PAYE94021 - Reconcile individual: in-year reconciliation: special circumstances (Action Guide)
Where any of the following circumstances apply to a claim, an Assistant Officer should consider steps 1 - 29 as appropriate. The guide is presented as follows
Statutory Maternity Pay received
Steps 1 - 18
Steps 19 - 20
Steps 21 - 27
Steps 28 - 29
Statutory Maternity Pay received
Take the following action for the year in which the employment ceased
1. Follow action guide tax80064 and then go to step 2.
2. Calculate any balance of unused allowances for the current year:
- If there is no balance of allowances go to step 3
- Write to the individual to advise them why the repayment can not be made now. Ask them to resubmit their claim once the Statutory Maternity Pay (SMP) has ceased and to include details of the SMP received
- Make a note in Contact History with details of the action taken
- Make a note in Contact History with details of where the claim papers are held.
3. Once the customer resubmits their claim, write to the employer requesting details of the Statutory Maternity Pay up to that date and the tax deducted.
4. Create a paper BF (PAYE105520) for 6 weeks:
- Make a note in Contact History with details of the action taken
- Make a note in Contact History with details of where the claim papers are held.
5. If the details are provided by the employer:
- Prepare a pro-forma form P45
- Input the P45 figures using the Batch Processing role
- Work item 130 will be created after the overnight process has run.
6. If the details are not received send the employer a reminder and go back to step 4.
Take the following action for the year following the year in which employment ceased.
7. Review the papers and Contact History Notes to determine if the individual will receive Statutory Maternity Pay during this year.
8. If the individual will not receive Statutory Maternity Pay for this year, no further action is required.
9. If the individual will receive Statutory Maternity Pay for this year, create a paper BF to the date that the Statutory Maternity Pay is likely to cease.
10. Once the BF is ready for review write to the individual, asking them to reply in writing and tell you whether:
- They are claiming or intending to claim Jobseeker’s Allowance or Incapacity Benefit
And - Whether they intend to take up further employment (including part-time, casual or self-employment) before 6 April next.
11. Create a paper BF, to review in 6 weeks:
- Make a note in Contact History with details of the action taken
- Make a note in Contact History with details of where the claim papers are held.
12.
If the individual has not replied go back to step 10 and re-issue an enquiry.
13. If the individual replies yes to either question at step 10:
- Set the Inhibit Automatic Reconciliation signal on the Reconciliation Summary screen
- Write to the individual to advise them why the repayment can not be made now
- Make a note in Contact History with the details of the action taken
- Make a note in Contact History with the details of where the claim papers are held.
14. If the individual replies no to both questions at step 10:
- Write to the employer and request the amount of Statutory Maternity Pay and tax deducted since 5 April.
15. Create a paper BF, to review in 6 weeks:
- Make a note in Contact History with the details of the action taken
- Make a note in Contact History with the details of where the claim papers are held.
16. If the details are provided by the employer:
- Make a note in Contact History. Use note ‘In-year cessation repayment SMP received’ from the SEES notes paster to record the employer’s reply
- Follow action guide tax80064
17. If the employer has not replied:
- Send the employer a reminder
- Go back to step 15.
18. If neither the individual or the employer replies:
- Write to the individual to advise them the repayment can not be made without the outstanding information
- Make a note in Contact History with the details of the action taken
- Make a note in Contact History with the details of where the claim papers are held.
Entry into business
Where an individual:
- Ceases employment and informs you that he has started or is already in business
And - Is unlikely to take up further employment before 6 April next.
19. Follow action guide tax80064 and then go to step 21.
20. Follow the action guide at PAYE62040
Individual is in prison
On receipt of a claim for a repayment from an individual who is in prison or Young Offenders Institution.
21. Follow action guide tax80064, but you must follow either step 22 or 23 for guidance on who to make the payable order out to:
- If the prisoner is in an HM Prison or HM Young Offenders Institute go to step 22
- If the prisoner is in a privately run prison or Young Offenders Institute go to step 23.
22. Where the prisoner is in an HM Prison or HM Young Offenders Institute the payable order needs to be made payable to the prison as nominee as follows:
- Select Issue Payment to Nominee
- Complete the Forename and Surname field with the prisoners name
- Show the prisoner’s prison number in the first line of the Address field
- Complete the prison address in the Address field from line 2
- Enter ‘NOMS Agency’ in the PAYEE field.
Note: The following alternatives are acceptable if a request is contained in the claim to repay other than NOMS Agency:
- HM Prison Service
- NOMS
- The Governor, followed by the name of the prison.
23. Where the prisoner is in a privately run (contracted out) prison or Young Offenders Institute make the payable order payable to the prison as a nominee as follows:
- Select Issue Payment to Nominee
- Complete the Forename and Surname field with the prisoners name
- Show the prisoner’s prison number in the first line of the Address field
- Complete the prison address in the Address field from line 2
- Go on to the Justice.Gov.UK website
- From the list on that site note the full name of the organisation running the prison
- Enter this is the PAYEE field.
Notes:
a. The latest list of contracted-out prisons can be found on the Justice.Gov.UK website.
b. Only issue a manual repayment if the original is returned from the prison and any suggested name / address supplied by the prison cannot be used to repay a nominee in NPS.
24. In all cases, make a note in Contact History with details of the action taken and details of where the claim papers are held.
25. Review the papers and check Contact History for any information regarding when the individual will leave prison.
26. If the individual is due to leave prison before 5 April next:
- Enter in Contact History ‘In-year cessation repayment customer in prison’ from the OCA notes paster in Contact History and note that the individual is due to leave prison before 5 April next
- Make a Contact History note with details of any other action taken.
27. If the individual is not due to leave prison until after 6 April next, or the release date is not known:
- Enter in Contact History ‘In-year cessation repayment customer in prison’ from the SEES notes paster and note that the individual is not due to leave prison before 5 April next, or that the date of release is not known
- Enter the prisoner number on line one of the Address field followed by the full address of the prison from line two onwards.
Individual has died
28. From October 2014, form R27 has been abolished. Reconciliation will be triggered automatically for a deceased customer, provided:
If there is no capacitor, NPS will issue P1000 to identify one
Once Reconciliation has been performed a P800 or PA302 will be issued to the Capacitor unless the result is Reconciled - Balanced
If the case has an SA interest the repayment must be dealt with through SA.
29. If the case is on PAYE only, follow action guide tax80016 and TSEM7460 onwards in the Trusts and Estates Manual.