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HMRC internal manual

Debt Management and Banking Manual

Interest: Interest Review Unit (IRU): PAYE and National Insurance Contributions: Wages paid in another year (includes director bonuses)

An employer or agent may claim that some or all of the wages included in the annualreturn were actually paid in a different year from that shown on the return. Most of thesecases will relate to director’s fees and bonuses.

These claims not only question the interest charge but are also an indication thatincorrect returns may have been made. They also provide important information forEmployer Compliance’ analysis.

Only the local employer compliance office can make the decision about what year thepayment was made. There are guidelines to determine the date when PAYE should be judged aspaid.

This type of objection should be passed to the relevant employer compliance office forthem to talk to the employer to resolve the matter.

Ask the office to send the case back to the IRU only if the wages payment has beenaccounted for correctly and the interest charge is correct, but the taxpayer continues toobject.

The employer compliance office may confirm that the information is incorrect but will askthe IRU, for administration reasons, not to change the PAYE record. In these cases, acceptthe request, by theoretically recalculating and giving up the excess interest.