SAM125120 | Returns: returns work lists: w037 reduction of amount coded out

A work item will be created on the ‘Reduction of Amount Coded Out’ Work List when

• A balancing payment less than £3000 has previously been transferred to PAYE for coding out in CY+1

And

• The amount available for transfer has now been reduced by use of one of the functions AMEND RETURN, AMEND RETURN FOR ENQUIRY, CREATE RETURN CHARGE, CREATE RETURN CHARGE FOR ENQUIRY or UNLOG RETURN

The ‘Reduction of Amount Coded Out’ Work List is allocated to the Clerical Processing Officer in the office with processing responsibility.

• Function SELECTED CASE will show the return year and the adjustment to the amount already coded out for the selected work item. (Note: This is a reduction, and must always be a minus figure)

A work item will also be created for all cases where the ‘Last Year for SA Return’ signal has been set and a return, which includes a PAYE source of income, is amended. Note: The amount for these cases will be shown as ‘0.00’

You must now

• Reconsider the PAYE coding

• Delete the work item

In addition to the above a work item will be created for cases where

• There has been an amount previously transferred to PAYE

And

• The entry at box 8 of the Tax Calculation Summary page TCS 1 (potential underpayment) of the amended return has changed from that shown on the earlier version of the return

Potential underpayments are not automatically coded by PAYE where the PAYE record shows the taxpayer is an SA taxpayer for the year in question. However, there may still be cases where the potential underpayment will have been coded, for example

• The taxpayer has asked us to do this

Or

• The SA signal was not present on the PAYE record at the time that the potential underpayment arose

When this happens, the taxpayer will have entered an amount in box 8 of the Tax Calculation Summary page TCS 1.

Where an SA underpayment is transferred automatically to PAYE and the return contains an entry at TCS 1 box 8, the amount from that box is also notified to PAYE. This ensures that the entry in the PAYE Service ACCOUNTING function is correctly updated.

Any change to the amount in TCS 1 box 8 may result in an increase or a decrease to an amount previously transferred. You must

• Manually update the PAYE Service ACCOUNTING function to ensure that any changes arising from the amended return are correctly recorded

• Ensure that the amount entered in the PAYE Service ACCOUNTING function shows the total amount transferred to PAYE, including any amount entered at TCS 1 box 8 of the amended return

• Where necessary, use function RECORD TRANSFER TO COP to transfer any further underpayment

• If required, make any necessary adjustment to the amount included in the PAYE coding

For further information regarding this subject, see W037 - Reduction of amount coded out (SAM71124)