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HMRC internal manual

Debt Management and Banking Manual

Debt and return pursuit: PAYE: e-payment default: DMEU action - phoning large employers

All cases

On receipt of the In Year PAYE work item (starting first working day after the 22nd of the month)

  • review IDMS Action History to decide which enforcement method is most appropriate
  • telephone the employer and request payment
  • warn of enforcement action if not paid see DMBM521040 and
  • advise the employer that because payment has not been made a default notice will be issued on the 28th of the month
  • warn that a notice will be issued, based on previous history, to specify the employers’ liability with a view to enforcing the debt
  • make a note on IDMS Action History and
  • check that the EMY shown on BROCS is accurate and amend if not (DMBM521060).

Action after telephone call

If the debt is not paid after the telephone call then immediately move the item to the Establish Debt process.

Quarterly payment cases

Where the work item relates to an employer whose monthly payment amount falls within the quarterly payment criteria (i.e. band types 5 to 7 - EMY less than £1,500) and you identify that they have paid late

  • do not set default or issue a default notice. The e payment legislation does not apply to employers who can choose to pay quarterly as per Regulation 70 of the Income Tax (PAYE) Regulations 2003.

For further information see DMBM521090.

Northern Ireland

When talking to an employer in Northern Ireland advise the papers will be passed to the DTO in Northern Ireland to take distraint action.


When talking to an employer in Scotland advise the papers will be passed to the DTO in Scotland who will apply to the Sheriff Court for a summary warrant.

A summary warrant can be enforced by any of the following methods

  • attachment and auction sale of any moveable goods belonging to the employer or
  • arrestment of any monies owed to the employer by a third party.