The amount recorded on CIS (on that particular date)
  • The amount shown in ‘CIS deductions suffered’
  • Go to step 31.

Note: Analysis of recent cases indicates that most of these cases correct themselves when amended CIS returns are received and the information in the note will be required if a further repayment request is received, you need not therefore take any further action.

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P35 return amount is more than that shown on CISR or where the employer has not registered as a subcontractor on CISR

11. If the amount shown in the 'CIS deductions suffered' box on the P35 return is greater than the ‘Total Deducted:’ amount shown on CISR and (This content has been withheld because of exemptions in the Freedom of Information Act 2000), or the employer has not registered as a subcontractor on CISR (This content has been withheld because of exemptions in the Freedom of Information Act 2000)

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  • Contact the employer and ask them to submit:
  • All relevant payment and deduction statements (PDS) for the tax year and a summary of these, month-by-month, with the associated contractors’ names and addresses, together with
  • Cross-referenced copies of bank statements supporting the PDS documents, in order to substantiate their claim for CIS deductions as shown on their P35 return. (We need this evidence to be certain that the PDS are genuine).

Note: Any original PDS or bank statements received should be copied and returned to the employer.

Where PDS are not available (where the contractor is a limited company that has been dissolved or is a non limited company that is now insolvent and ceased to trade), you should ask the employer to submit invoices for the work done, married up with the bank statements showing payment for the work done as shown by the invoice.

Note: This contact must be made at the same time that contact is made to resolve any other discrepancies on the Post Capture work list. Do not contact the employer on separate occasions to deal with each aspect you are reviewing.

If the employer claims that they were not provided with some, or all PDS documents because the contractor became insolvent and you have now obtained invoices and bank statements:

  • Refer the case to Debt Management & Banking (DMB) to follow the guidance in the CIS Manual at CISR74040 advising them of the amount that you have now given credit for to the employer, and that you have been able to verify from the PDS or invoices and bank statements supplied. Go to step 12
  • Use Function AMEND EMPLOYER NOTES to record details of your actions.

If the employer:

  • Is unable to provide PDS or invoices supported by copy bank statements to substantiate the amount claimed in ’CIS deductions suffered’
     Or
  • Does not reply to your enquiry
  • Go to step 13

Otherwise

  • On receipt of the PDS and supporting copy bank statements, go to step 12.

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Checking the Payment and Deduction Statements (PDS) or Invoices

12. Compare the total of the deductions shown on the recently supplied PDS documents or invoices, each of which must be supported by entries for the net payments on the copy bank statements, with the total ‘CIS deductions suffered’ amount shown on the P35:

  • Check carefully that PDS documents or invoices have not been supplied in the name of a sole trader or partnership where a business has recently incorporated as a limited company

If this happens you should:

  • Follow the guidance in the CISR Manual starting at CISR77000.

On no account should credit for a CIS deduction be granted to an employer, where they say that although a deduction was due to be made from a payment, the payment was never actually received from the contractor.

If you are now satisfied that the amount of ‘CIS deductions suffered’, shown on the P35 return, agrees with the total deductions shown on the PDS documents you have been sent, (This content has been withheld because of exemptions in the Freedom of Information Act 2000)

  • Accept the amount recorded at ‘CIS deductions suffered’ on the P35 return
     Or
  • If you are dealing with a repayment claim use this figure in any calculation
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  • Use Function AMEND EMPLOYER NOTES to record details of your actions
  • Do not await a reply from RIS in these circumstances
  • Where the employer had not registered as a subcontractor on CISR at the date of your initial check (but has since done so), send a full report, entitled ‘Company subcontractor seeking repayment where no subcontractor record set up’ to CIS Centre Newry
This report should provide:
  • Contractors name
  • Contractors UTR
  • Details of the CIS deductions for each month and year which need to be recorded on to CISR for each month
  • File the copies of the PDS and bank statements in the employer record pad.
Note: Ensure that the contractor’s UTR is included in the report and send to:
HM Revenue and Customs
CIS Centre
Carnbane Way
Newry
BT35 6QG
  • Go to step 31.

Otherwise go to step 13.

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Final steps to resolve discrepancy, for all repayment and non repayment cases where a figure is recorded in the ‘CIS deductions suffered’ box

13. The action you must now take to resolve the matter depends on the response you have received from the employer

If the employer has:

  • Been unable to provide you with sufficient PDS documents or invoices, supported by copy bank statements, to verify the ‘CIS deductions suffered’ figure shown at the ‘CIS deductions suffered’ box of the P35, (This content has been withheld because of exemptions in the Freedom of Information Act 2000) 
     Or
  • Has not replied to your enquiry.

