HMRC PAYE Update: P11D processing
HMRC has provided a further informal update on PAYE related matters. This update includes information on the automatic processing of P11Ds and the resultant issue of tax codes and P800 tax calculations.
We are in the final stages of testing the interface between the Employer Compliance System (ECS), on which all P11D information is held, and NPS.
We used the interface last year which allowed the automatic update of the 2009-10 tax codes but this is the first time the opening of the interface will automatically generate tax codes for the current year, 2010-11 and P800 tax calculations for 2009-10. We have already carried out rigorous testing to ensure outputs are correct and we are now at the stage of testing the interface in the live environment.
On 4 November, we opened the interface to allow around 24k cases to flow from ECS to NPS. Some employees will receive an amended notice of coding for the current year and some will receive a tax calculation for the previous year. Some may receive both. Employers will receive P6s. We will be checking outputs for correctness before we move to full live running.