PAYE92040 - Reconcile individual: posting EOY information to individual records: P14 / RTI end of year records
After the end of the tax year, in reconciling employees’ tax liabilities for the year, information supplied by employers the employee has worked for during the year is used to determine the pay and tax details to use within the reconciliation. For employers who do not yet operate under the RTI system and / or those who are exempt from RTI the details are taken from the end of year forms P14 submitted by the employer and for employers within RTI the details are taken from an ‘End of Year record’ produced by the RTI system.
You will be able to determine the source of the pay and tax used within a reconciliation as the Source field within the Pay and Tax Summary screen for the year concerned will show either ‘P14’ or ‘RTI’.
Further details about each type of record are given below.
Employer submitted P14 cases
Employers outside RTI are required to submit a P35 ‘Employer Annual Return’ with supporting ‘End of Year Summary’ forms P14 for each individual employee, to confirm the pay provided to their employees and deductions made during the year. The P14 must show:
- The latest tax code used, and any Week 1 / Month 1 marking
- Where the cumulative basis applies, the total pay and total tax for this latest employment and for any previous employment(s)
- Where the cumulative basis does not apply, the total pay and total tax for this latest employment only
- Entries of 53, 54 or 56 where there are more than the expected number of pay days falling within the tax year (depending on whether pay is received weekly, fortnightly or monthly)
- The dates of starting and leaving where the employee started or left employment during the tax year
- Details of National Insurance Contributions, Student and/or Postgraduate Loan deduction and Widows and Orphans payments made during the year
- Details of any Statutory payments included in the pay for the latest employment.
The form P14 is treated as the summary of pay and evidence of tax deducted or refunded for the latest employment and where the cumulative basis applies, for the previous employment also.
There is no need to check the form P14 details and you should accept the figures shown unless you have reason to think that they are incorrect, for example where an employer has contacted HMRC and has advised that an amended return has been made for the year.
If an employer becomes bankrupt or otherwise fails to remit PAYE deducted to HMRC, use the figure of net tax deducted or refunded when you review the liability for each employee. An employee is not to suffer because an employer fails to pay over to HMRC the tax deducted from employees.
Note: RTI Employers are not required to submit a P35 ‘Employer Annual Return’ or forms P14 after the end of the tax year. Following the end of the tax year, the RTI Service will create an ‘EOY Record’ from the FPS details submitted for an individual during the year. The EOY Record will be converted into the format of a P14 record, which will be posted against the individual’s record during EOY processing. See PAYE92010.
Errors on P14
If the employer reports errors you should give the information to the Business Helpdesk. You should normally however accept the figures on the form P14 without checking them.
Errors may come to your notice from:
- Fresh facts the employer gives
- A report from Debt Management or Employer section
- Your review of other returns and reports
- A complaint from a customer.
However notified, the action that you take will depend upon whether the employer has deducted too much or too little tax.
If the employer has deducted too much tax, consider whether a repayment is required. However, the employer will have to demonstrate how the employee was overpaid wages or pension and that the explanation / facts are convincing. If they are not, then repayment should be refused.
If the employer has deducted too little tax see PAYE92066.
Omissions on P14
If the employer omits an entry from any form P14, write and ask for the missing facts. See PAYE41025.
e-Services Filestore P14 search
You can search for an individual P14 held on the e-Services Filestore using one of the following options:
- Search using a NINO combined with an employer reference
- Search using date of birth and gender combined with an employer reference
- Search using a surname combined with an employer reference.
You can also view all forms P14 submitted under an employer reference by using the employer reference only.
Note: It is essential that you use this option only where you do not have sufficient information to use any of the other options available.
RTI created end of year records
Employers within RTI are not required to submit a P35 ‘Employers Annual Return’ and / or forms P14 after the end of the year. Following the end of the tax year, the RTI service will create an ‘End of Year Record’ from the FPS / EYU / further year to date FPS (and if required any Internal Adjustment (IA) made to them) submitted by the employer and the details concerned will be used within the end of year reconciliation process.
With regard to the RTI details shown in NPS:
- Unlike employer submitted forms P14, the RTI created End of Year Record does not display in the e- Services Filestore
- For RTI created End of Year records, the Employers Name field within the P14 Details screen will be blank
- Unless you are specifically instructed to do so, for example whilst following an action guide to resolve a work item, you should not use the FPS / EYU / further year to date FPS details displayed within a record to create a P60 for use within the reconciliation process. For early repayment claims you should continue to follow the instructions at PAYE91015