Employer Further Guide to PAYE and NICs - HM Revenue & Customs

53 Trade dispute ends in the same tax year
it began
If the trade dispute ends in the same tax year it began,
take the following action:
• pay any refunds that you have withheld as soon as
possible after the employees return to work
• follow the procedure at paragraph 55 for any employee
whose withheld refund you cannot pay
• work out how much you owe to, or are owed by, the
accounts office. Remember to allow for any deductions
from payments to the accounts office that you have
already made
• where your calculations show that you are owed by the
accounts office you can either:
— deduct the amount you are owed from future
payments you make to the accounts office, or
— claim the money back from the accounts office who
will deal with your claim urgently. Your claim must
be in writing and show how you have worked out the
amount you are claiming.
54 Procedure at the end of the tax year if the
trade dispute has not ended
You must take the following action at the end of the tax
year if the dispute has not ended:
• fill in the normal end of year forms as if you had actually
paid the refunds you are withholding
• complete form P60 to give to the employee, by 31 May
and, either:
— enter a single figure of tax deducted on form P60
and give the employee a statement of tax withheld
on form P61, or
— give a separate statement on form P60 of the tax
withheld and give the employee a form P62
• continue, for the following tax year, to
— carry out normal PAYE calculations
— withhold the tax refunds for as long as the employee
is involved in the trade dispute.
You can get forms P61 or P62 from HMRC Customer
Operations Employer Office.
55 Procedure for employees whose withheld
refunds you cannot pay at the end of the
trade dispute
Where an employee does not return to work at the end
of the trade dispute, and you do not know where he or
she is, you will not be able to pay the withheld refund to
the employee. You should take the following action in
such circumstances:
• pay to the accounts office any tax you have not refunded
to an employee within 42 days of the end of the
trade dispute
• where form P35 for the tax year to which the refund
relates has not been sent, note your records to ensure
that you include the figure of tax not refunded on forms
P35 and P14 at the end of the tax year
• where form P35 for the tax year to which the refund
relates has been sent
— prepare an additional form P14 for each employee
involved to show the amount of tax which has not
been refunded
— send these additional forms P14 to us with a
covering list of names, amounts and the total of the
unrefunded tax.
56 – 59 not used - reserved for future use.
29 Chapter 2 CWG2(2012)