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HMRC internal manual

Debt Management and Banking Manual

From
HM Revenue & Customs
Updated
, see all updates

Debt and return pursuit: PAYE: in-year process: reminder cycle

For the full reminder cycle see BROCS021.

Monthly payers

All employers can make monthly payments, even those who could pay quarterly. However, for the purposes of PAYE enforcement only payment bands 1-4 are treated as monthly payers.

A monthly payer may advise HMRC that, on average over the tax year, their monthly payments have reduced / will reduce to less than £1,500 a month. We can make the change to a quarterly payer in the current year by amending the BROCS EMY to £1,499.99 or less.

Quarterly payers

Employers who believe their average monthly payments for a tax year will be less than £1,500 (that is £18,000 per annum) can pay us quarterly rather than monthly.

There is no obligation on an employer to advise HMRC that they wish to make quarterly payments and no signal is available on either BROCS or IDMS to identify those employers who pay quarterly. However, all Band types 5-7 are automatically treated as if they are paying quarterly and will be pursued for payment on a quarterly basis.

A quarterly payer may advise HMRC that, on average over the tax year, their monthly payments have increased / will increase to £1,500 or more. We can make the change to a monthly payer in the current year by amending the BROCS EMY to £1,500 or more.

ETMP automatically reviews quarterly schemes (excluding band type 9 schemes which are entitled to pay quarterly irrespective of the amounts due) on 19 July, October, January and April to establish if quarterly status is still appropriate. If the deductions for the tax year to date are £18,000 or more then ETMP will change the payment status to monthly and makes the scheme a band type 4.

Yearly payers

Although not supported by legislation, we allow certain employers to pay annually. This is only where staff or directors only receive yearly payments. We will allocate band type 10 and pursue the payment on the month that the employer makes their annual payment.

An RTI employer is viewed as having annual payment status where they make payments to employees and submit a Full Payment Summary (FPS) in one tax month only. If the employer submits FPSs in more than one tax month in the tax year then annual status is no longer applicable.

The payment status will be changed to monthly and the scheme made a band type 4.