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HMRC internal manual

Debt Management and Banking Manual

Debt and return pursuit: PAYE: introduction to PAYE: interest: clerical interest

Occasionally interest will need to be raised clerically on BROCS, or an amendment is needed to an interest charge raised either automatically or clerically. For example to include interest in enforcement proceedings taken before returns have been processed.

You can calculate interest on the total end of year tax, NICs and CIS deductions as a single combined amount of interest. Where SLD remains unpaid, calculate interest in the amounts separately.

BROCS interest adjustments from additional or amended returns

If an employer submits an additional or amended return, BROCS will recalculate interest on the revised amounts adjusting any interest already charged.

Stopping automatic BROCS interest - Clerical Interest signal

The clerical interest signal can be set by any DMB office and is set for a particular year (or years) on an employer’s record to stop BROCS automatically calculating interest.

Once set, it will show on BROCS, for the relevant year(s) under

  • VTP F5 as `CLERINT’
  • VTP F9 as ‘CLERICAL INTEREST CASE’
  • as a HISTORY note ‘CLERINT’ with the date the signal was set.

The signal will only show on BROCS when it is set to ‘Y’. And once set at ‘Y’ it cannot be changed to ‘N’ if there is an interest charge on record for the appropriate year.

Setting or un-setting the clerical interest signal

The signal can be set or un-set

Clerically - using BROCS function DIS and selecting either ‘Setting the clerical interest signal’ or ‘Un-setting the clerical interest signal’ as appropriate

Automatically - when an interest charge is

  • created or amended using BROCS function INT or
  • discharged clerically using BROCS transaction DIS.