PAYE96305 | Reconcile individual: simple assessment: PAYE reconciliation processing

A Simple Assessment year occurs when the final result of a reconciliation or multiple year reconciliation is underpaid and the underpayment cannot be coded. Where the underpaid result cannot be coded the following Simple Assessment process will continue as follows:

• Voluntary payments and overpayments can only be applied if these fully clear the Simple Assessment underpayment. Any that would only part pay a Simple Assessment will be repaid (see PAYE96310)

• Any ‘outstanding debts’ for example Self Assessment, Tax Credits or National Insurance, included in the initial reconciliation will be cancelled from NPS and a message will be issued to the original head of duty system

• Years in Simple Assessment will stay in Simple Assessment if they remain underpaid following a re-reconciliation. This includes where a re-reconciliation underpayment would be eligible to be collected by the tax code

• If the re-reconciliation result is overpaid the ETMP charge will be cancelled

• If an underpayment is collected by Simple Assessment NPS will update the Reconciliation Summary screen by entering a ‘Y’ in the Simple Assessment field. Any years not in Simple Assessment will be blank

Note: Where there is a first reconciliation or re-reconciliation result in 2015-16 resulting in an underpayment which cannot be coded, a Simple Assessment charge will not be created.