You should:

  • Restrict the amount of recorded ‘CIS deductions suffered’ on the P35 return to the ‘Total Deducted:’ shown on CISR plus any further amount you have been able to confirm from the PDS documents or invoices, supported by copy bank statements - even though this is still less than the amount recorded on the P35
  • Inform the employer that the amount of CIS deductions claimed on the P35 has been restricted to £XXXX.XX because this is the only amount that you are currently able to confirm, (subject to the employer producing further documentary evidence of the claimed deductions)
  • Use Function RECORD RETURN RECEIPT to record receipt of a pro-forma complete return and ensure you select the RSI2 radio button
  • Use Function CAPTURE EOY RETURN DETAILS to capture a pro-forma additional return to reduce the ‘CIS deductions suffered’ figure on the P35 return to the amount confirmed as ‘Total Deducted:’ on CISR plus any further amount you have been able to confirm from the PDS documents, as described in the first bullet above
  • Use Function AMEND EMPLOYER NOTES to record details of your actions.

If you restricted the claim because the employer did not respond to your request to supply PDS documents or invoices, supported by copy bank statements:

  • BF the case for four weeks to await any response from the employer
  • If the employer does not respond - go to step 31 
    Otherwise
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  • Where the employer had not registered as a subcontractor on CISR at the date of your initial check (but has since done so), send a full report, entitled ‘Company subcontractor seeking repayment where no subcontractor record set up’ to CIS Centre Newry
This report should provide:
  • Contractors name
  • Contractors UTR
  • Details of the CIS deductions for each month and year which need to be recorded on to CISR for each month
  • File the copies of the PDS and bank statements in the employer record pad
  • Newry will use this information to make sure the CIS deductions in question are shown on the CISR record.
Note: Ensure that the contractor’s UTR is included in the report and send to:
CIS Centre Newry
HM Revenue and Customs
CIS Centre
Carnbane Way
Newry
BT35 6QG
  • Go to step 31.

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Tax credit funding discrepancies

Note: If an employer tells you that they have paid Working Tax Credit after 31 March 2006 and / or has carried forward TCF into 2006-07, you should advise the employer to contact the Employer Helpline on 0300 200 3200 (text phone 0300 200 3212).

You must first obtain certain information to resolve the funding discrepancy (Word 26KB). When you have obtained the information.

14. Use EBS Function VIEW EOY RETURNS HISTORY to check if the Funding Discrepancy Indicator is set:

  • If the indicator is set, go to step 15
  • If the indicator is not set go to step 31.

15. Compare the captured figure of tax credit funding authorised shown on EBS with the entry made on the P35:

  • If the figures disagree go to step 16
  • If the figures agree go to step 17.

16. The amount you have captured is incorrect. You must:

  • Process a correction return for a Net Adjustment (Word 30KB) amount ,which when added to the previously captured figure, will result in the consolidated position (Word 31KB) being equal to the funding figure entered on the return
  • At the top of the original return, note in green, the words ‘Correction return processed to correct keying error for TCF’
  • Where a discrepancy still exists go to step
  • Otherwise go to step 30.

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Review funding authorised

17. Use NTC Function VIEW EMPLOYER ACCOUNT to establish the total funding figure received by the employer.

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18. If you will need to investigate the discrepancy by contacting the employer:

  • Advise the employer that there appears to be a discrepancy between the amount of funding they have entered on their return and the funding figure we hold
  • Ask the employer to check the final form TC712 received for the year and confirm the amount shown for ‘Total funding in tax year’.

Note: Where there has been a merger or succession the ‘Total funding in tax year’ must include the amount shown on the TC712 for both the old and new employer references.

The next action will depend on the response from the employer:

  • If the funding was allocated to a wrong employer reference go to step 19
  • If the funding should have agreed with the amount on NTC go to step 20
  • If the employer advises that some of the funding was not used go to step 2
  • If you are unable to resolve the discrepancy go to step 22.

