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HMRC internal manual

Debt Management and Banking Manual

HM Revenue & Customs
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Debt and return pursuit: PAYE: introduction to PAYE: payments: BROCS payment allocation rules

Any payment received by BROCS suffixed with a particular year and month after the Accounts Office reference number will be allocated on the BROCS record to that year and month. For example 123PP456789101 1002 relates to 2010 month 02.

Payslips in the payslip booklet each have a suffix after the Accounts Office reference to show the period that it relates to. Reference numbers for electronic payments can also be suffixed in the same way.

BROCS will assume that any payment received without a suffix relates to the current month and any earlier month that has not yet been paid. For example, where no payments have yet been made for a particular year and a payment is received within month 3 (that is up to and including 5 July), BROCS will allocate against month 1, 2 and 3.

Employers do not have to split their payment between Tax and NIC; payslips have a single field for the amount being paid and electronic payments are made in a single amount too. During the year, BROCS will automatically split these between Tax and NIC.

After the employer’s end of year return has been processed, BROCS will review the payment allocation, moving payments to clear any student loan deductions before splitting the remainder between Tax and NIC. If any Tax is then overpaid, the overpayment will automatically be re-allocated to any NIC underpayment with any balance overpaid being held as a Tax overpayment (or vice versa for NIC overpayments).