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HMRC internal manual

Debt Management and Banking Manual

Debt and return pursuit: PAYE RTI: payments: small underpayments and remissions

De minimis limit for creating underpayments and sending debts to IDMS

ETMP applies de minimis limits when reconciling an employers or contractor’s returns and payments to determine if an underpayment should be created and when to send debts to IDMS.

Creating an underpayment on ETMP

ETMP applies a de minimis limit of £32 to RTI and CIS interest charges and will write off any outstanding balance below this sum.

If both PAYE and CIS charges are created, ETMP looks at each amount underpaid separately and applies the de minimis limit to each outstanding amount.

Sending debts to IDMS

ETMP sends all debts over £32 to IDMS if there are open work items on IDMS. If there are no open work items on IDMS, debts of £200 and over are sent to IDMS when they become due. Debts under £200 are held on ETMP until the total value of the debts outstanding reaches £200, at which time the debts are sent to IDMS.

Annual automatic write-off of small debts

Each year, shortly after 22 April, ETMP reviews all small debts that have not been sent to IDMS and where the total balance on the account is below £200, it automatically writes off these debts.