19. If funding was allocated to a wrong employer reference:

  • Establish if the employer references are connected (employer references are connected when they relate to the same employer, legal entity)
If the employer references are not connected:
  • Ask the employer to pay back the amount of funding used against the wrong employer reference. If the employer is unwilling to do this go to step 22
If the employer references are connected and relate to the same employer:
  • Send an email to ‘TCO-BDD,TAL-S1 (TCO Preston 6)’ with the title ‘Movement of Employer Funding request PAYE53011’ and request that the relevant funding is reallocated against the correct employer reference
     
    Note: It is essential that you use the correct email title to allow the TCO to identify these cases.
  • When the funding has been reallocated go to step 31.

20. If you are able to agree that the amount entered onto the return should be the amount shown on NTC:

  • Prepare a pro-forma additional return for a Net Adjustment (Word 30KB) amount ,which when added to the previously captured figure, will result in the consolidated position (Word 31KB) being equal to the funding figure shown on NTC
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  • Go to step 31.

21. If the employer advises that some of the funding was not used in the year:

If the year is 2003-04 or 2004-05 and the funding has been used in the following year:
  • Send an email to ‘TCO-BDD,TAL-S1 (TCO Preston 6)’ with the title ‘Movement of Employer Funding request PAYE53011’ and request that the unused funding is reallocated to the following year
     
    Note: It is essential that you use the correct email title to allow the TCO to identify these cases.
  • When the funding has been reallocated - go to step 31.
If the year is 2005-06:
  • Advise the employer that the funding can not be reallocated to 2006-07 and all the funding must be declared on the 2005-06 return
  • Prepare a pro-forma additional return for a Net Adjustment (Word 30KB) amount ,which when added to the previously captured figure, will result in the consolidated position (Word 31KB) being equal to the funding figure shown on NTC
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Go to step 31.

22. If you have been unable to resolve the discrepancy because:

  • The employer advises that the funding amount entered on the return was correct
     Or
  • The employer is unable to agree to a correction to their return 
    Or
  • You have been unable to contact the employer after at least two attempts at different times on different days:
  • Complete the RIS compliance referral form. (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
Note: If the work item relates to a case where an overpayment disposal instruction is required, you must wait for a response from DMB before proceeding with the overpayment disposal instruction.

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Tax credits paid

On 9 February 2007, all Tax Credit Paid (TCP) entries on the Post Capture work list were removed and archived. Any entries for TCP discrepancies generated after that date will continue to populate this Work List but, these new cases must only be reviewed where an employer overpayment arises. You must continue to work cases shown on the work lists under the categories ‘TCF’ and ‘CIS’.

Note: In all cases where you are required to investigate an apparent employer overpayment and the employer has paid tax credits, you must continue to reconcile any amounts of ‘TCP’ shown on the relevant P35, even though there may not be an entry for that employer record on the Post Capture work list.

23. Use EBS Function VIEW EOY RETURNS HISTORY to compare the captured figure of tax credit paid shown on EBS with the entry made on the P35:

  • If the figures disagree go to step 24
     Or
  • If the figures agree go to step 25.

24. The amount you have captured is incorrect. You must:

  • Process a correction return for a Net Adjustment (Word 30KB) amount ,which when added to the previously captured figure, will result in the consolidated position (Word 31KB) being equal to the tax credits paid figure entered on the return
  • At the top of the original return, note in green, the words ‘Correction return processed to correct keying error for TCP’
  • Where a discrepancy still exists go to step 25
  • Otherwise go to step 31.

25. Use NTC Function VIEW PVE DETAILS FOR EMPLOYER to establish the total authorised PVE for the year:

  • If the total authorised PVE figure agrees with the amount claimed on the P35, no further action is required in respect of this aspect:
  • Go to step 31
  • (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
  • (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
  • (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
  • (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
  • (This content has been withheld because of exemptions in the Freedom of Information Act 2000)

26. If you will need to investigate the discrepancy by contacting the employer:

  • Advise the employer that there appears to be a discrepancy between the amount of tax credits paid entered on their P35 and the figure we hold
  • Ask the employer to confirm that the amount entered on their P35 agrees with the tax credit notifications received for that employer reference
  • If discrepancies are identified ask for details of those applicants involved (names, national insurance numbers and PAYE reference numbers quoted on those notifications).

Your next action will depend on the employers’ response.

27. If the employer advises the tax credits paid amount entered on the P35 was incorrect (and should have agreed with the total authorised PVE figure shown on NTC):

  • Agree any amendment to the P35 figure with the employer, when agreement is reached
  • Prepare a pro-forma additional return for a Net Adjustment (Word 30KB) amount ,which when added to the previously captured figure, will result in the consolidated position (Word 31KB) being equal to the PVE figure shown on NTC
  • (This content has been withheld because of exemptions in the Freedom of Information Act 2000)(This content has been withheld because of exemptions in the Freedom of Information Act 2000)(This content has been withheld because of exemptions in the Freedom of Information Act 2000)
  • (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
  • Go to step 31.

