PAYE93065 - Reconcile individual: end of year reconciliation: tax calculation results - cancelling a tax calculation

There may be times when a calculation that has been done either online or automatically is incorrect and you want to cancel it. The way in which you do this and whether or not you will be allowed to do so will be dependant on whether the calculation was done as single year reconciliation or, it forms part of a multiple year reconciliation (PAYE96201).

Tax calculations done as a single year reconciliation

When you wish to cancel a single year reconciliation tax calculation, whether or not you will be allowed to do so will be dependant upon the ‘status’ (PAYE93037) of the calculation at the time.

Status - ’Blank’ or ‘Pending’

When the status of the tax calculation is either ’Blank’ or ‘Pending’ you can cancel the calculation by selecting the ‘Cancel Tax Calculation’ action link on the Tax Calculation screen of the calculation concerned.

When you do this you will receive an on-screen message asking you to confirm the action. Where you choose

  • ‘Yes’, the calculation will be cancelled. Details of the calculation will not be retained and you will not be able to access it at a later date to amend / issue it
  • ‘No’, the calculation will not be cancelled and it will retain its original values and status. Where the status was previously
  • Blank, you will be able to access the calculation at a later date to amend / issue it
  • Pending, the calculation will proceed to be issued

The Cancel Tax Calculation action link should only be used where you want to cancel a tax calculation. For cases where the calculation being viewed needs to be amended, (rather than cancelled,) you should select the [Cancel] button (PAYE93037) to abort the calculation before amending the values within it.

Note: Using the 'Cancel Tax Calculation’ link in the Tax Calculation screen does not cancel any repayment that was created as a result of the reconciliation. You must follow the relevant guidance in PAYE91010 depending on the status of the overpayment and calculation.

Status - ‘Issued’ or ‘Cancelled’

You cannot cancel a tax calculation that has a status of ‘Issued’ or ‘Cancelled’. In these cases, where the calculation concerned is incorrect you should

  • Update the entries in IABD that need to be amended
  • Reconcile or re-reconcile the year concerned

Cancelling a Simple Assessment tax calculation

Simple assessment cancelling a reconciliation PAYE96340, where a reconciliation results in a Simple Assessment year the following rules apply to ensure ETMP and NPS are aligned:

  • Where the reconciliation is cancelled immediately following a reconciliation, prior to submitting the calculation result. This will ensure the result has been cancelled before NPS notifies ETMP of the charge details
  • Where a tax calculation is cancelled after the calculation has been submitted by the operator a manual re-reconciliation is required on the original calculation result. This action will ensure NPS and ETMP are aligned
  • Where a tax calculation resulting in a Simple Assessment year is cancelled at a later stage (for example after the moving away from the Reconciliation screen and returning to cancel the result), a manual re-reconciliation is required on the original calculation result following the cancellation. This action will ensure NPS and ETMP are aligned

Tax calculations done as part of a multiple year reconciliation

You cannot cancel a tax calculation in isolation where the calculation concerned was done as part of a multiple year reconciliation. In such cases you need to cancel all calculations within the reconciliation (PAYE96235) before, if required, you proceed to

  • Amend the incorrect calculation (PAYE96230)
  • Approve the amended calculations / multiple year result for issue (PAYE96225)

Note: Where you cancel a single year tax calculation by selecting the Cancel Tax Calculation action link (PAYE93037), or cancel a multiple year tax calculation through the Cancel Multiple Tax calculations action link (PAYE93016) and the PAYE record for the year remains un-reconciled at the date the NPS database is scanned to identify un-reconciled cases (PAYE96001), work item 309 (action guide tax36066 WMI309) will be output for the case to be clerically reviewed.