PAYE96225 - Reconcile individual: reconciling CY-4 to CY-2: reconciling multiple years - approving tax calculations for issue
Action to take
After you have reviewed all tax calculations (PAYE96220) within a multiple year reconciliation, you have the final option to approve for issue (PAYE96225) or cancel (PAYE96235) the calculations. In cases where you are content with the calculations and you wish to approve them for issue you should do so by selecting the Approve Multiple Tax Calculations action link in the Multiple Years Reconciliation Summary screen. This will set the status of all of the tax calculations within the multiple year reconciliation - other than years that are ‘Reconciled - Balanced’ (see below) to ‘Pending’ and the Tax Calculations (P800) in respect of the years concerned will be issued to the customer at a later date
Note: You must take care when you decide to approve multiple year tax calculations for issue as, once done (that is, once they are set to Pending) you cannot cancel them from being issued.
Years cleared as ‘Reconciled - Balanced’
Where a particular year within a multiple year reconciliation is ‘Reconciled - Balanced’ and you select the Approve Multiple Tax Calculation action link in the Multiple Year Reconciliation screen, although a copy of the calculation will be retained on the system to allow you to view it at a later date, a Tax Calculation (P800) in respect of the year concerned will not be issued to the customer.
For example, in a multiple years reconciliation covering years CY-3 to CY-1, if CY-3 is ‘Reconciled - Underpaid’, CY-2 is ‘Reconciled - Balanced’ and CY-1 is ‘Reconciled - Overpaid’, Tax Calculations (P800) will be issued for CY-3 and CY-1 only.
Any years reconciled as underpaid and the underpayment cannot be coded will be collected by Simple Assessment. For these years a PA302 will be issued.
This may lead to customer enquiries being received with regard to years cleared as ‘Reconciled - Balanced’ (CY- 2 in the above example) and where this is so you should follow the ‘Multiple year reconciliation’ guidance at PAYE93075. This applies to years ‘Reconciled - Balanced’ as part of a multiple year reconciliation only and where a single year reconciliation is cleared as ‘Reconciled - Balanced’ you can issue a Tax Calculation (P800) for the year by selecting the Issue Balanced Tax Calculation action link (PAYE93037) in the appropriate Tax Calculation screen.