HMRC have provided a tool to retrieve information from the Data Provisioning Service (DPS) that holds the changes made to employee’ tax codes through P6, P6B and P9 notices and changes to Student Loans through SL1 and SL2 notices.
The tool and guidance on its use can be downloaded from http://www.hmrc.gov.uk/paye/tools/PDV/
The PDV software should be installed on a PC that will be used to retrieve the information from HMRC, we recommend that only one PC is used for PDV processing.
HMRC posts employee tax code and student loan changes into a single database.
When you connect to HMRC through the PDV by selecting ‘Download Notices’, the DPS services uses the User ID, Password and PAYE Reference provided to retrieve all the notices that have been posted since the service was last accessed.
If you are an agent then there is no need to enter a PAYE Reference. All notices for all your registered FBI2 clients will be downloaded.
Using the option 'Search Notices' from the left hand menu bar select the type of notice you want
to export using the Notice Type drop-down options, selecting the relevant options and clicking 'Search'
This will return all tax notices which you can select.
The ‘Actioned Status’ within the PDV software is an internal reference in this database which can be used to indicate those notices that have been exported.
If you manage the notices in this way then, after downloading notices, the new notices received but not exported can be selected by setting the selection options to 'Unactioned Notices'
This will then return any notices without 'Actioned status' ticked.
Click the 'Save to CSV file option, then select the 'Export' button and then select a folder which can be accessed by the payroll software.
You can then give the file a name, e.g. Tax Codes <today’s date> and click save.
A message confirming the save will then appear.
Then select 'Back to results list'.
Left click on the first notice, hold down <Ctrl> and <Shift> and select the last notice, right click and select ‘Action selection’
This will set the notices exported as actioned.
WARNING: Do NOT open the exported file using Excel since this will change the file format and it will not import into the payroll software.
If you wish to view the exported file then create a copy of it to open in Excel.
Importing into Payroll
Use the menu option Employee>Update employees from PAYE Desktop Viewer
Select the location the files were exported to
Select the required file from the file list, since there may be many there
When the file has been selected click 'OK'.
A progress bar will display, and when finished it will show a message showing the number of employees updated, which you need to click 'OK' for.
A report will also be produced for employees not found
Employees may be rejected for a number of reasons:
- The PAYE Reference does not exist for any company
- The employee NINO does not exist in the company
Employee successfully updated will have a new tax code and effective date
If a P6 has been received with previous employment figures these will be inserted in the Previous Employment frame, and the P6 details box checked
If SL1 and SL2’s have been processed the employee will have a student loan start date or stop date added in the Rates tab