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HMRC internal manual

Debt Management and Banking Manual

Debt and return pursuit: PAYE: in-year process: the PAYE debt process

When an employer fails to pay their in year liability, the debts follow a certain process to the point of enforcement. That process depends upon

  • the amount of money we estimate the employer has to pay (EMY - Estimated Monthly Yield); the greater the amount, the higher priority given to the debt
  • the frequency of the employer’s payments (monthly, quarterly or annual)
  • the type of PAYE scheme (for example Direct Payment schemes are set at quarterly irrespective of amount paid).

All employers are given an EMY and these are split into band types 1 to 7, with Band 1 covering employers who pay £10,000 or more per month down to band 7s who pay from £0 to £199.99. We do have bands 8, 9 and 10 - but these are for specific employers irrespective of the amounts paid (see DMBM520200).

Once an employer fails to pay their in-year PAYE payments, BROCS will, depending on the band type and any signals set, issue the appropriate payment reminder(s). If they remain unpaid BROCS will notify IDMS of this failure and the PAYE debt will start the enforcement path.

Depending on the signals set on the record, IDMS will either

  • issue a warning letter
  • send the debt to the Debt Management Telephone Centre (DMTC) for initial telephone contact
  • send the work item to the DTO for a local approach.