PAYE96201 - Reconcile individual: reconciling CY-4 to CY-2: introduction

Note: You will need to be aware of the instructions at PAYE96250 before you include CY-6 and / or CY-4 in a multiple year reconciliation.

Where you attempt to reconcile (or re-reconcile) any year prior to CY-1 online or, where the system automatically does so and the year concerned is 2008 2009 or later, the system will apply the validation and ripeness checks for the year concerned and all subsequent years up to and including CY-1. Where possible, it will also perform a multiple year reconciliation in respect of the years concerned. For example, if reconciliation is triggered for CY-4 and all information required to reconcile CY-3 to CY-1 is held, all years CY-4 to CY-1 will be reconciled as part of a multiple year reconciliation. Where

• The reconciliation is triggered by the system and

• Where the year is reconciled overpaid or underpaid and the underpayment can be collected by a tax code a P800 will be issued
• Where the year is reconciled underpaid and the underpayment amount cannot be collected by a tax code the underpayment will be collected by Simple Assessment and a PA302 will be issued PAYE96300
• The system can identify up to 5 reasons as to why the customer is over / underpaid, the relevant Tax Calculations (P800 and/or PA302) will be issued automatically and the customers PAYE Service Reconciliation and Accounting records will be updated with details of the calculations issued
• The system identifies more than 5 reasons as to why the customer is over / underpaid, the case will be output as work item 300 (Action guide tax36112) for manual review

• The reconciliation is triggered online you will be presented with the Multiple Years Reconciliation Summary screen (PAYE93016). The screen displays details of the years to be included within the multiple years reconciliation process and you will need to review the tax calculations (PAYE96220) for all relevant years before you either

• Approve them for issue (PAYE96225)
  Or
• Amend (PAYE96230) and then approve them for issue
  Or
• Cancel them (PAYE96235)

Where it is not possible to perform a multiple year reconciliation (for example where CY-4 is being reconciled but CY-3 cannot be reconciled as an expected P14 or ‘End of Year’ (EOY) Record information for the year is outstanding) or the reconciliation only covers CY-1, the system will perform a single year reconciliation only (PAYE96210).

At the point at which the system issues the appropriate Tax Calculations to the customer, up to 4 (P800) calculations will normally be co enveloped together. However this will not always be the case and in some instances the P800 will be enveloped separately.

A separate (PA302) will be issued for each Simple Assessment tax year. Where multiple year reconciliation results in both a (P800 and PA302) tax calculations, these will be issued separately.

Note: The PAYE Service does not retain un-issued calculations for multiple year reconciliations; it only retains them for single years.