SolvedPAYE21186 | Employer records: maintain employer record: memo from banking operations - new or cancelled sub account (Action Guide)
From HM Revenue & Customs · PAYE Manual
To take the appropriate action when you receive a memo from Banking Operations headed ‘New sub-account’ or ‘Cancelled sub-account’, follow steps 1 - 14 below. This Guide is presented as follows
Steps 1 - 7
Steps 8 - 14
For details of how to access any of the Employer Business Service functions, use PAYE057.
New sub-account
1. Use Function VIEW EMPLOYER NOTES and check the employer record pad to review details of any correspondence
2. Compare the information recorded on both computers
Use Function VIEW EMPLOYER SUMMARY to check the position on the Employer Business Service (EBS)
Use Function VIEW BROCS to check the position on the BROCS record
3. Consider the following
Is the start date on the employer record correct?
Why was the payment made?
Is the payment allocated to the correct employer record?
Is the payment allocated to the correct account sub-number?
Will any other payments be made?
4. Ask the employer / contractor for any further information you need to clarify the position
5. When you have all the information you need decide which of the following situations applies
The start date is incorrect and the payment is due go to step 6, or
The start date is correct and the payment is not due go to step 7
6. If the start date is incorrect
Use Function AMEND EMPLOYER SCHEME HISTORY to change the scheme start date to the correct date. For further guidance see subject ‘Maintain Scheme Start Date’ PAYE27020
Note: Where the scheme type is PSC or XP you must enter a ‘Date Notified’, which is the date you received the information or select one of the following check boxes
‘Date Not Known’ - where you do not know the date you received the information, or
‘Date Not Applicable’ - where the update is being made from information not received from the employer
Tell Banking Operations to allocate the payment held in OAS to the earlier year. Quote the OAS number in your memo / telephone call
7. If the start date is correct
Inform Banking Operations that the start date is correct and how to dispose of the payment. Quote the OAS number in your memo / telephone call
Cancelled sub-account
8. Use Function VIEW EMPLOYER NOTES and check the employer record pad to review details of any correspondence
9. Compare the information recorded on both computers
Use Function VIEW EMPLOYER SUMMARY to check the position on EBS
Use Function VIEW BROCS to check the position on the BROCS record
10. Consider the following
Was the year (sub-account) cancelled on the employer record correctly, either by
Using Function AMEND EMPLOYER INDICATORS to set the COYO indicator for that year
Using Function AMEND EMPLOYER SCHEME HISTORY to cancel the employer record
Using Function AMEND EMPLOYER SCHEME HISTORY to set a cessation date in an earlier year
Check e-Filestore for relevant years P35
Contact employer by telephone to enquire why payment has been made
Will any other payments be made?
Is the payment allocated to the correct employer record?
Is the payment allocated to the correct account sub-number?
11. Ask the employer / contractor for any further information you need to clarify the position
12. When you have all the information you need decide which of the following situations applies
The year was cancelled incorrectly and the payment is due go to step 13, or
The year was cancelled correctly and the payment is not due go to step 14
13. If the year has been cancelled incorrectly
Re-open the year (sub-account) either by
Using Function AMEND EMPLOYER INDICATORS remove the COYO indicator for the year
Using Function AMEND EMPLOYER SCHEME HISTORY to re-open a cancelled employer record. See Action Guide ‘Reopening An Employer Record’ emp80092
Note: An employer record can only be reopened in the year it was originally cancelled or in the following year
Using Function AMEND EMPLOYER SCHEME HISTORY to restart a ceased employer record in an earlier year. See Action Guide ‘Restarting An Employer Record’ emp80092
Notes:
1. An employer record can only be restarted in the year it was originally ceased or in the following year
2. Where the scheme type is PSC or XP you must enter a ‘Date Notified’, which is the date you received the information or select one of the following check boxes
‘Date Not Known’ - where you do not know the date you received the information, or
‘Date Not Applicable’ - where the update is being made from information not received from the employer
Inform Banking Operations to allocate the payment held in OAS to the earlier year. Quote the OAS number in your memo / telephone call
14. If the year has been cancelled correctly
Inform Banking Operations that the year was cancelled correctly. Quote the OAS number in your memo / telephone call