28. If the employer advises you that:

  • They have received incorrect tax credit notifications for their employer reference
     And
  • The tax credits paid amount entered on the P35 incorrectly includes payments made to applicants held under another employer reference
You will need to amend both the:
  • PVE figure shown on NTC
    And
  • The tax credits paid amount entered on the P35
  • Agree any amendment to the P35 figure with the employer
  • Establish if the employer references are connected.
     
    Note: Employer references are connected when they relate to the same employer.

If the employer references are unconnected or do not relate to the same employer:

  • Send a form TC681 (available on LFC 2000) to the Employer Liaison Team (in the Tax Credit Office) advising them of the applicants to be removed from the employer reference
  • Prepare a pro-forma additional return for a Net Adjustment (Word 30KB) amount ,which when added to the previously captured figure, will result in the consolidated position (Word 31KB) being equal to the P35 amount agreed with the employer
  • (This content has been withheld because of exemptions in the Freedom of Information Act 2000)(This content has been withheld because of exemptions in the Freedom of Information Act 2000)(This content has been withheld because of exemptions in the Freedom of Information Act 2000)
  • (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
  • Go to step 31.

If the employer references are connected and relate to the same employer:

  • Use NTC Function AMEND PVE DETAILS to move the PVE award for each applicant to the correct employer reference
Note: If, when attempting to move an applicant, the error message ‘Scheme type does not support PVE’ is displayed, you will need to take the following action.
  • Use EBS Function AMEND EMPLOYER SCHEME DETAILS to change the scheme type
  • On the next working day, after the scheme type has changed, use NTC Function AMEND PVE DETAILS to move the PVE award for each affected applicant to the correct employer reference
  • Send a form TC681 (available on LFC 2000) to the Employer Liaison Team (in the Tax Credit Office) advising them of the applicants to be removed from the employer reference
  • Prepare a pro-forma additional return for a Net Adjustment (Word 30KB) amount ,which when added to the previously captured figure, will result in the consolidated position (Word 31KB) being equal to the amount agreed with the employer and the PVE figure shown on NTC
  • (This content has been withheld because of exemptions in the Freedom of Information Act 2000)(This content has been withheld because of exemptions in the Freedom of Information Act 2000)(This content has been withheld because of exemptions in the Freedom of Information Act 2000)
  • (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
  • Go to step 31.

29. If the employer advises you that the tax credits paid amount entered on the P35 was correct, and NTC includes payments made to applicants held under another employer reference:

  • Agree any amendment to the P35 figure with the employer
  • Establish if the employer references are connected
     
    Note: Employer references are connected when they relate to the same employer.

If the employer references are unconnected or do not relate to the same employer:

  • Send a form TC681 (available on LFC 2000) to the Employer Liaison Team (in the Tax Credit Office) advising them of the applicants to be removed from the employer reference
  • Go to step 31.

If the employer references are connected and relate to the same employer:

  • Use NTC Function AMEND PVE DETAILS to move the PVE award for each applicant to the correct employer reference
Note: If, when attempting to move an applicant, the error message ‘Scheme type does not support PVE’ is displayed, you will need to take the following action.
  • Use EBS Function AMEND EMPLOYER SCHEME DETAILS to change the scheme type
  • On the next working day, after the scheme type has changed, use NTC Function AMEND PVE DETAILS to move the PVE award for each affected applicant to the correct employer reference
  • Send a form TC681 (available on LFC 2000) to the Employer Liaison Team (in the Tax Credit Office) advising them of the applicants to be removed from the employer reference
  • Go to step 31.

30. If you are unable to reconcile the discrepancy with the employer or the employer does not respond to your enquiries:

  • Consider preparing a pro-forma P35 to account for the Tax Credits paid, in accordance with the ‘Overpayment notification (Action Guide)’, see PAYE47061
  • Go to step 31.

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Deleting the work item

31. When you have dealt with every aspect for which the work item was generated on the work list, use the [Delete] button to delete the work item from the list.

32. Where there is an apparent employer overpayment for the work list item, continue to deal with this in accordance with the ‘Overpayment notification (Action Guide)’, see PAYE47061.