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HMRC internal manual

Debt Management and Banking Manual

Debt and return pursuit: PAYE: e-payment default: payments allocated to the wrong month

Because an electronic payment does not carry a month number BROCS will allocate the payment to the latest open month. This means that, exceptionally, it is possible for an employer’s electronic payment to be allocated to an incorrect month.

For example

Month 1- paid 20/05/2009

Month 2- unpaid at 22/06/09, default notice issued. If month 2 is paid after month 3 becomes due the payment will be allocated to month 3 and the employers record will be treated as up to date. This means that an employer could make all future payments to the end of the year a month in arrears without attracting further defaults.

To identify this type of default, every quarter you will receive a printed list of employers headed “Payments allocated to the wrong month” where this type of payment pattern has been identified in the previous quarter.

On receipt of this list

  • check BROCS to confirm the payment position and where the payments are unsatisfactory
  • restore LA on BROCS to provide a replacement work item on IDMS.

The following working day you will receive an IDMS work item on your C/W PAYE worklist. On receipt

  • take the actions described in DMBM ‘In year procedures where Monthly payments are overdue’
  • issue default notice(s) manually and
  • amend the Default Notice Count on BROCS.

You should receive these lists by 3rd of the relevant month. If you do not receive the list

  • contact the IT Service Centre (This content has been withheld because of exemptions in the Freedom of Information Act 2000) .