PAYE96220 - Reconcile individual: reconciling CY-4 to CY-2: reconciling multiple years - reviewing tax calculations
Where multiple year reconciliations are triggered online, you must review each years calculation individually in earliest to latest year order before determining whether or not they are correct. The review should take full account of all circumstances relevant to the case (for example the benefits coded in the year against those on the P11D that have been included in the tax calculation) and during the course of it you should
- For each calculation, review and where necessary amend the reasons automatically selected by the system as to why a customer is over / underpaid. In reviewing the reasons, the instructions at PAYE93040 (overpayments) and PAYE93045 (underpayments) give details of items you need to be aware of
- Where a particular year within a multiple year reconciliation is cleared as ‘Reconciled - Balanced’, put a free hand note (in the appropriate ‘Other reasons’ field) on the tax calculation preceding the balanced year of ‘The underpayment has been carried forward’. In the case of an overpayment, the note should be ‘The overpayment has been carried forward’
- Where the final result of a multiple year reconciliation is that a repayment is due and the customer has authorised the repayment to be made to a nominee, only record details of the nominee in the Insert Repayment Recipient screen relevant to the latest tax calculation being issued. For example, in a case where the multiple year reconciliation covers 3 years but the final year is ‘Reconciled - Balanced’, you will need to enter the nominee information into the tax calculation preceding the ‘Reconciled - Balanced’ year
- Where a year within a multiple year reconciliation has no employments recorded against it, the year will be cleared as ‘Reconciled - Balanced’ not, ‘Reconciled - No Employments’ as would be the case if the year concerned was cleared by an annual scan (PAYE96001) of the PAYE Service database
- Where a multiple year reconciliation includes a Simple Assessment year, the multiple year reconciliation review screen will indicate if a year has been reconciled as Simple Assessment by displaying a ‘Y’ in the ‘Simple Assessment’ field
- A simple Assessment will only be created where a cumulative result for a multiple year reconciliation is Reconciled – underpaid and the underpayment cannot be coded. See PAYE96315
Where you are
- Content with the tax calculations within the multiple year reconciliation you should approve them for issue, see PAYE96225
- Not content with the tax calculations within the multiple year reconciliation and you wish to amend any of them prior to approving them for issue, see PAYE96230
- Not content with the tax calculations within the multiple year reconciliation and you wish to cancel them, for example whilst you make further enquiries, see PAYE96235
Where you are called upon to review tax calculations already issued (for example, on receipt of a customer enquiry) that were part of a multiple year reconciliation, you must review each years calculation individually in earliest to latest year order to determine / confirm how each years result was arrived at / set at the time the calculations were issued.