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HMRC internal manual

Debt Management and Banking Manual

Debt and return pursuit: PAYE: Introduction to PAYE: Repayment Interest (RPI): Introduction and Regulations

For example an electronic payment for £10,000 made on 7 January 2009, for the 2008-09 tax year is re-allocated to Corporation Tax on 1 May 2009. RPI is due for the period from 22 April 2009 to 1 May 2009.

No RPI is due if the payment was incorrectly allocated to the employer’s PAYE account and is later re-allocated to the correct tax liability, or repaid to the employer. The original payment date should be used if the payment is re-allocated.

RPI can be calculated (or amended) and awarded automatically or clerically. Once raised it will show on BROCS payment screen as RPI and will be included in a repayment or re-allocation.

Lower limits and exemptions

There is no lower limit for RPI; even if this amounts to only pence, this will still be added to the employer’s record.

There are no exemptions from RPI; all employers are eligible to receive this.