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HMRC internal manual

Debt Management and Banking Manual

Debt and return pursuit: PAYE: introduction to PAYE: payments: payments made for the current year on an incorrect payslip

Some employers incorrectly make payments for the current PAYE year using an earlier year’s payslip or quoting a previous year suffix in the reference if paying electronically and their payment is then allocated to the previous year, leaving the current year unpaid.

In order to minimise the risk of payments being allocated incorrectly, any payment received after 19 May for the previous year, where there is already a month 12 payment held for that year, will be automatically reallocated by BROCS to the current year. No RPI will be added.

A BROCS History note `MISALLOC’ will be created to show the automatic reallocation to the current year.

If the earlier year later becomes underpaid, the reallocation will be reversed, but if the payment has been moved to another record, the case will be made RFI (Refer for Instructions) for DMB Banking Operations to work.

The exception to the above is where the payment is for a previous year which:

  • is already overpaid
  • the expected returns have been received
  • the case is WWTD
  • the case is on IDMS.

In these circumstances no automatic reallocation will take place. The case will remain WWTD or on IDMS and an update will be issued.