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HMRC internal manual

Debt Management and Banking Manual

Debt and return pursuit: PAYE: in-year process: how PAYE debts occur

The legislation which allows us to collect PAYE is covered in the Income Tax (Pay as You Earn) Regulations 2003.

A PAYE debt can occur in a variety of ways

  • an employer fails to pay their in-year PAYE by the 19th of the month (or 22nd if paying electronically): Regulation 69
  • an employer submits their end of year return but without the balancing payment: Regulation 69
  • when HMRC advise the employer of our calculation via form P101 (Regulation 78) of their outstanding in-year PAYE debt or the employer advises us via form P100 (Regulation 77), but the debt is not paid within the 7 day time limit: Regulation 78
  • an officer of HMRC visits an employer to calculate their PAYE liability. This is referred to as quantification and a PAYE debt will occur if the employer has not fully paid the PAYE due. Schedule 36 FA2008 allows us to visit and quantify and Regulation 79 covers the application for the payment identified during the visit.